Using the National Employment Savings Trust (NEST) for auto-enrolment
Produced in partnership with Wyn Derbyshire of gunnercooke LLP
Using the National Employment Savings Trust (NEST) for auto-enrolment

The following Pensions practice note produced in partnership with Wyn Derbyshire of gunnercooke LLP provides comprehensive and up to date legal information covering:

  • Using the National Employment Savings Trust (NEST) for auto-enrolment
  • What is NEST?
  • Nature of NEST
  • Governance of NEST
  • Participation by employers
  • Contributions
  • Transfers
  • Investments
  • Benefit structure
  • Retirement benefits
  • More...

Using the National Employment Savings Trust (NEST) for auto-enrolment

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.

What is NEST?

NEST is a pension scheme established under the authority of the Secretary of State under section 67 of the Pensions Act 2008 (PenA 2008) and the NEST Order, SI 2010/917, as a vehicle that employers may utilise in order to meet their auto-enrolment obligations. NEST was created specifically to ensure that smaller companies and low-to-moderate earners have access to quality pension provision.

This Practice Note sets out the key aspects of NEST.

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

An employer may prefer to use NEST to meet their auto-enrolment obligations:

  1. to reduce the administrative burden (as an employer would generally just need to enrol employees and pay contributions)

  2. as a single scheme solution to auto-enrolment with greater simplicity and less administrative cost (particularly for smaller employers)

  3. where they operate in an industry that has a high turnover of workers (so as to smooth the process when employees move jobs, as any employer can contribute to NEST)

  4. where an employee has more

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