PADA, the Personal Accounts Delivery Authority,Ã‚Â has announced that National Employment Savings Trust (NEST) will be the permanent name of the new national workplace pension scheme formerly known as the personal accounts scheme.
NEST will be a national workplace pension scheme designed specifically for low-to-moderate earners. It is being set up as part of the Government’s workplace pension reforms. It will be one of the schemes available for employers to use to fulfil their new duties under the workplace pension reforms, due to come into effect from 2012. NEST will be run by the NEST Corporation, a not-for-profit trustee corporation, and will have its own website. NEST will launch in low volumes in 2011.
Jeannie Drake, PADA Acting Chair, said: “The reforms to UK workplace pensions, including NEST, represent a consensus settlement reached across industry, political parties and interest groups. We all have one goal in mind – to make saving for retirement become the norm and to put an end to poverty in old age. The release of the new brand today is another milestone along the way to achieving one of the biggest social reforms of our generation.”
Tim Jones, PADA Chief Executive, added:Ã‚Â “We need a brand which will resonate with the scheme’s potential members; with NEST we believe we will achieve that. We have followed a detailed, research-based process to ensure this will be a brand designed ‘by members, for members’. NEST is clearly favoured by both potential members and employers.”
Minister of State for Pension Reform, Angela Eagle, concluded: “This Government’s radical reforms to the pensions system will ensure millions of workers on low and moderate incomes are able to save for their retirement in a workplace pension with a new guaranteed minimum contribution from their employer. NEST will play a key role in this and help transform attitudes to saving.”
Key facts about the workplace pension reforms
Under the Pensions Act 2008, starting from 2012 employers will be required to put eligible workers into a scheme which meets certain criteria and make minimum contributions to the scheme. This is called auto-enrolment. NEST will be one of the pension schemes available for employers to use. It is being designed specifically for low-to-moderate earners and will complement existing provision.
- Employers will have to contribute a minimum of 3 per cent on a band of earnings, although they can contribute more than this. The total minimum contribution for eligible workers must be 8 per cent (or equivalent) of the band of earnings. This is made up of the employer’s contribution, tax relief and the worker’s contribution.
- The duties will be staged in from October 2012, with largest employers affected first. To help employers and workers adjust to costs, contributions will be phased in for employers and employees starting at 1 per cent and increasing gradually to the minimum level.
Key facts about the brand development
- The Pensions Act 2008 gave PADA the authority to implement the personal accounts scheme. Part of this work was to establish a brand that will resonate with potential members, employers and intermediaries.
- PADA developed the new brand for the personal accounts scheme following extensive research with these target audiences.