Nest Corporation will be one of the employers offering the national employment savings trust (Nest) to its employees, alongside a group personal pension (GPP) plan provided by Aviva.
Nest Corporation is among a range of employers of different sizes and sectors using Nest ahead of the introduction of the 2012 pension reforms. Nest Corporation’s staging date, when it becomes subject to the new duties, is likely to be in 2014.
As well as being given the opportunity to pay into Nest from later this year, permanent staff members will be offered a top-up scheme, provided by Aviva, for contributions over Nest’s annual contribution limit of £4,200.
Total employer and employee contributions to Nest Corporation’s arrangements will amount to 13% of basic salary.
The contract with Aviva runs indefinitely and the arrangement will be put in place later in 2011.
Tim Jones, chief executive of Nest Corporation, said: “We are choosing to use Nest in conjunction with a top-up scheme for our staff because we wanted to be a part of the scheme we are working to deliver.
“We expect many medium-sized and larger employers to use Nest alongside another pension scheme in this way and urge employers that have not yet considered how they will respond to their new employer duties to find out when the duties will impact their business and start considering their options.”
Paul Goodwin, director of workplace pensions at Aviva, added: “Aviva will be delivering an integrated and largely automated top-up GPP scheme for Nest Corporation’s employees.
“There are a number of approaches to implementing effective automatic enrolment solutions in the workplace. All employers will need to review their pension provision and ensure they have the best solution in place for their employees in the run-up to their staging dates.”
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