On November 16, 2023, the NEST Corporation launched a consultation on two proposed amendments to the National Employment Savings Trust (NEST) scheme rules. These are:
- Grant of representation threshold. To amend the death benefit rule to replace the £5,000 "grant of representation threshold" with such amount determined by the trustee from time to time. The grant of representation threshold applies where there is no member nomination or expression of wish form, or where the nominated beneficiaries have pre-deceased the member or are untraceable. The amendment is intended to allow the trustee to set the threshold at what it considers an appropriate amount without recourse to a full rule change. The same threshold will be applied to all members.
- Deductions from members' accounts. To expressly provide for additional circumstances in which deductions required by law can be made from members' accounts. The rules currently make express provision for amounts to be deducted where there has been an error. NEST proposes to amend the rules to expressly include any deductions the trustee is required to make in relation to a void transaction, the insolvency of an employer, or in compliance with a court order or rules of a government or regulatory body. The rule change is to ensure that there is a clear basis on which the trustee can act.
The consultation closes on January 16, 2024.
