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What is Pension Auto-Enrolment?

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

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