“The position on bulk transfers is much the same. As huge numbers of employers gear-up to start to enrol their workers, we need NEST to focus on getting these people in to pension saving. Once this is achieved and the market is established, the restrictions on bulk transfers will be lifted.”
Helen Dean, Managing Director of Product and Operations at NEST, said:
‘We are pleased the Government has decided that from 2017 members and employers will be able to use NEST as they would any other pension, with no specific restrictions on the amount they can contribute or the ability to transfer in and out.
‘We welcome the certainty this announcement brings for employers and members. This means the restrictions will be lifted before minimum contributions rise to 5 per cent in 2017.
‘NEST continues to focus on our target market as we always have done. NEST will continue to work constructively to complement other pension providers and will remain available to provide a high quality low cost scheme for members in order that all employers can meet their duties under automatic enrolment.’ The CIPP also welcomes the move the remove the restrictions on NEST. Karen Thomson, Associate Director of Policy & Research comments “it is a relief to see the government applying common sense, and listening to the industry; not only employers but individuals too. When the CIPP policy team asked the CIPP members for their opinion in the Call for Evidence consultation it resulted in: More than 60% believe any changes should be introduced before 2018, with nearly 50% stating the sooner the better. 80% believe NEST should participate in an automatic transfer system; Nearly 89% believe NEST should have the same transfer rights as other pension providers; 65% believe bulk transfers should be facilitated; and Whilst many did not believe the cap to be a reason for not using NEST many believed it didn’t provide for a fair playing field.”
The government response to the call for evidence can be downloaded from GOV.UK
Automatic enrolment: What workers want to know
4 September 2013
How much will it cost me? What will I get back at the end? Who’s looking after my money? Have members of staff asked you any of these questions about automatic enrolment?
According to NEST (National Employment Savings Trust) these three questions are the most common ones that workers ask when they hear they will be automatically enrolled into a workplace pension scheme.
How much will it cost me?
What will I get back at the end? Who’s looking after my money?
NEST has produced a short video, ‘Three things to know about automatic enrolment’ , to help tackle these three core questions.
Members may find this a useful resource as it will help some staff to understand how pensions work in basic terms and it may help to reduce the number of questions you are asked when dealing with automatic enrolment.
CIPP Policy News Journal
16/04/2014, Page 457 of 519
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