The U.K. Department for Work and Pensions (DWP) has launched a probe to review the regulatory differences between trust-based and contract-based defined contribution (DC) schemes, Professional Pensions reports. The move comes in a bid to stop firms from using differences between DC regulations to reduce scheme costs.

The consultation includes solutions against the benefits to individuals, the potential burden on schemes and employers and the government’s de-regulatory agenda. It will run for 12 weeks from Jan. 31, 2011 until April 18. The government’s existing rules allow workers with trust-based schemes, who leave employment within two years, to have their contributions refunded.

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