Nest system 'a burden on employers'

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Nest system 'a burden on employers'

Tue 8th Jun 2010

The National Employment Savings Trust (Nest) pensions system set up by the previous Labour government is a burden on employers in many ways, despite having several positive aspects to it.

Elaine Gibson, senior policy advisor at the Institute of Payroll Professionals, claimed that Nest is "absolutely brilliant for employees", since their bosses will be obliged to provide pension provision.

She explained: "Under what is being planned at the moment, employers will have to contribute up to three per cent of certain capped earnings. Employers have to automatically enrol all their employees."

Ms Gibson stated that the issue becomes a burden for a company if a worker falls into the category of auto-enrolment, since three years later the organisation will have to sign them up again if they still work there.

Recently, Save Our Savers spokesperson Reverend Dr Jon Strain questioned whether the new coalition government's review of Nest will be thorough enough.

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