Auto-enrolment: The facts about NEST
New workplace pension regulations come into force in October, heralding the most significant changes to the pension sector in many years. Dave Gleeson, financial planning consultant at Chiks, discusses the NEST scheme.
NEST – National Employment Savings Trust – is a new government-backed pension scheme that enables employers to meet their obligations under auto enrolment legislation.
The scheme can be used on its own or in addition to a current scheme, allowing employers to make contributions in a number of ways to suit their needs.
Employees using NEST have one retirement pot which they keep during their working life and can continue paying into it whether they switch jobs, stop working, or become self-employed.
NEST means there are no ongoing administration commitments for employers if a NEST employee leaves. Unlike other schemes that qualify under the auto enrolment rules, NEST is obliged to accept all employers who want to use it to meet their new statutory duties.
It uses plain English to help people understand pensions. NEST is run on a not-for-profit basis and has a number of legal duties, which include acting in members’ interests.
For further information, visit: www.nestpensions.org.uk.
If you would like more information on auto enrolment pensions, please contact Dave Gleeson on 01772 821021.