Tim Jones, Chief Executive, NEST, says:
The comments from AWD Chase de Vere don't reflect NEST's experience.
NEST is a low charge scheme and it has been independently recognised as such.
The response we are getting from employers is very good and we are very confident we will be used by a large number of employers. We already have around 30 very large employers committed to using NEST in the first six months of staging.
We conduct regular independent research amongst UK employers. Our research shows that approximately one fifth (21 per cent) of the largest employers (5,000 + workers) in the private and not-for-profit sectors say they are ‘quite likely' or ‘very likely' to use NEST for some groups of workers. The majority of large employers say they would use NEST alongside another scheme(s). Over 150 employers are already live in NEST and we expect to make some joint announcements about large employers who are using NEST in the early stages of automatic enrolment later in the year.
Employers who are already using, and signing up to, NEST recognise that NEST has been specifically designed for automatic enrolment and is an easy-to-use, online scheme. We've designed our processes after testing with employers of all shapes and sizes - and workers - to ensure they are simple to use and reduce administration wherever possible.
NEST is designed for people who currently don't have access to a workplace pension. They tend to have lower salaries that people currently in workplace pensions and are unlikely to have previous pension pots to transfer. Whilst some employers have told us that the restrictions are causing difficulties, others are reporting that their workers won't be affected, in the short term at least.
We are very clear about what NEST offers to employers and their workers. We are a scheme designed specifically for automatic enrolment, simple to use, with clear communications and low charges. We are run on a not-for-profit basis, and the Trustee has to run the scheme in members' interests. Any employer which chooses NEST can do so with confidence that it has been designed to help them meet their automatic enrolment duties, and to provide a great pension scheme for their workers.
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