The DWP has launched a consultation on draft legal rules designed to lift the restrictions on Nest.
Last month the European Commission confirmed lifting the restrictions on Nest – which currently put a cap on annual contributions and ban transfers in and out of the scheme – would not break state aid rules.
The Government plans to remove the restrictions on individual transfers by the end of 2015 and the contribution limits by 2017.
Money Marketing previously revealed how the pensions minister Steve Webb feared a judicial review led by providers if the restrictions were lifted earlier.
Webb says: “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.”
The consultation closes on 29 October 2014.