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How NEST can be used
NEST works for small, medium and large organisations
NEST is flexible enough to be used as the sole scheme an organisation offers its workers or to work alongside existing schemes.
Your clients can use NEST in a variety of ways, for example:
- as a sole scheme for all the workers in an organisation, if there is no current pension provision in place
- for a particular group of workers alongside an existing scheme already in place for a different category of workers
- as an entry level scheme where there is an existing scheme that has a waiting period
- as a base scheme to ensure compliance with the new employer duties. They can use another scheme to pay in additional contributions above the NEST contribution cap.
NEST allows employers to choose whether they meet the minimum requirements of the new duties or contribute more to their worker’s retirement pots.They can also choose to base contributions on a definition of pay which fits with their existing processes.
Learn more about pension reform for employers
- Does NEST have to be the only scheme my client uses?
No. NEST can sit alongside existing schemes. Find out more
- Will my clients' workers find NEST confusing?
No. We're committed to speaking to people in a clear and easy to understand way.
Glossary
Visit the Glossary- Employer duties
The Pensions Act 2008 establishes new duties for UK employers that start to be introduced from 2012. These duties require employers to provide some or all of their workers with access to a workplace pension scheme that meets certain legal requirements. Employers will have to automatically enrol certain workers into a qualifying pension scheme and pay contributions on their behalf.
The duties will start to be introduced from 2012 and will apply to the largest employers first. Medium and smaller employers will be affected later.
- Qualifying pension scheme
A workplace pension scheme that meets certain minimum standards.