How is the National Employment Savings Trust (NEST) different from a typical occupational pension scheme?
Produced in partnership with Julie Peaple of Nest Corporation and Michael Hames of Nest Corporation
How is the National Employment Savings Trust (NEST) different from a typical occupational pension scheme?

The following Pensions practice note produced in partnership with Julie Peaple of Nest Corporation and Michael Hames of Nest Corporation provides comprehensive and up to date legal information covering:

  • How is the National Employment Savings Trust (NEST) different from a typical occupational pension scheme?
  • Authorised master trust status
  • Joining NEST
  • Scheme membership
  • Relief at source
  • NEST Corporation’s public service obligation
  • Employer terms and conditions
  • Saving in NEST
  • Charges
  • Investment
  • More...

How is the National Employment Savings Trust (NEST) different from a typical occupational pension scheme?

In this Practice Note, references to the National Employment Savings Trust (NEST) Order are to the National Employment Savings Trust Order 2010, SI 2010/917 (NEST Order) applicable from 25 May 2018. References to the NEST Rules are to the Rules of the National Employment Savings Trust applicable from 9 September 2019.

NEST is a low charge, defined contribution occupational pension scheme, which was set up as part of the government’s workplace pension reforms. These reforms introduced a number of duties for employers (the ‘employer duties’) including a duty to enrol their eligible jobholders automatically into a pension scheme meeting certain standards (an ‘automatic enrolment scheme’). NEST was created to ensure that all employers would have access to a low-charge scheme which they could use to meet their new employer duties.

For further information on the automatic-enrolment obligations, see Practice Note: Auto-enrolment—the requirements.

Although NEST was established by legislation (section 67 of the Pensions Act 2008 (PenA 2008) and Article 3 of the NEST Order) rather than by the execution of a trust deed, PenA 2008 provides for the scheme to be treated as if established under an irrevocable trust. The Application of Pensions Legislation to the National Employment Savings Trust Corporation Regulations 2010, SI 2010/8, provide for relevant pensions legislation to apply to

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