Posted on September 8th, 2014 | Categories - News
The Government has confirmed that it will look to remove restrictions on Nest (National Employment Savings Trust) by 2017.
At present the maximum annual contribution which an employee can make into Nest is capped at £4,500. Furthermore, transfers in and out of the scheme are not currently allowed.
In a written statement, Pensions Minister Steve Webb, has announce that a consultation on draft legislation with a view to lifting these restrictions. The aim is to lift the transfer restriction by October 2015 and remove the maximum annual contribution by 2017.
However, making the changes might not be straightforward as the original restrictions were put in place to prevent Nest, which received a multi-million pound loan from the Government when it was set up, falling foul of EU competition rules.
Many businesses, especially smaller firms who are only now reaching their Staging Date, have selected Nest as their chosen pension provider.
The changes will therefore to be welcomed, especially by higher earners, who may have been caught by the cap, as well as employees looking to consolidate their pension pots.