Employers - ready to "NEST"?
New rules mean that employers will be statutorily required to make contributions to employees’ pension schemes. The government is setting up a special pension scheme called “NEST” (National Employment Savings Trust) into which contributions can be paid.
Although the start date for this is a couple of years away, we at robinson+co are keen to make sure that our clients hit the ground running, especially with the added complication of “RTI” on the horizon (click here to read our article of 13 March 2012).
“You may think that your employees can simply opt out of this system,” says one of robinson+co’s Payroll Team, Christine Smith, “but this is wrong. You absolutely must first enrol your employees onto the scheme – only then may they opt out if they want to.” There will be penalties if you do not enrol your employees onto the scheme.
This will mean a lot of work for employers and H M Revenue & Customs are already issuing guidance; they suggest getting prepared some 18 months before you must operate the scheme.
“You are busy running your businesses,” says Christine’s colleague Deirdre Chestney, “so rather than worrying about this, contact me or Christine and we can save you time, energy and money!”
Christine and Deirdre can be contacted on 01900 603623, 01946 692423 or 019467 25808.