The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
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Upcoming changes to NEST service 10 March 2017
NEST is making some improvements to their service in March 2017. Some of these changes are to improve the efficiency of how their processes work behind the scenes. Others are to make NEST easier for you to use.
Moving your money From April 2017 you’ll be able to transfer money into NEST from a UK based-pension scheme that’s registered with HMRC. NEST will only be able to accept certain types of transfer payments.
From April 2017, you’ll also have the option to transfer your pot to another registered pension scheme even if you are under the age of 55. You can find out how to transfer money in or out of NEST in the member help centre.
Removal of Annual contribution limit The annual contribution limit (ACL) is the maximum amount that can be contributed to any member’s NEST retirement pot in a tax year. This limit is being removed from 1 April 2017. Until then, the current annual contribution limit still stands at £4,900 for the 2016/17 tax year. Improvements to the member help centre NEST is listening to your feedback and they continue to make improvements to their help centre to make it more useful. For example, they have added new information under ‘changes in my circumstances’ and ‘logging into my account’ sections. Some new screenshots have also been added into the article to make it easier to follow.
For full details, go to Upcoming changes to NEST service .
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Automatic enrolment minimum contribution increases 13 March 2017
By law, minimum pension contributions are required to increase in two phases from 6 April 2018 and then again in April 2019.
All employers will need to work out how these change will apply to them and their staff, and what they need to do to make sure they are ready.
Find out what your client needs to do and how you can support them.
The Pensions Regulator has provided an article on the minimum increases due in 2018 and 2019.
“By law, on 6 April 2018, all employers are required to increase their contributions into their staff's automatic enrolment pension to at least of 2%. Staff contributions will also increase so that their contributions make up the shortfall needed to bring the total minimum contribution up to 5%.
Contribution levels will rise again on 6 April 2019, with your client paying a minimum of 3% towards the pension, and the total minimum contribution reaching 8% - with staff making up the 5% difference.
The table below shows the minimum contributions employers who set up a defined contribution scheme for automatic enrolment must pay, and the date when they must increase. This is calculated based on earnings between £5,824 to £43,000 per year (£486 to £3,583 per month, or £112 to £827 per week), and including certain elements of pay.
Employer minimum contribution
Total minimum contribution
Date effective
Staff contribution
Until 5 April 2018
1%
1%
2%
6 April 2018 to 5 April 2019 2%
3%
5%
6 April 2019 onwards
3%
5%
8%
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
Page 492 of 588
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