Workplace Pensions Seminar Wednesday 29 January 2014
© NEST Corporation 2014
Legal information© NEST Corporation 2014. All rights reserved. This information doesn’t constitute financial, investment or professional advice and shouldn’t be relied on.
We don’t make any personal recommendation or give advice to employers and their workers on how to make investment decisions. If you’re considering using NEST you might want to talk with an appropriately qualified financial adviser.
We don’t give any undertaking or make any representation or warranty that this document is complete or error free. We don’t accept responsibility for any loss caused as a result of any error, inaccuracy or incompleteness.
Any form of reproduction of all or any part of [these slides] is not allowed.
© NEST Corporation 2014
Overview
What is NEST
What automatic enrolment means
Why NEST
Supporting employers into NEST
© NEST Corporation 2014
Living longer and working lessNotes:1. OADR = old age dependency
ratio. SPA = State Pension Age.
2. Working age population is defined as individuals aged 16 to SPA.
3. Ratios between 1971 and 2010 are based on mid-year population estimates. From 2011 onwards, ratios use 2010-based mid-year population projections.
4. SPA changes are those contained in the Pensions Acts 1995, 2007 and 2011. For the purposes of this analysis, the changes are applied to the UK population, but it should be noted that pensions in Northern Ireland are a devolved matter and legislation equivalent to the Pensions Act 2011 is still under discussion.
Source: Population estimates and 2008-based principal population projections, Office for National Statistics
Number of retired people per 1,000 people of working age
© NEST Corporation 2014
Who does what?Scope of automatic enrolment
Staging and phasing timetable
Compliance with employer dutiesSets governance standards for qualifying schemes
Regulator of workplace pension schemes and providers, including NEST
A new pension scheme established by statute, run as a trustPublic service obligation to accept all employers who want to use NEST to meet their employer duties
© NEST Corporation 2014
Automatic enrolment: On your marks...
Do you know...
Which workers you
need to automatically
enrol?
Who you will need to make contributions
for?
If you can use your current scheme to meet your
new duties?
When your staging date
is?
© NEST Corporation 2014
Developing advisory servicesRead guidance from The Pensions Regulator (TPR)
Guidance notes available at tpr.gov.uk
© NEST Corporation 2014
DWP’s staging and phasing
Oct 2012
Feb 2014
Apr 2014
Apr2015
Jan 2016
Employers with 250 or more staff
Employers with 50 to 249 staff
Employers with 30 to 49 staff
Employers with fewer than
30 staff
Aug2015
Oct 2015
April 2017
Stag
ing
1 per cent employer contribution2 per cent employer
contribution
3 per cent employer
contribution
Oct 2017
Oct 2018
Phas
ing
1 per cent member contribution3 per cent member
contribution
5 per cent member
contribution
© NEST Corporation 2014
The staging process. How big and how many?
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Number of employers Number of workers
123,236 employers with <30 workers
17 employers with >120,000 workers
7,982 employers with >90 workers
© NEST Corporation 2014
Non-eligible jobholder£5,668
£9,440
£0
Eligible jobholder
Entitled worker
16 22 SPA
Annu
al E
arni
ngs
75
Age
Employer dutiesWho qualifies for what
© NEST Corporation 2014
Designed for the target market
Clear communication
Ready for automatic enrolment
Online
Travels with the member
Award-winning investment approach
Great value
Delegated access
© NEST Corporation 2014
How NEST can be used
Offered to all workersSole scheme
For a particular group of workers
To sit alongside existing scheme already in place for a different group of workers
Where the existing scheme has a waiting periodAs an entry level scheme
As a base scheme Where minimum contributions are made for all workers, using another scheme to ‘top up’ contributions
Letting you keep your existing voluntary scheme(s) while being sure that you’ve got your duties covered
As your automatic enrolment scheme
© NEST Corporation 2014
Charging structure
Annualmanagement charge
0.3 per cent
Charge on new contributions1.8 per cent
and
© NEST Corporation 2014
UBSGlobal equity
BlackRockDiversified
beta
BlackRockSterling cash
SSgaGilts
SSgaIndex-linked
gilts
RLAMUK corporate
bonds
LGIMDirect and listed real
estate
TBAEmerging marketequities
Tailored risk management to protect members and deliver best outcomes
Income seeking assets
Growth seeking assets
Clear objectives
NEST 2058 Retirement Fund
NEST 2039Retirement Fund
NEST 2022Retirement Fund
Clearly labelled funds – designed around members
DWP guidance and strategy design
© NEST Corporation 2014
Award-winning investment strategy
Best DC Investment Initiative Award
Best Use of DC and Hybrid Structures
Best Investment Strategy
Best Newcomer to Real Estate
© NEST Corporation 2014
Restrictions and unique features
Only a pension
One price for all
Transfer ban
Public service obligation
Contribution cap
Contribution limit
Transfers
© NEST Corporation 2014
Supporting employers into NEST
Employers
NEST
Payroll providers
EBCsPension providers
3rd party adminSoftware providers
NEST’s offering
Standard data file specification
3 methods of data submission
Management of opt-outs
Statutory comms templates
All scheme communications
© NEST Corporation 2014
How NEST is helpingWebsite help and guidance– Guides to signing up and setting up– Guides to using NEST– Planning tools– Communication templates
Countdown emails– Make sure you meet key
milestones and do the right things at the right times
© NEST Corporation 2014
What next?
Visit our help centre at nestpensions.org.ukWatch our video demos on youtube.com/user/nestpensionWatch recordings of our delegated access webinars or register for upcoming webinars by visiting nestpensions.org.uk/eventsFor questions about setting up and managing NEST accounts or for any further assistance call 0300 020 0090