NEST (National Employment Savings Trust) is a pension scheme designed to help employers meet their auto-enrolment pension duties.
Employers do not have to use NEST to comply but they do have to automatically enrol eligible employees into a qualifying pension scheme. NEST pensions are run by a non-departmental public body that operates at arm’s length from the Government and is accountable to Parliament through the Department for Work and Pensions (DWP).
In order to comply with the new pension reforms, employers will have to:
- Provide a qualifying pension scheme
- Automatically enrol eligible employees
- Pay employer contributions
- Tell all eligible employees that they have been automatically enrolled and that they have the right to opt out
- Register with the Pensions Regulator and provide details of their pension scheme and the number of people they have enrolled.
NEST pensions are designed to accommodate these requirements.