Automatic Enrolment Pension Schemes
Large employers are likely to set up their own scheme as it will be cost efficient for them, however for small firms this isn’t practical.
Therefore there are multi-employer master trust schemes that solve this issue. Two options are National Employment Savings Trust (NEST) and The People’s Pension.
NEST was set up by the UK government to offer a workplace pension for all employers and is legally bound to accept all business however unprofitable.
The People’s Pension is run by B&CE, a not for profit organisation offering pensions in the construction industry for many years before offering it to all sectors.
The differences:
Question - Use Your Note Taker To Jot Down Ideas / Calculations
ABC Ltd has chosen NEST as its workplace pension provider. ABC Ltd should be aware that:
a) NEST does not allow members to transfer in funds held in other pension pots.
b) Members will pay a single charge of 0.5% p.a.
c) NEST does not offer a Sharia compliant pension fund.
d) The recommended fund is a Retirement Date fund.
D)
NEST recommend Retirement Date funds. However, the member can elect to invest in one of the other funds offered by NEST if they prefer. Both pension types are Sharia compliant and will allow transfers in however The People’s Pension has a charge of 0.50%