Changes to NEST
NEST is the National Employment Savings Trust. It’s a pension scheme set up by the Government, but run independently from it.
The National Employment Savings Trust (NEST) was set up by Government as one option for employers to use, in order to comply with automatic enrolment. Although it was set up by the Government, NEST is run completely independently from it.
NEST initially had some restrictions placed upon it. It was:
- not able to accept transfers in from other pension schemes;
- not able to pay transfers out to other pension scheme; and
- not able to accept contributions of more than £4,600 a year (2014/15). This includes both employer and the member contributions.
These restrictions were limiting and could sometimes deter employers from using NEST for automatically enrolling their eligible workers.
Following a government consultation, these restrictions were removed with effect from April 2017.
Where can I find out more?
If you need more information, please contact us. A pension specialist from our team will be happy to help with whatever pensions-related question you have. Our help is always free.