Nest's response to rule change consultation published

NEST has today published its response to the consultation launched November last year about proposed changes to the NEST Rules. The response confirms which changes the organisation plans to make to improve the effectiveness of its pension scheme for employers and members.

The organisation will proceed with the changes outlined in the consultation from 6 April 2018, with the exception of the proposal to apply discretion on benefits paid out following the death of a member - NEST is aiming to introduce an appropriate rule change in this area next year, following further analysis of the options. 

The new changes being introduced include allowing for contractual enrolment into NEST - which will put NEST on a level playing field with other occupational pension schemes - and giving the Trustee the ability to cease the participation of ‘dormant’ employers who have not contributed to NEST for a specified period of time, by giving notice to the employers.

Although these rule changes will come into effect from 6 April, NEST will be offering contractual enrolment from 25 May when the organisation’s Employer Terms and Conditions are updated. 

Ends

Notes to editors

• NEST’s consultation response can be viewed on the organisation’s website.
• NEST’s governing documentation comprises the NEST order and NEST rules. The NEST order sets out NEST’s legal structure, and gives the Trustee a number of powers, while the scheme rules provide further powers and more detail about how NEST works in practice.