The National Employment Savings Trust (Nest) has started the procurement of its retirement income panel.
The panel aims to simplify the process for members to get a good outcome when they take their money out of Nest. Retirement income providers will be able to apply to be a panel member and will need to meet selection criteria set out by Nest.
These criteria is likely to include that the providers are registered and authorised to provide retirement income products in the UK, and are committed to meeting Nest’s business requirements including providing quotes and products for pots of £1,500 and above, being able to communicate with Nest’s scheme administrator online to enable quotes to be provided in real time, and committing to transfer data securely.
Nest will not pay providers for being on the panel and will not receive any form of payment from the panelists for retirement income products sold through the panel.
Nest will use a concession contract approach which means panelists will be given the opportunity to provide quotations, and if selected by the member, provide for the member to buy a retirement income.
Panelists will make money from the margins they build in to the retirement income product in the same way insurance companies do so on the open market for retirement income products.
The number of panel members is unrestricted.
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