NEST transfer ban to be lifted before 2017
The ban on individual transfers into NEST auto enrolment pension schemes will be lifted before the planned date of 2017, according to pensions minister Steve Webb. Webb also confirmed that the current annual contribution restrictions to NEST would be lifted in 2017, once auto enrolment has been rolled out across all businesses.
Back in July we wrote about how the government was planning to lift these restrictions, which limits members of NEST to annual contributions of £4,500 and bans them from transferring their existing pension savings into NEST.
Initially these restrictions were both planned to be lifted in 2017, but the announcement was made to move this forward, to guarantee that NEST would be able to work alongside the proposed “pot follows member” reform.
Webb commented on this, saying: “We will lift the constraint on individual transfers as soon as we do pot follows member, before 2017. We will lift the other restrictions in 2017.”
He went on to say that the government are planning to introduce “pot follows member” as soon as possible adding: “We are doing it as fast as we can and if we can piggyback on industry initiatives we will”.
Have you started preparing for auto enrolment yet? Experts are advising businesses start getting ready 18 months before their staging date. If you still aren’t sure about what you need to do, why not book a place on one of our auto enrolment training seminars?