NEST Corporation - the work-based pension scheme due to be introduced in 2012 - has launched the procurement process for its retirement income (annuity) panel.

The annuity panel will aim to make easier the process for members to get a good outcome when taking their money out of NEST.
 
NEST said members approaching retirement in the early years of the scheme are likely to have small retirement pots, which they will be able to take as cash.

However, some members may want to turn small retirement pots into retirement income, according to NEST Corporation, with products provided by the panel.
 
The annuity panel members will need to meet the criteria set by NEST, which includes being registered and authorised ac to provide retirement income products in the UK; providing quotes and products for pots of £1,500 and above; being able to communicate with NEST’s scheme administrator online so quotes can 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 providers.
Panel members will make money from the margins they build in to the retirement income product.

Enhanced and impaired life products will be also be made available through the NEST panel.