NEST – And why employers need to know about this.

NEST is a new initiative by the government to increase the number of people contributing to a pension scheme.  It has been decided that the best way forward is to use Automatic Enrollment.  This takes the decision from the employee and puts the onus on the employer instead.

The scheme starts from October 2012, with the largest firms; but will eventually filter through to the smallest.  Employers should be aware that there will be financial penalties for non compliance.

As an employer you will be expected to enroll all eligible employees into a qualifying pension scheme, manage employee contributions and also make an employer contribution to the scheme.

Eligible employees are:

  • Aged between 22 to State Pension Age
  • Earning more than the personal tax allowance
  • Aren’t already registered with a qualifying pension scheme.

When it applies:

The Pensions Regulator will write to employers to inform them of their staging date. (The start date is referred to as your staging date)

You will usually get 12 months notice prior to the staging date, unless your business is very large, in which case more notice is given.

As this is a complicated issue and subject to change during implementation, further information can be obtained from and other sites. 

We can also put you in touch with an Independant Financial Advisor on request.



Pensions Law is Changing 2012

According to the BBC this week, number of people actively contributing to private company pensions schemes has halved since 1991.

This drop is largely due to the impact of the recession, which has hit households quite hard.

It is no surprise that the government has taken steps to counteract this decline, with the introduction of changes to the pension law from 2012. 

This will affect all employers with at least one worker in the uk.  So if you are running a business, even a one-man enterprise, as long as you draw a salary, it will affect your business !

Briefly, employers will need to :

  • Automatically enroll certain workers into a pension scheme.
  • Make contributions on their workers behalf.
  • Register with The Pensions Regulator
  • Provide workers with information about the changes, such as how it will affect them.

The changes will be introduced in stages over 4 years starting in 2012.

Please contact us if you would like to know more and we can put you in touch with an Independant Financial Advisor.  Tel: 01225 751302.