The National Employment Savings Trust (NEST) has confirmed it will lift restrictions on trustees as part of its response to the consultation on planned scheme rule changes.
The consultation which ended on 21 March 2016 saw NEST ask for feedback on a number of updates it wanted to implement in light of the pension freedoms. NEST said it would proceed with all of its proposals bar the change which would allow members’ pots to remain open after they have taken all their money out.
This includes updates to the rules to allow lump sums and partial lump sums to be paid as benefits, in line with the pension freedoms introduced last April.
Also, the removal of the annual contribution limit and restrictions on bulk transfers, which come into effect in April 2017. NEST will amend its rules to reflect those changes, including a provision to allow trustees to accept bulk transfers.
It will also give the trustee the power to pay a partial uncrystallised funds pension lump sum (UFPLS) as single lump sum or a series of partial lump sum.
Another new rule allows members to continue to receive contributions after they have cashed out 100% of their pot.
The provider said it received six responses to the consultation, from the Trades Union Congress, Now Pensions, Mercer, the Institute and Faculty of Actuaries and NEST’s Members’ and Employers’ Panels.
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