Government papers: Government response to the consultation on the draft NEST (Amendment) Order 2018

The government has confirmed that the proposed amendments to the National Employment Savings Trust (NEST) Order achieve the policy aim of facilitating the effective operation of the NEST pension scheme.

The consultation sought views on proposals to improve the NEST pension scheme for the benefit of employers and members. The changes include: allowing participating employers to contractually enrol their employees into NEST; clarifying that individuals may join NEST in the event of a ‘bulk transfer with consent’; giving NEST the ability to close members’ pension accounts that have zero funds; and requiring NEST to carry out research, in connection with the operation, development or amendment of the scheme.

It was found that the changes will help employers when selecting a suitable automatic enrolment pension scheme and will have a limited and proportionate effect on how NEST can operate in the market.