Nest has launched a consultation on proposed changes to the scheme’s rules, including contractual enrolment as a means of joining the scheme.
As proposed by the Department for Work and Pensions, the consultation looks to give the Nest trustee the ability allow contractual/consensual enrolment into Nest and to allow individuals to join the scheme via a bulk transfer with consent.
If this proposal is approved, the amendment will be in place from April 2018.
The consultation also looks to give Nest Corporation the power to close members’ pension accounts that have zero funds if certain conditions are met and to require Nest Corporation to carry out research with members, participating employers and representatives in connection with the operation, development or amendment of the scheme.
Nest has also proposed changes to the management of death benefits.
The consultation was launched today, 13 November, and will run until 29 December 2017.
Responses are welcome from: employers and representatives, legal advisers, pensions industry bodies and professionals, trustees, scheme managers and other interested stakeholder groups.
The full consultation on Nest’s rules can be found on Nest’s website, with addition information accessible from the DWP.
“We propose to make these changes, with the exception of the discretionary regime on death benefits, at the same time as the order changes, in April 2018. However we’ll build in flexibility as to when contractual/ consensual enrolment would come into effect. If we decide to go ahead with the rule change to introduce an ‘opt in’ discretionary regime on death benefits, this will be brought in at a later stage, probably towards the end of 2018,” Nest stated in its consultation document.
“In line with section 72 of the Pensions Act 2008 we’ll carefully consider your responses before deciding how we amend the NEST rules. We’ll publish a summary of respondents’ comments together with our response to them within three months of the end of the consultation period.”