NEST Corporation Chair, Otto Thoresen said:
‘I’m pleased to report that NEST has been performing well, successfully managing millions of pounds on behalf of its members and helping thousands of employers set up their schemes and meet their duties.
‘But the number of employers coming under the auto enrolment duties increases exponentially from now until 2018, so the hard work has only just started. Our number one priority is making sure we are prepared for the volumes to come.
‘We’ve a statutory duty to help any employer who wishes to enrol their workers and look forward to playing our part in the next stages of the auto enrolment journey.’
NEST Corporation chief executive, Tim Jones, said:
‘Over the course of 2014/15 employer numbers more than doubled from just under 5,000 employers to over 14,000 and NEST took on 1 million members in the year, doubling our membership to 2 million.
‘That’s good progress but there is much more to come. 45,000 employers are meeting their staging dates this year and that’ll rise to an average of 45,000 a month next year. As the only provider required by law to be open to any employer, we have to be ready for high volumes. That means we’ve had to continue developing our system capacity and processes to meet changing demands.
‘We’re proud of what we’ve achieved so far, and the part we’re playing in what are significant reforms, but we don’t take the responsibility we’ve been given lightly. Whilst I’ll be sad to leave NEST I’m very pleased that Helen Dean will be taking over my role – I’ll be leaving NEST in very safe hands.’
NEST scheme key stats:
As at the end of March 2015:
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NEST had over 2 million members (2013/14: over 1 million), including over 1,000 self-employed members. The average opt out rate was 8 per cent on average and lower for younger members
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NEST had nearly £420m assets under management (2013/14: £104m), largely invested in the default funds (NEST Retirement Date Funds). Over 99 per cent of members are invested in those funds
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NEST was working with over 14,000 employers (2013/14: just under 4,700)
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There were around 1,400 intermediaries signed up to NEST Connect, our online hub for professionals offering auto enrolment services to employers
The NEST Corporation accounts highlight the successful onboarding of nearly 10,000 employers over the financial year. Other highlights include:
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In preparation for the unprecedented volume of new employers and members expected during the next 18 to 24 months, the self-service sections of the NEST website were optimised.
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A new online hub, NEST Connect, was developed to allow third party intermediaries to set up and manage the auto enrolment administration process for their employer clients and work on multiple accounts from one place.
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NEST launched new web services functionality that helps businesses manage their NEST account through their payroll software.
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NEST added two emerging markets equity mandates and a series of single year maturity gilt funds in the latest steps to refine our investment strategy for NEST members.
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NEST published a response to its consultation, The future of retirement: A consultation on investing for NEST’s members in a new regulatory landscape, setting out a blueprint for a retirement income strategy that would allow our members to get the most out of their pots and enable them to enjoy a better retirement.
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