National Employment Savings Trust (NEST) /personal account
Company pension laws- Auto Enrolment/NEST
Auto enrolment and Nest are being phased in over the coming years to mean compulsary employer contributions, auto enrolment of employees, and that pension plans will need a default fund. Company pension reform means rules are changing about how employers must run their occupational pension scheme.
Essentially the Government is shifting the responsibility for pensions from public funds to the private sector. Company pension plans will need to meet many new criteria. Penalties and fines will be the result of non-compliance and monitoring will be more stringent than it has been in the past. Your company will need a pension!
The National Employment Savings Trust (NEST) is a new low-cost pension scheme backed by the Government, which is meant to be introduced in 2017. The NEST used to be known as the Personal Account. NEST is part of the Government’s plans to improved occupational pensions. The other main component of the reforms is auto-enrolment, which requires employers to automatically enrol their employees into a pension scheme. NEST has been developed to offer low to middle earners a low cost saving mechanism for their pension.