Answering a question from Labour pensions spokesman Gregg McClymont, Webb said: "Labour introduced these restraints but the situation has moved on with unforeseen competitive developments in the market so we need to reflect on whether we should lift them." Under the current legislation, NEST members will have an annual contribution cap of £4,200 and transfers in and out of the scheme are banned - restrictions MPs have claimed will "nobble" the scheme ( PP Online, 9 December, 2011 ). But providers such as Danish provider NOW pensions and B&CE have launched offerings aimed at the same target market, potentially putting pressure on the government-backed scheme.
NEST NEWSLETTER
29 JANUARY 2012 The latest National Employment Savings Trust (NEST) newsletter is now available which features updates on staging dates, road shows, jargon busting and responsible investment news. Follow this link to read the January issue of NEST’s Newsletter .
FURTHER RECOMMENDATIONS TO REMOVE NEST RESTRICTIONS
15 March 2012 Further to our reports in January that the government were considering scrapping NEST restrictions, another report has been published recommending as a matter of urgency that the cap on savings and the ban on transfers be lifted. The Work and Pensions Select Committee have today published a report on Automatic enrolment in workplace pensions which recommends that, if state aid rules allow, the government should remove the following restrictions on NEST as a matter of urgency: · The cap on the annual contributions an individual can make to a NEST scheme. The Committee believes that this cap will result in severe complexity for businesses, as it would mean that employers with higher-paid employees could not use NEST as their single pension scheme. · The ban on individuals transferring existing pension pots into NEST. The Committee believes that this will be disruptive both for individuals who would like to consolidate separate pension pots into their NEST scheme, as well as for employers who would like to operate a single occupational pension scheme. The Government established NEST as a low-cost pension scheme to help deliver the auto- enrolment programme. However, the Committee believes that certain restrictions placed on NEST will create complexity for employers and will disadvantage some employees. The Chair of the Work and Pensions Committee, Dame Anne Begg MP, said: “By lifting these two key restrictions placed on NEST, the Government would remove barriers that might currently prevent employers from choosing NEST as their pension scheme, as well as making it easier for employees to bring together the other small pension pots they are likely to have. This will help reduce the multiple administrative charges that many people pay and help them to understand the total retirement savings they will have built up." There are also three other sections to the report:
CIPP Policy News Journal
09/10/2012, Page 168 of 234
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