The Government has published the outcomes of an independent review on how to make automatic enrolment on to the new National Employment Savings Trust (Nest) work. Under the Government's plans, all employers will have to enrol eligible employees in Nest if they do not already provide a pension scheme requiring similar levels of contributions.
Automatic enrolment onto Nest is due to start in October 2012, with the largest employers joining first and the smallest joining by September 2016. Contributions from staff and employers will also be phased in. According to the Government between four and eight million workers will start to save in a pension scheme for the first time.
Workers aged 22 or over that earn at least £7,475 a year will be eligible once they have worked for three months. Their contributions will be based on their income above the national insurance earnings threshold (currently £5,715) and employers and employees will also have to make a minimum level of contributions, eventually amounting to 8% of income a year.
Bite Size will of course continue to update you on further developments.