Over 5000 inquiries to the Pensions Regulator as NEST causes confusion
If you are confused over the new compulsory United Kingdom workplace pension schemes (National Employment Savings Trust; NEST), you are not alone. More than 5,000 inquiries have been made to the Pensions Regulator in the past five months about NEST and there was a 50 per cent increase in October 2012, when the rules came into force for large companies. Pincent Masons, who published the data, said that calls were made from both individuals and companies, indicating a situation of general confusion in the workplace.
The obligation for employers to enter all employees into a formal pension scheme was introduced for the largest businesses in October 2012 and is being phased in for medium and small companies through 2013. There are also added complexities for those who work abroad, which may delay the implementation of enrolment. Businesses may face fines of up to £10,000 for missing enrolment deadlines and companies may be cutting their internal timelines the enrolment process and administration very tight
All employees have to be enrolled in workplace schemes and this should ideally involve individual planning to incorporate plans already in place for retirement provision.