NEST cannot receive auto enrolment favouritism, say pension providers
The Pensions Regulator (TPR) and the Department for Work and Pensions (DWP) have been criticised by a number of pension providers, due to apparently showing favouritism to NEST, the government backed pension scheme set up for auto enrolment.
The complaints have surfaced after letters sent from DWP to 6,000 small and medium sized businesses only gave information on NEST when providing advice on pension options for auto enrolment.
NEST is a unique provider, as it was established by the government with the aim of offering an auto enrolment pension scheme to any employer, regardless of size. CEO of B&CE Patrick Heath-Lay commented that “the market is titled in NEST’s favour” due to its sudden high public profile and went on to say that NEST should not be the” sole point of reference” and other providers, who offer compliant auto enrolment pensions, should also be named.
A spokesman for DWP said that it “does not promote one pension provider over another”. TPR also commented that it would be impractical to list every single pension provider, but does provide links to a portal with a wider range of private pension providers.
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