Details were announced this week of the proposed charging structure for the National Employee Savings Trust (NEST) due to be launched in 2012 to coincide with the requirement that all employers enrol all employees to a pension scheme and start making contributions to it (Click here for full details).

The proposals are that a 0.3% annual fund management charge will be levied in addition to a surprise 2% deduction against all contributions made. We reported recently that all but one of the companies in the running to manage the scheme dropped out leaving Tata as the last man standing. The Government has declined to pay for any of the start-up costs of the new scheme and has offered a loan which NEST will repay via this contribution levy. Once the loan has been repaid the additional charge will be reviewed.

Several industry commentators have been openly critical of imposing a charge which exceeds the current stakeholder charge cap against which private schemes are measured.

To find out how the legislation affects your business and what options you have  please get in touch.

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