NESTQuick: A Simple Guide

A summary of the latest proposals is available in PDF format here.

The Pensions Act 2008 introduced the concepts of ‘auto-enrolment’ of ‘eligible employees’ to a ‘qualifying pension scheme’ to make and receive minimum levels of employer and employee pension contributions based on ‘qualifying earnings’. This is all to be phased in from 2012.
So what does this mean?

  • Employers already operating an employee pension scheme can adapt this to meet the new requirements
  • Alternatively they can continue with this and offer access to the National Employment Savings Trust (NEST) to those employees not eligible for the existing scheme
  • Employers could close their existing arrangements and opt-into NEST
  • Employers not yet offering an employee pension scheme must either establish one or arrange to auto-enrol all of their eligible employees into NEST and start to make contributions

Your own strategy will be determined by a number of factors which may include:

  • Is your pensions provision considered to be an employee retention and recruitment tool – a differentiator for your business?
  • Is your current provision more generous or in anyway superior to NEST but not affordable to make available to all employees on the terms required by Pensions Reform?
  • What advice and resources do you have to design, communicate, implement and administer the scheme(s)?
  • Will access to NEST be sufficient for your purposes?

A summary of the latest proposals is available in PDF format here.

We still await the formal regulations but do know when each employer will be expected to comply.

How can EBS help?

  • We keep a close eye on developments and have access to some of the key minds shaping the legislation –we summarise what you need to know on our Blog (see ‘Hot Topics’ to access the archive).
  • We will sit down with you, explain the requirements and how your current strategy might need to evolve to meet them and discuss your own future plans. This initial meeting is conducted at our expense.
  • We can design and implement a highly-effective communication strategy for your employees which keeps them informed of the changes and how they can benefit.
  • We can act as a ‘shock-absorber’ for you, taking on the majority of extra administration necessary to meet the new requirements – allowing you to remain focused on your core business activities.

    • To find out more, please Contact Us.