Nest consults on changes to scheme rules

Amendments will cover death benefits and deductions from member accounts

Jonathan Stapleton
clock • 1 min read
Brendan McCafferty is chair of NEST
Image:

Brendan McCafferty is chair of NEST

Nest has gone out to consultation on proposals to changes to its scheme rules.

The government-backed master trust said the changes would cover two technical items pertaining to its rules.

The first of these changes would amend rule 18 on death benefits to allow the Nest trustees to determine the value above which Nest will pay a death benefit to the member's estate, in the event that there is no nomination form, expression of wish or similar - a situation which would usually require a grant of representation to be obtained.

Nest's second change is to rule 11.2 covering pension accounts, general account and excess contributions account and will expressly provide a corresponding power to make deductions from members' accounts in circumstances where Nest is legally required to do so.

The consultation document can be found on Nest's website. The consultation runs from 16 November 2023 to 16 January 2024.

Nest was established by a piece of legislation known as an order - with the so-called Nest order being its equivalent of a trust deed for trust-based schemes.

Article 15 of the Nest order gives Nest Corporation, the trustee of Nest, the power to make, cancel, change or re-introduce any rules made by it or the Secretary of State after consultation with its members' and employers' panel.

Nest said both its members' and employers' panel had been advised of these proposed rule changes and would be formally consulted during this public consultation.

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