The Department for Work and Pensions has today published draft laws that will remove the annual contribution limit and transfer restrictions on pensions schemes held with the National Employment Savings Trust (NEST) by April 2017.
It is hoped the change will help people who work for the more than 8,900 employers that administer their auto-enrolment schemes through NEST to save more for their retirement than the current £4,600 a year cap allows.
Under the plans, these workers would also gain the same transfer rights as members of other schemes, allowing them to consolidate their savings.
The government now intends to lay legislation before parliament in the New Year, following the consultation, which closes on October 29. This comes after a year of negotiations with the European Commission to get the approval required for the changes.
Publishing the details, pensions minister Steve Webb said: 'NEST has been a force for good in pensions, helping to ensure the successful introduction of the government's automatic enrolment policy and bringing millions more people into pension saving.
'While these constraints were essential as we got auto-enrolment up and running, their removal will ensure that in future people saving with NEST get the same rights as members in other schemes and can make the most of their savings.
'Removing the contribution limit will help people save more, while lifting the ban on transfers will help people to build up worthwhile pension pots in one place and get better value for their savings.'
