National Employment Savings Trust (NEST)

NEST is one of the pension schemes employers will be able to choose to meet their new legal duties. It is planned that NEST will launch in spring 2011.

For the first time employers will have to enrol some of their workers into a pension scheme that meets certain legal standards. Some of these workers will be automatically enrolled into this scheme and others only if they ask to be enrolled. Workers will be eligible to be automatically enrolled into their employer’s scheme if they:

  • are aged at least 22 but are not yet State Pension Age and
  • work or ordinarily work in Great Britain or Northern Ireland and
  • earn more than £7,475 a year.

These people are known as eligible jobholders and their employer will have to make a minimum contribution into that pension scheme on their behalf. Workers who are automatically enrolled into a scheme can choose to opt out if they want to.

Starting from 2012 other individuals will have the right to be enrolled into their employer’s pension scheme if they are:

  • Aged at least 16 but not yet 22 and have earnings of more than £5,720 a year. If these individuals ask to be enrolled their employer will have to make a minimum contribution
  • Aged at least State Pension Age but under 75 and have earnings of more than £5,720 a year. If these individuals ask to be enrolled their employer will have to make a minimum contribution
  • Aged at least 22 but not yet State Pension Age and have earnings between £5,720 and £7,336. If these individuals ask to be enrolled their employer will have to make a minimum contribution
  • Aged at least 16 but under 75 and have earnings that are less than £5,720. If these individuals ask to be enrolled their employer will not have to make a minimum contribution, but can choose to do so.

There is an alternative to NEST for Employees and Employers so it is vital you speak to us to discuss your options first.