Other Citywire websites
Stay connected:

View the article online at http://citywire.co.uk/new-model-adviser/article/a655307

Nest calls for scrapping of transfer ban and contribution limit

by Daniel Grote on Feb 01, 2013 at 08:47

Nest calls for scrapping of transfer ban and contribution limit

The National Employment Savings Trust (Nest) has called for the limit on contributions into its scheme and the ban on transfers in and out to be scrapped.

In its submission to the government's consultation on a lifting of the restrictions, Nest said that removing them would remove an administrative burden for employers and allow more freedom for Nest savers.

'Nest's restrictions complicate the decision-making process of medium-sized employers, many of whom will experience a private pensions sector already busy supporting other clients and who will therefore look to Nest as a potential provider,' said Nest chief executive Tim Jones (pictured).

'Removing the restrictions will help us help those employers to get the job done.'

Nest's contribution limit is set at £4,400 for 2012/13, and is set to be adjusted annually in line with average earnings.

Pensions minister Steve Webb has consistently argued that legal barriers could stand in the way of lifting the restrictions on Nest. He has claimed the move could contravene European Union laws, and argued it could open up the government to legal challenges from providers. Giving evidence to parliament's Work and Pensions Committee last month he said the government would need to prove the pensions market was failing as a result of Nest operating with the restrictions if they were to be lifted.

However, Labour has dismissed Webb's concerns, accusing him of dragging his feet over the issue

2 comments so far. Why not have your say?

Sam De Zoysa

Feb 01, 2013 at 09:07

'Removing the restrictions will help us help those employers to get the job done.'

Er, no I'm quite capable as are I imagine the majority of advisers with corporate clients of advising businesses what is in their and their employees best interests.

report this

Andy Stowers

Feb 01, 2013 at 09:49

Removing the restrictions will help but while NEST has an initial charge of 1.8% it is difficult to see how an adviser can compliantly recommend them

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Opportunities emerge as production moves back home

As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

A spotlight on Alastair Mundy

Alastair Mundy met Citywire's Daniel Grote at the London Stock Exchange Studios for a detailed interview about the Investec Cautious Managed fund.

Sorry, this link is not
quite ready yet