The government plans to legislate for the lifting of NEST's contribution cap and transfer restrictions in 2017.
NEST today welcomed the move, saying it provided certainty for employers and members.
However Aegon has previously said that restrictions placed on NEST are there to protect savers from poor retirement outcomes and should not be scrapped.
The provider said lifting the ban on transfers in and out of the scheme, and scrapping the maximum contribution limits would be a mistake and could result in the wrong kind of pension savers using NEST.
Minister for pensions Steve Webb said in a ministerial statement today that the government would legislate as soon as possible for the removal of the restrictions on NEST.
The move follows a government call for evidence on the restrictions.
Removing the cap on contributions by April 2017 means that the cap will be gone before minimum contributions phase up from their current level.
NEST managing director of product and operations Helen Dean said: "We are pleased the government has decided that from 2017 members and employers will be able to use NEST as they would any other pension, with no specific restrictions on the amount they can contribute or the ability to transfer in and out.
"We welcome the certainty this announcement brings for employers and members. This means the restrictions will be lifted before minimum contributions rise to 5% in 2017."
Dean said NEST continues to focus on its target market and will continue to work constructively to complement other pension providers.
"We will remain available to provide a high quality low cost scheme for members in order that all employers can meet their duties under automatic enrolment," she said.
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