Due to recent changes made by the DWP to pension legislation, NEST subsequently evaluated their scheme rules. We issued a survey to members last month and would like to say thank you to those of you who took the time to respond. As a result of member responses the CIPP supports NEST’s proposals to amend the scheme rules as detailed in the consultation document. The full response can be viewed in the consultation section of the News area of our website.
NEST (National Employment Savings Trust) Rule change consultation - October 2012
WORK AND PENSIONS COMMITTEE – NEST RESTRICTIONS NEED LIFTING
11 February 2013
Renewed calls for action to be taken to lift restrictions sooner than 2017 have been made by the Work and Pensions Committee.
In its report, published 11 February, Lifting the restrictions on NEST the Work and Pensions Committee has reiterated its previous recommendations that the Government remove the cap on annual contributions to NEST (National Employment Savings Trust) along with the ban on transfers in and out of NEST and has urged the Government to introduce the necessary amending legislation as a matter of urgency.
Commenting on the Report, Dame Anne Begg MP, Chair of the Work and Pensions Select Committee, said:
“Since auto-enrolment began, the case for lifting the restrictions has become even more powerful, and the need for action more pressing.
“Employers want simplicity. They want to be able to choose one pension scheme to cover all their employees. The cap on annual contributions to NEST means that employers can’t opt for NEST for their higher-earners or if they want to make more generous contributions. So some employers are dismissing the NEST option and choosing a private pension provider who can offer a scheme for all their employees. “The Government has already made clear that it will need to “fix” the issue of transfers in and out of NEST if it wishes to implement its “pot follows member” solution to the current problem of small pension pots. This makes the case even stronger for lifting the restrictions now. “Auto-enrolment begins for medium and small employers from 2014. They will begin preparations a year to 18 months before then. Now is the time for action to be taken, it cannot wait until 2017.
“As the Minister himself recognised, we can’t wait to see if it goes wrong because by then it will be too late.”
The Work and Pensions Committee is appointed by the House of Commons to examine the expenditure, administration, and policy of the Department for Work and Pensions and its associated public bodies.
“The CIPP welcomes the committee’s recommendations which support the CIPP members’ views. The CIPP submitted its formal response at the end of January 2013.”
CIPP response to call for evidence
CIPP Policy News Journal
12/04/2013, Page 265 of 362
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