Government announce plans to lift restrictions on NEST pension scheme
NEST, the government-backed pension scheme which has been set up in preparation for automatic enrolment will have restrictions lifted in 2017.
NEST (National Employment Savings Trust) was set up to provide a default option for businesses which need to enrol their employees on a pension scheme for the first time.
Under the current restrictions, members of NEST have their annual contributions limited to £4,500 and are not allowed to transfer their existing pension savings into NEST. Pensions Minister Steve Webb has announced that there are plans to lift this contribution cap and transfer ban from as early as 2017 – the date when auto enrolment will be fully rolled out across all businesses.
Webb added that he views lifting the restrictions as a positive step to ensure NEST “remains a force for good in the marketplace, driving up standards and best practice.”
With auto enrolment being such a monumental change, having some healthy competition between providers could be good for businesses. With NEST being given the same allowances as private providers, the private providers will need to guarantee that their offerings can match up to NEST.
How are you preparing for auto enrolment? If you are still unsure about auto enrolment and the steps you need to take as an employer, fear not. We are holding our new auto enrolment training courses across the country. Visit the training store to find out more or book a place.