Financial Planning for businesses and organisations, large or small have been given the revised dates for NEST or auto-enrolment of staff into a pension scheme. The Pensions Minister, Steve Webb, is keen to make auto-enrolment work. The financial planning implications of NEST are significant. For starters, all employers, irrespective of size must, by law, set up a pension scheme. Millions of people will be joining a pension scheme for the first time or a new scheme. A good pension scheme that is easy for employers to operate will be vital and Steve Webb is ideally looking for the system to be a “no brainer”.

The dates for the roll out across Britain are listed on the DWP website which can be found by clicking here. In essence though, small firms with less than 30 staff will begin auto-enrolment from 1st January 2016 – some 4 years off. The largest companies, with 250 or more staff begin this October, any firm with 50-250 staff must begin auto-enrolment from 1st April 2014.

Many employers are getting their pension scheme sorted out early to ensure that their system works and that they have a good pension scheme for staff. Of course, it also helps them look good and ahead of the game, which in times where possibly salaries are not keeping pace with inflation, this could be seen as a good compensation. NEST will require employers to contribute 3% with employees contributing 5% (less tax relief) so employers need to be planning for additional expenses and employees need to be planning for pension contributions that for many will be higher than most currently pay.

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