1. © NEST Corporation 2014 Welcome to NEST A presentation for line managers

2. © NEST Corporation 2014 Legal information © NEST Corporation 2014. All rights reserved. This information does not constitute financial, investment or professional advice and should not be relied upon as such. Reproduction in any form of all or any part of these slides is prohibited.

3. © NEST Corporation 2014 Your workers’ new workplace pension rights Millions of workers are getting the opportunity to save in a workplace pension scheme You may have to automatically enrol workers into a pension scheme if they’re not already in one You may have to put money into the scheme on behalf of workers if they’re eligible Workers may also get tax relief from the government If workers don’t want to become a member they can opt out

4. © NEST Corporation 2014 Who’ll be automatically enrolled? If a worker is at least 22 but under State Pension age and earns more than £10,000 each year they’ll be automatically enrolled they’ll get contributions from you they can opt out within one month of enrolment they need to receive a letter giving them more information © NEST Corporation 2014

5. A new workplace pension scheme NEST is for the millions of people who want a good value workplace pension scheme that does the hard work for them. Easy to understand Workers can look after their account online Low charges Manages worker’s money carefully according to their age Workers have one retirement pot for life which they can pay into if they change jobs

6. © NEST Corporation 2014 Who pays into workers’ retirement pots?

7. © NEST Corporation 2014 Retirement funds designed around your workers NEST 2058 Retirement Fund NEST 2039 Retirement Fund NEST 2022 Retirement Fund

8. © NEST Corporation 2014 NEST’s other fund choices NEST offers choice for those who want it NEST Ethical Fund NEST Sharia Fund NEST Higher Risk Fund NEST Lower Growth Fund NEST Pre-retirement Fund

9. © NEST Corporation 2014 Taking money out of NEST Members can take their money out at any time after reaching age 55 They can buy a retirement income, take a cash lump sum or a combination of both If members suffer from ill-health they may be able to take their money out early If members die before taking their money out they can make sure it goes to their loved ones

10. © NEST Corporation 2014 What needs to happen? You need to send your workers a letter letting them know their options If workers are automatically enrolled or opt in, NEST will send them a welcome pack with their NEST ID Once they have their NEST ID they can switch on their online account

11. © NEST Corporation 2014 What if workers are automatically enrolled and want to opt out? They can opt out within a month once they’ve got their NEST ID: Online By telephone By post

12. © NEST Corporation 2014 When is this happening? The new employer duties affect different organisations at different times, depending on their size The Inland Revenue will write to you with your staging date nearer the time Oct 2012 Feb 2014 Apr 2014 Apr 2015 Jan 2016 Employers with 250 or more staff Employers with 50 to 249 staff Employers with 30-49 staff Employers with fewer than 30 staff Aug 2015 Oct 2015 April 2017 Oct 2017 Oct 2018

13. © NEST Corporation 2014 What do you need to do? Discuss the new workplace pension reforms and NEST with your workers to raise awareness and understanding Be careful not to give financial advice – more information is available at thepensionsregulator.gov.ukthepensionsregulator.gov.uk It’s your legal duty to not encourage your workers to opt-out When you have been sent your staging date you need to plan your next steps, including which letters you need to send, to whom and when.

14. © NEST Corporation 2014 Free Planning Tool http://www.thepensionsregulator.g ov.uk/employers/planning-for- automatic- enrolment.aspx?gclid=CMvj49ebq8g CFWaK2wodAO0AOw

15. © NEST Corporation 2014 Process Before Stage In Stage 1: Register with nest Stage 2: for each worker consider the following: Is the worker working, or do they ordinarily work in the UK Yes Is the worker aged at least 16 and under 75 Yes Progress to Stage 3 No No duty No No duty

16. © NEST Corporation 2014 Process Before Stage In Stage 3: Assess each individual employee's earnings £5,772 or less? Already in a workplace pension scheme? Yes Send letter 5 No Send letter 4 Between £5,772 and £10,000 In a qualifying pension scheme Yes Send letter 3 No Send letter 2 Over £10,000 At least age 22 and under State Pension age? Yes In a qualifying pensions scheme Yes Send letter 3 No Send letter 1 No In a qualifying pension scheme? Yes Send letter 3 No Send letter 2

17. © NEST Corporation 2014 Process for Employees Joining After Stage In Stage 1: for each worker consider the following: Is the worker working, or do they ordinarily work in the UK Yes Is the worker aged at least 16 and under 75 Yes Progress to Stage 2 No No duty No No duty

18. © NEST Corporation 2014 Process for Employees Joining After Stage In Stage 2: Assess each individual employee's earnings £5,772 or less? Send letter 4 Between £5,772 and £10,000 Send letter 2 Over £10,000 At least age 22 and under State Pension age? Yes Send letter 1 No Send letter 2

19. © NEST Corporation 2014 Workers need to keep their details up to date Make sure your workers have a valid National Insurance number Encourage them to keep their details up to date using their online NEST account They should tell NEST who they want their retirement pot to go to if they die before taking their money out of NEST Tell them where to go for more information about the workplace pension reforms and NEST

20. © NEST Corporation 2014 Where to go for more information? For more information visit: nestpensions.org.uk thepensionsregulator.gov.uk www.dwp.gov.uk

21. © NEST Corporation 2014 Questions?