13 December 2011 NEST today announced a number of developments to help deliver on its commitment to act as a responsible owner of assets on behalf of NEST members. Read the full press release from NEST
GOVERNMENT URGED TO RECONSIDER NEST RESTRICTIONS
21 December 2011 The current annual contributions limit of £4,200 and the rules that state no transfers are allowed in or out of NEST are being questioned by MPs. Professional Pensions reports: The restrictions on the National Employment Savings Trust may no longer be appropriate, two of its chief officers told MPs. NEST has an annual contributions limit of £4,200 (rising to £4,400 for 2012/2013) per person, and a ban on transfers in and out of the vehicle. Last week, MPs asked how NEST could compete with other private sector providers given the disadvantage these restrictions presented. Today Tim Jones, chief executive of NEST Corp, and Lawrence Churchill, chairman of NEST, suggested it may be time for the government to reconsider NEST's limitations or risk private sector providers undercutting the government vehicle. Giving evidence to the Work and Pensions Committee, Churchill said: "A lot has changed since the restrictions were put in place in 2007. Who would have thought then that we would be partnering with pension providers?" The restrictions are due to be reviewed in 2017, but because the government has given small businesses an extra year to prepare for auto-enrolment, some industry voices are calling for the review to be pushed back to 2019. Others have said the restrictions should be removed now because private sector providers such as NOW: Pensions have entered the market. Churchill added: "It is difficult to see how the restrictions are in members' interests. Everyone has agreed the restrictions should go, but it is a question of timing." Jones (pictured) said the restrictions helped NEST to create a product designed for its target market, which was primarily people working for small employers who had no pension provision. However, he added the ban on transfers into NEST makes the vehicle unattractive to large employers with low-paid workers looking to consolidate their pension provision, which was counterproductive. "It may be appropriate to look again at the restrictions," Jones said
BLUESKY ALL EMPLOYER SCHEME LAUNCHED TO RIVAL NEST
21 December 2011 BlueSky Pension Scheme has launched an all-employer scheme to rival the National Employment Saving Trust, ahead of auto-enrolment’s roll out next year.
CIPP Policy News Journal
09/10/2012, Page 166 of 234
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