Latest Information

National Employment Savings Trust

19/04/2011

The Government has announced new requirements that will mean employers in Great Britain must automatically enrol eligible employees in a pension scheme, in a bid to encourage all employees to save for their retirement.

This enrolment will take place over 4 years on a rolling basis - starting on 1 October 2012 - with larger employers being affected before smaller employers and newer businesses.

It is intended that by September 2016 all businesses will have joined the National Employment Savings Trust (NEST) Scheme.

All employees who earn over £7,745.00 a year will be automatically enrolled by their employer in the NEST scheme - unless there is an alternative pension scheme already provided by the business. However, employers are to be granted a three month period within which to enrol employees and therefore temporary employees (employed for a period of less than three months) are excluded.

As a result of these changes, over the coming years, employers will need to start to contemplate enrolling employees in the NEST scheme - or alternatively ensuring that a separate company scheme is in place.

Employers that breach this requirement will face compliance notices and penalties that vary according to the size of the business. Criminal penalties could also apply in the case of wilful failure to comply.

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