Between now and 2018, every employer in the UK will have to offer their staff a workplace pension scheme. They’ll have to set up a pension scheme that meets certain minimum standards, automatically enrol some or all of their workers and pay contributions on their behalf.
NEST was set up by the Government to make sure that every employer will have access to a scheme that meets the requirements of the new pension rules, whatever the size of their business. This means that when you need to set up a workplace pension, you’ll know that NEST is here and ready to help.
Over 20,000 employers of all sizes and from all sectors are already using NEST to meet their new duties
At NEST, we’ve worked hard to make setting up a workplace pension quick and straightforward. We’re run as a trust with a legal duty to do the best for our members, and this includes making things easier for employers.
NEST’s online processes make it as simple as possible to manage all the day-to-day tasks involved with pensions. We’ve designed tools to simplify technical tasks, including pre-set enrolment types and electronic member opt-outs.
NEST is free for you to use and has low charges for members. You pay nothing to start using NEST and there are no charges for ongoing administration.
It’s a great choice for your workers, too. The way we look after their money is designed to provide more certainty over what they’ll get in the end. Our NEST Retirement Date Funds use a sophisticated approach of the sort generally only available in expensive corporate schemes that’s tailored for the year each member is planning to retire. And our simple, good value charging scheme is the same for everyone.
Over 20,000 employers of all sizes and from all sectors are already using NEST to meet their new duties. Having worked with so many employers, we’ve learned a lot about the sorts of things they need to be on the lookout for when getting ready.
Know your staging date and start planning
Your staging date is the date that you need to start enrolling your workers into a workplace pension scheme. It’s based on the number of workers in your organisation – the more workers you have, the sooner your staging date.
If you don’t already know your staging date, find out now. You can find out from The Pensions Regulator.
Now is the time to take a look at whatever pension provision you already have to see if it meets the standards set by auto-enrolment. Because NEST was set up especially for auto-enrolment it meets – or exceeds – all of these standards.
It’s worth thinking about paying more, though, as an incentive to keep good staff. NEST’s online functionality makes it straightforward to increase contributions to your workers at any time
It’s also a good time to contact your payroll provider to check that they can support auto-enrolment. NEST has been designed to work with any payroll software.
Decide your contributions
The minimum contribution is currently 2 per cent of the worker’s pay. Employers have to pay at least 1 per cent of this with the rest coming from the workers’ pay and tax relief. The minimum contribution will rise in stages to 8 per cent by 2018, of which employers will have to pay 3 per cent.
It’s worth thinking about paying more, though, as an incentive to keep good staff. NEST’s online functionality makes it straightforward to increase contributions to your workers at any time. Members can also manage extra contributions to their retirement pots on their own behalf so you won’t have to manage extra contributions for them.
Get all your information in order
Before you set up your scheme, you’ll need to collect and check key information about your organisation, bank account details for paying contributions, and facts and figures about individual workers. Making sure you’ve got all this up to date and close at hand will make it much easier to get set up.
NEST has produced a useful form that you can use to gather this information in one place to make the sign up process as easy as possible.
Set up processes for day-to-day management
Remember, that a workplace pension isn’t a ‘set and forget’ task. You’ll have to make sure that you’ve got processes in place to keep up with your responsibility to automatically enrol new workers and pay regular contributions.
If you’re concerned about the amount of time it might take you to look after a pension scheme, then NEST makes it easy to get help. Accountants, payroll providers and financial advisers using NEST Connect can take over some or all the tasks involved with setting up and using NEST. Ask your service providers if they’ve signed up for NEST Connect.
The thousands of employers that are already using NEST feel good about their workplace pension. It’s quick and straightforward to set up, free to use and is good for their staff. Find out how you can join them.