Well, this is a surprise.
Only last week I heard Lord McFall of Alcluith make it very clear that their had been strong recommendations to the Government regarding removing some of the restrictions around the NEST pension scheme structure. Indeed, he went as far as saying that the Government had been urged ‘not to wait’ in the removal of any constraints.
This statement seemed entirely in line with other statements from politicans on this issue over the last few months.
Now changing the NEST structure at this time has some real implications for both employers and the industry. This is a subject I explored in an earlier post which you may want to read first: https://www.jelfgroup.com/blog/2012/03/proposed-nest-changes-but-is-it-fair/
Regardless of the reservations around this, I think those of us present at Lord McFall’s speech last week were expecting the next policy announcement in this area to be a clear statement of when the NEST restrictions would be removed. So I was somewhat surprised (understatement) to see a headline last Friday suggesting that the direction of travel on this decision has changed once again:
This helps.
The very last thing employers and the industry needed as Auto-Enrolment approaches was further uncertainty and change. At least all parties can now select a scheme (or schemes) for Auto-Enrolment purposes knowing the NEST parameters are unlikely to change in the short-term.
More on this one as it becomes known.
Best regards
Steve
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