What is NEST? The government is aware that some employers, particularly smaller ones, may not have access to pension schemes from the mainstream providers. To address this issue and ensure that all employers are able to meet their obligations, they have introduced the National Employment Savings Trust (NEST). NEST has a public service obligation which means that it has to accept any employer into the scheme. NEST is designed as a multi-employer pension scheme and offers a simple, low cost solution for employers looking to meet their obligations. The government has provided a loan for the NEST scheme to be set up. As a result NEST does have an initial 1.8% charge on the contributions to pay back its loan. This charge is temporary, but at present no end date has been set. Like other pension arrangements, NEST also charges an annual management charge, which is currently 0.3%pa. NEST does not offer employers specific support with the reforms and cannot give any advice. They have however tools and literature available online.
Step 8 Automatically enrol your staff By your staging date you will need to formally assess your employees and identify which members need to be automatically enrolled and which have a right to ‘opt-in’. If you have postponed your staging date you may not have to automatically enrol these people straight away, but potentially you will still need to complete an assessment. You may also still need to send information to your pension provider, even if you are not enrolling employees straight away. Your payroll or pension provider’s software may help manage this. You will also need to make sure that you submit your pension payments in time. Step 9 Communicate with your employees Automatic enrolment regulations require that specific information is sent to your employees within certain time limits. This means that your employees will know how automatic enrolment will affect them and what options they have. There are many templates available for you to use. The Pensions Regulator has some available on their website. Your payroll or pension provider’s software may also be able to provide support with the communications process.
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