FROM JULY 2017 WE WILL BE AUTOMATICALLY ENROLLING EMPLOYEES INTO NEST.
As you may be aware, Workplace Pensions Law has changed, which means we need to enrol you into a workplace pension scheme that meets new legal standards. Soon we will be automatically enrolling you into NEST.
We’ve chosen NEST as our Workplace Pension Scheme to meet our employer duties and help you put money aside for your retirement.
NEST is a straightforward pension scheme that gives you one retirement pot for life. You’ll get contributions into your retirement pot from us and extra money from the government through basic rate tax relief, as long as you’re making contributions too. It is also portable so you can move your pension pot to other employers and umbrella companies who also use NEST and continue your contributions.
If we don’t have your National Insurance number though, NEST may not be able to claim the basic rate tax relief on your behalf, so please make sure you’ve given it to us so you don’t miss out on any extra money.
At the moment basic rate tax relief is 20%. This means that for every £1 of your contribution you could get 20p paid by the government. This means you’ll only need to pay 80p in every pound.
You’ll be automatically enrolled into NEST on 1 September 2013. If you want to stay in the scheme you don’t have to do anything.
CONTRIBUTING TO YOUR NEST RETIREMENT POT
We will make employer contributions to your retirement pot and you will pay member contributions. Minimum contributions increased from 2017 and will increase from April 2018 and April 2019 respectively, in line with pensions legislation. If you are eligible, you will also receive extra money from the government through tax relief. This is paid at the basic rate, which at the moment is 20%. This will be paid on the contributions you make and will go directly into your retirement pot once NEST has claimed it from the government.
| Our employer contribution | Your contribution | Tax relief |
|---|---|---|
| To 5th April 2018 2% | 0.8% | 0.2% |
| To 6th April 2018 3% | 2.4% | 0.6% |
| To 6th April 2019 4% | 3.2% | 0.8% |
HOW WE WORK IT OUT
We calculate contributions based on your basic wage.
This includes your basic wage, but excludes any payments for expenses and work finding commission).
We’ll pay: 3% of your basic wage each time we pay you.
You’ll pay: 3% of your basic wage each time we pay you (including the tax relief contribution).
Your contributions will be deducted from your basic wage.
If you have any questions about contributions or your enrolment, please contact our Customer Services Team on 0845 058 1200.
OPTING OUT
If you decide that you are not ready to put money aside for your retirement just yet, you have the right to opt out. You must do this within the opt-out period, which is normally one month from the date your enrolment begins. NEST will write to you shortly to tell you about your one month opt-out period. Before you can opt out you will need your NEST ID. This will also be in the letter which NEST will send to you.
Once you’ve received your NEST ID there are several ways to opt out. You can opt out by:
Visiting www.nestpensions.org.uk/member-huband following the information on screen
Calling NEST on 0300 020 0090 and following the automated instructions
Calling NEST on 0300 020 0090 and requesting a paper opt-out form which you will need to sign and give to us.
When you opt out online or over the phone you’ll be asked to confirm that you want to opt out and that you are personally submitting the opt-out notice.
WHAT HAPPENS IF YOU OPT OUT?
Opting out means you’ll be treated as though we never enrolled you into the scheme. Once a valid opt-out notice has been received, we’ll refund to you any member contributions you’ve made through your salary.
If you change your mind after opting out, you can opt back in again if you want to. We’ll have a duty to make that happen once in any 12 month period if you ask us to.
If you choose to opt out you’ll normally be automatically re-enrolled back into a pension scheme at a later date. This is usually every three years after the date these new duties first apply to us. This will also happen if you stay in NEST but stop making contributions.
This happens because the reasons you had for opting out or stopping contributions originally may have changed and you might be ready to start building a retirement income. Again, you can still choose at that point whether you want to stay in or opt out of the scheme.
STOPPING CONTRIBUTIONS
Once you’re a member of NEST you might want to stop making contributions or take a break from contributing later on. NEST lets you do this. There’s no need to opt out in the first month just because you think you might want to take a contribution break later.
If you do take a break and decide to start contributing again, you just need to let NEST or +Us know. If you choose to stop contributing, the contributions you’ve made so far will stay in your retirement pot.
PROVIDING YOU WITH A WORKPLACE PENSION SCHEME
Once you’re a member of NEST it’s our legal duty to make sure your membership carries on and you keep getting the contributions you’re entitled to. This doesn’t apply if you opt out or stop making contributions. If we decide to change your pension scheme and you’re still eligible to be automatically enrolled, we need to make sure we put you into another scheme that meets the same legal standards the next day, if you’re still employed by us.
GETTING MORE INFORMATION ABOUT PENSIONS
You can find out more about pensions and being a member of NEST by visiting their website at www.nestpensions.org.uk or search online for NEST pensions.
You can also get general information on pensions and saving for later life from Directgov at www.direct.gov.uk/workplacepension
If you would like to know more about NEST you can visit their website at www.nestpensions.org.uk or search online for NEST pensions.
You can also contact them via:
NEST
Nene Hall
Lynch Wood Business Park
Peterborough
PE2 6FY
Member enquiries: 0300 020 0090
Email: support@nestpensions.org.uk