The DWP has announced that the Government will legislate to remove the annual contribution limit and transfer restrictions on the National Employment Savings Trust (NEST). This follows a recent confirmation that the European Commission will not oppose the move.
Draft legislation has been published for consultation and comments are sought by 29 October 2014. The intention is to remove both the annual contribution limit of £4,600 and the restriction on bulk transfers in and out of NEST with effect from 1 April 2017. The Government will retain the option to remove the individual transfer restrictions earlier, from 1 October 2015.
These changes are intended to put NEST on a more equal footing with other master trust providers in the same market, and also to enable NEST to be used as a transfer vehicle under the new pensions flexibility changes.
View the consultation paper and draft legislation.