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 www.nestpensions.org and other sites.
We can also put you in touch with an Independant Financial Advisor on request.