Nest’s trustee board will have the power to retain a contribution charge after the Government’s set-up loan has been repaid.
Responding to a question from Money Marketing at a Nest briefing last week, Nest managing director of scheme development Helen Dean outlined the extent of the trustees’ powers.
She said that, while it remains an “aspiration over time” to remove the contribution charge, the trustees would be able to do “whatever they deem necessary” to protect member interests. This could include adjusting the 0.3 per cent annual management charge or amending the 1.8 per cent contribution charge.
She said: “It is our aspiration, over time, to remove the charge but the trustees will decide based on the circumstances at the time.”
Dean said that, theoretically, the trustees could remove the charge and then bring it back at a later date. She added: “It is difficult to anticipate what trustees will do in the interests of members at a given period.”