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All UK businesses must offer pensions

Posted: October 27, 2010 at 4:06 pm 4,634 views One Comment

The Government has agreed that all UK firms must offer a pension scheme for all their employees or enrol them on the new National Employment Savings Trust (Nest).
To be eligible for the nest scheme employees will need to be earning at least £7,475 per annum.

The nest program should be staring in 2011 and all firms must join by 2016.
This will hopefully mean that between four and eight million workers will have a pension scheme for the first time.This scheme has come to fruition after an independent review into automatic pension enrolment for workers. These findings were welcomed by the Pensions Minister Steve Webb.

“The National Employment Savings Trust (Nest) will be the new low-cost pension scheme that will be the vehicle for saving for millions.” He Said.

For the first time ever employers must make pension contributions for all their employees from 2012.

There will be minimum levels of contributions for both employers and employees, this should be around 8% of their yearly income.
If employers do not provide a scheme then employees will be automatically enrolled in the nest scheme.

Temporary Employees

There will be a three month grace period for employers to enrol their staff in their own scheme or the nest scheme.
An employee is able to enter into a scheme before the three month period ends, this allows people who change jobs frequently build up a pensions pot.

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One Comment »

  • max said:

    trusted@pillspot.com” rel=”nofollow”>.…

    thanks for information….

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