NEST contributions cap & transfer ban to be removed in 2017
The Government has confirmed that it intends to pass laws to remove the annual contributions limit and the restrictions on transfers into and out of NEST.
It carried out a consultation on the impact of the constraints earlier in the year. Now that it has had time to study all the responses, the Government has decided that the contributions limit should be removed from April 2017 to address concerns that NEST members might be disadvantaged by being unable to contribute more to their pension than the current annual contributions limit.
The ban on individual transfers will be removed to coincide with the introduction of automatic transfers of small defined contribution pension pots, and bulk transfers will be allowed from April 2017. The Department for Work & Pensions DWP will seek confirmation from the European Commission that removing these constraints is not inconsistent with state aid rules.
Read more about NEST on our website here.