What if the employer doesn’t have an occupational pension scheme?
Eligible workers from any size or sector of company can be automatically enrolled onto the independent pension scheme set up by government, Nest – national employment savings trust – formerly known as personal accounts. Both employers and employees can contribute to Nest and, like QWPS, tax relief makes up a proportion of the contribution. The annual contribution limit is £3,600. Employers and Nest scheme members will be able to contribute more than the minimum and structure their contributions in different ways. And the scheme is flexible for members who frequently change jobs, where their different employers choose the personal accounts scheme to meet their auto-enrolment duties. However, transfers in and out of Nest are banned. The scheme will mainly be delivered online or via text message. What penalties do companies face if they fail to comply? It is the Pensions Regulator’s responsibility to ensure that employers comply with their duties. Failure to comply could lead to a fixed p
