Friday, 01 February 2013 10:45
Nest suggests removal of restrictions on transfers and contributions limit
Nest (National Employment Savings Trust) has suggested there is a "strong case" for removing the restrictions on transfers in and out of the scheme.
It has also suggested removal of the £4,400 limit on contributions into the scheme which would apply to both employers and members.
The suggestion follows research and evidence received by Nest from employers, member and the private pension markets.
The reasons given for lifting the restrictions were that it would remove complexity and administrative burden for employers as the volume of firms being staged into the process increased in 2014.
It would also allow Nest members to make active decisions about their retirement saving such as increasing contributions or consolidating their pension savings into another scheme.
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Nest argued that removing the limit would not be detrimental to private market provision due to other elements of Nest's framework such as its public service obligation and fixed price.
Nest chief executive, Tim Jones, said: "Nest and the pensions industry as a whole needs to pull out all the stops to make a success of automatic enrolment as the volume of employers being staged rises exponentially in 2014.
"Nest's restrictions complicate the decision-making process of medium-sized employers, many of whom will experience a private pensions sector already busy supporting other clients and who will therefore look to Nest as a potential provider. Removing the restrictions will help us help those employers to get the job done."
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It has also suggested removal of the £4,400 limit on contributions into the scheme which would apply to both employers and members.
The suggestion follows research and evidence received by Nest from employers, member and the private pension markets.
The reasons given for lifting the restrictions were that it would remove complexity and administrative burden for employers as the volume of firms being staged into the process increased in 2014.
It would also allow Nest members to make active decisions about their retirement saving such as increasing contributions or consolidating their pension savings into another scheme.
{desktop}{/desktop}{mobile}{/mobile}
Nest argued that removing the limit would not be detrimental to private market provision due to other elements of Nest's framework such as its public service obligation and fixed price.
Nest chief executive, Tim Jones, said: "Nest and the pensions industry as a whole needs to pull out all the stops to make a success of automatic enrolment as the volume of employers being staged rises exponentially in 2014.
"Nest's restrictions complicate the decision-making process of medium-sized employers, many of whom will experience a private pensions sector already busy supporting other clients and who will therefore look to Nest as a potential provider. Removing the restrictions will help us help those employers to get the job done."
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