Over the last decade, the Government has conducted a major review of the UK pensions system, due to growing concern about the inadequacy of pensions savings and an ageing population. This has culminated in the forthcoming introduction of a national pension saving scheme, NEST, intended to simplify the process of saving for retirement and which will be supported by compulsory employer contributions in order to encourage people to put money into a pension scheme. One of the final stages in this process was reached last month with the closing date for comments to a review by the Department of Work and Pensions addressing how best to implement the new regime, which from 2012 will require all employers to participate in an "automatic enrolment scheme". Employers can choose to use NEST to meet their auto-enrolment duties under the new regime or they can use an alternative scheme established by the employer, which counts as a "qualifying scheme".
For more information see our separate briefing on NEST here.