NEST - National Employment Savings Trust
This is a new, simple, low-cost pension scheme which the details were set out in the Pension Act 2008 as part of workplace pension reforms.
It will provide new responsibilities for an employer to provide a pension for all employees. The legislation defines employees as either workers or jobholders and will have different rights depending on the category that the employee falls in.
It is aiming to have qualifying jobholders have a total of up to an 8% contribution between employee and employer. This will be staged in over a potential 4 year period ending in October 2016.
From October 2012 to October 2016 companies will start to stage the introduction of these pensions. The Employer and Employee contribution will be dependent on the size of the scheme, the date and when they join the scheme.
Employees can opt out of this pension, but will be auto-enrolled into the pension at beginning and every 3 years. However, it will be dependent on the employee pension available when the new pension is launched.
If you would like to find out how this new pension will affect you or your company please contact us and download a copy of the Mythbusters about the pension scheme.