RegulationJul 17 2013

Nest contribution limits change

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Commitments have been made to legislate as soon as possible to lift other constraints, put in place to ensure Nest focuses on low to moderate earners and smaller employers, from April 2017.

* In the window between the end of roll out in March 2017 and before the automatic enrolment minimum contributions rise to 5 per cent in October 2017 the annual contribution limit should be lifted. The government will legislate as soon as possible to remove the contribution limit from April 2017.

* The government considers the right time to lift the restrictions on transfers is alongside the introduction of an automatic transfers solution. Removing the restrictions on transfers at this time will allow individuals to choose to consolidate any pension pot, even those with a value over £10,000.

* Nest will be able to support those few employers who may wish to undertake a transfer without it distracting from its ability to perform its core task. The government considers it appropriate – in line with the decision on the annual contribution limit – to legislate as soon as possible to give employers certainty and enable bulk transfers to take place from 2017.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/211063/nest-automatic-enrolment-call-for-evidence-response.pdf