Workplace Pension Reform & Automatic Enrolment
Do we need to set up our own Scheme?
Not necessarily, employers who do not have, or do not want to set up their own Qualifying Workplace Pension Scheme (QWPS) will have the option of using the National Employment Savings Trust (NEST). This has been established by the Government and is designed to be low cost and is specifically targeted at low to medium earners.
The restrictions applying to NEST will be:
No transfers in or out
Upper contribution limit of £4,500 per year
Limited retirement options
Limited investment options
The following table highlights the key differences between NEST and a QWPS. For many firms there may be considerable advantages to operating a QWPS.