In a particularly busy time for the DWP - and indeed the Government-at-large - yesterday the DWP issued two more consultation documents. The first covered in this article is about offering a default option* in defined contribution (DC) automatic enrolment pension schemes. DWP research has shown that the vast majority of jobholders auto-enrolled into DC pension arrangement are unlikely to make an investment choice (they don't have to), which places a heavy burden of responsibility on those charged with selection of the default option.

* the term default option refers to the pension funds and risk management strategy options that are selected automatically for a member joining a pension scheme, unless an alternative is specified.

The condoc seeks views on the design of default options in workplace personal pensions and occupational pensions used for automatic enrolment, how they are offered, how the are reviewed, the governance arrangements and the communication of the default option, including ongoing communications. The DWP previously consulted on this subject in September 2009, to which a response appeared on 23 March 2010.

The second consultation launched yesterday concerns draft regs (The Pension Protection Fund (Prescribed Payments and Investment Costs - Amendment) Regulations 2011) which are designed to amend PPF legislation by reallocating certain costs from the Board's administration budget to the PPF itself.