Workplace Pensions Seminar Pensions...We don’t make any personal recommendation or give advice to...

Workplace Pensions SeminarWednesday 29 January 2014

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NESTWorkplace Pension Seminar

Matt HarmanRelationship Manager

29th 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.


Overview

What is NEST

What automatic enrolment means

Why NEST

Supporting employers into NEST


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


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


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?


Developing advisory servicesRead guidance from The Pensions Regulator (TPR)

Guidance notes available at tpr.gov.uk


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


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


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


Designed for the target market

Clear communication

Ready for automatic enrolment

Online

Travels with the member

Award-winning investment approach

Great value

Delegated access


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


Charging structure

Annualmanagement charge

0.3 per cent

Charge on new contributions1.8 per cent

and


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


Award-winning investment strategy

Best DC Investment Initiative Award

Best Use of DC and Hybrid Structures

Best Investment Strategy

Best Newcomer to Real Estate


Restrictions and unique features

Only a pension

One price for all

Transfer ban

Public service obligation

Contribution cap

Contribution limit

Transfers


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


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


Communicating NEST


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


nestpensions.org.uk

Workplace Pensions Seminar Pensions...We don’t make any personal recommendation or give advice to...

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