Automatic enrolment in workplace pensions and National Employment Savings Trust

Inquiry status: Inquiry concluded, Report and Government Response published.

The Work and Pensions Committee inquire into automatic enrolment in workplace pensions and the National Employment Savings Trust (NEST).

Under the Pensions Act 2008, plans were put in place to reform workplace pensions. The changes will be introduced from October 2012 and will mean that every employer will be required to automatically enrol their workers into a qualifying pension scheme if they are not already enrolled in one (“auto-enrolment”), and to contribute to their pension. This will include all workers who: are at least 22; have not yet reached state pension age; and earn more than the minimum earnings threshold (likely to be £7,475 a year).
A new pension scheme called the National Employment Savings Trust (NEST) has been established by the Government to provide a simple, low-cost pension scheme. NEST is open to all employers. Employers will also be able to use an existing pension scheme (if it qualifies or its criteria are amended to meet the qualifying criteria); or set up a new scheme; or use a combination of these options. Employers will be required to register with The Pensions Regulator, which will oversee the implementation of auto-enrolment.

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