National Employment Savings Trust (NEST)/ Group Pensions
There is a huge gap in what the UK population are saving into pensions and what they need to be saving for their retirement. NEST (and automatic enrolment) is the government’s solution to making people save more.
For the first time in UK history, employers will be required to automatically enrol eligible employees into a workplace pension scheme. The employer and employee will be required to pay into it. The dates for complying with this will be staged – beginning with the larger employers from 2012.
Employers will have to look at their existing pension schemes to ensure they meet the criteria or if they have no provision at all, set something up. It will be a criminal offence for employers if they wilfully fail to comply.
It may be better to set up a ‘private’ workplace pension, such as a Group Pension. There are a number of possible advantages to setting up one of these rather than joining the Government’s automatic enrolment pension.
There are many things which an employer is required to get up to speed with and comply with. So professional advice should be sought sooner rather than later.