NEST

NEST

Using NEST for auto-enrolment

NEST is a pension scheme established under the authority of the Secretary of State under s 67 of the Pensions Act 2008 (PenA 2008) and the National Employment Savings Trust Order 2010, 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.

NEST is a registered pension scheme for the purposes of s 153 of the Finance Act 2004, providing benefits on a defined contributions basis, and must accept any employer wishing to join in order to meet its employer duties under PenA 2008 (known as its 'public service obligation'). Subject to certain conditions, self-employed persons and persons claiming pension entitlements under divorce settlements may also join the scheme. In addition, employers may request to join in advance of their employer duties applying.

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

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

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Pensions News

SPP publishes practical guide on CDC pension scheme implementation

The Society of Pension Professionals (SPP) has published a paper titled ‘From Concept to Practice: A practical guide to CDC pension schemes’, which examines the practical considerations involved in implementing Collective Defined Contribution (CDC) pension schemes within the UK pensions industry. The guide provides insights into administration, cost management and governance, with the aim of making CDC schemes accessible, resilient and trustworthy for employers and savers.

Pensions weekly highlights—15 January 2026

This week’s edition of Pensions weekly highlights includes a review of key news stories, as well as dates for your diary and trackers.

Pensions Schemes Bill makes progress at Lords Grand Committee Stage despite strong reservations on LGPS reforms

The House of Lords Grand Committee (Grand Committee) opened its detailed scrutiny of the Pension Schemes Bill on 12 January 2026. Day 1 of the Grand Committee’s examination began on Chapter 1 of the Bill on the Local Government Pension Scheme (LGPS) and in particular Clauses 1 (Asset pool companies) and 2 (Asset management). Ultimately, all amendments debated on 12 January were withdrawn, and Clauses 1 and 2 were agreed without change. However, the debate raised significant cross-party concern about the breadth of ministerial powers, the heavy reliance on delegated legislation, the protection of fiduciary duty and the extent of ministerial influence over pension investment. On 14 January 2026, the Grand Committee continued its focus on the provisions of Chapter 1 of the Pension Schemes Bill when it agreed Clauses 6 (Mergers of funds), 7 (Amendments of 2013 Act relating to scheme regulations) and 8 (Interpretation of Chapter 1). Again, agreement was reached despite extensive debate highlighting concerns over compulsory mergers, funding positions, contribution prudence and employer affordability, surplus management, transparency, and the impact of local government reorganisation. The government peers maintained that existing statutory, actuarial and governance frameworks are sufficient and that further changes should be considered through consultation rather than primary legislation. The Grand Committee is currently scheduled to sit again on 19, 22 and 26 January 2026 when further detailed examination of the Pension Schemes Bill will continue.

Pressure group urges the House of Lords to agree to retrospective pre-1997 pension increases

Law360: The Pensions Action Group (PAG) has called on members of the House of Lords to back reforms that would see arrears payments made to retirees previously denied inflation-linked pension increases.