NEST Rule change consultation 10 February 2016
To bring them into line with new legislation and lift restrictions on the scheme the National Employment Savings Trust (NEST) is consulting on proposed changes to its rules.
NEST has issued a consultation on proposed changes to its scheme rules, which bring aspects of the scheme into line with changes to pension legislation and takes account of the lifting of the restrictions on NEST from April 2017.
The consultation covers various technical items pertaining to NEST’s rules. These include:
Updates to NEST’s rules to allow lump sums and partial lump sums to be paid as benefits as provided for by the ‘freedom and choice’ changes introduced in April 2015 Changes which reflect amendments Parliament has made to the NEST order and their revocation of the ‘Disapplication regulations’ (both from 2017), to lift the restrictions on NEST ‘Tidying up’ changes, for example to bring the rules into line with recent legislative changes such as the change to pension input periods
Although changes are being consulted on now, any approved changes will not come into force until April 2017.
The Rule change consultation runs until 21 March 2016.
The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2016 15 February 2016
Draft legislation has been published which confirms the earnings trigger and qualifying earnings band for automatic enrolment for 2016-17.
In December the Government published the news that after a review of the automatic enrolment earnings trigger and qualifying earnings band, they are to freeze thresholds at 2015-16 figures, apart from the qualifying earnings band upper level which will increase to £43,000.
The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2016 confirms that:
the lower level of qualifying earnings will remain at £5,824; the earnings trigger for automatic enrolment will remain at £10,000; and the upper level of qualifying earnings will increase from £42,385 to £43,000.
The Order also confirms the rounding figures to be used for pay reference periods.
1 week
2 weeks
4 weeks
1 month
3 months
6 months
£192
£384
£768
£833
£2,499
£4,998
£112
£224
£448
£486
£1,456
£2,912
£827
£1,654
£3,308
£3,583
£10,750
£21,500
This legislation is subject to parliamentary approval which we will publish when confirmed (usually in March).
CIPP Policy News Journal
25/04/2016, Page 343 of 453
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