Treasury agrees £330m guarantee for NEST authorisation

Needs to apply for authorisation

Kim Kaveh
clock • 2 min read

HM Treasury has agreed in principle to give NEST a £329m contingent liability guarantee in the event of the master trust's wind up or closure.

According to an announcement from the Department for Work and Pensions (DWP) yesterday (23 January), this is the amount which was estimated by NEST, and accepted by The Pensions Regulator (TPR). In order for the master trust to be able to operate, it will need to apply for authorisation by the end of March under the regulator's regime which came into force on 1 October last year. If there is no objection from MPs in the next 13 days to undertake the contingent liability, the DWP will be able to provide the required ‘letter of comfort' to assure TPR that NEST is sufficiently financiall...

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