The trustees of the National Employment Savings Trust should take legal action against the government's decision not to remove contribution limits to the vehicle, shadow pensions minister Gregg McClymont has said.
Contributions to NEST are subject to a limit of £4,400 per year. Despite pressure from the industry and from the Department for Work and Pensions select committee to remove the limit, the government has refused to consider doing so until 2017. McClymont (pictured) said the trustees of NEST should challenge the government's stance on the limits, claiming the restrictions could damage savers' investments. "There are strong grounds for the independent trustees of NEST obtaining their own legal advice," said the MP. "The restrictions on NEST reduce the economies of scale it can achieve...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
