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Government hatches new 'Nest' pension scheme
The new Government-backed workplace pension scheme is to be known as the National Employment Savings Trust (Nest).
Previously referred to as Personal Accounts, the Nest scheme will be one option available to employers, who starting from 2012 will be obliged to enrol their employees in a workplace pension scheme.
The scheme forms part of a number of forthcoming changes to the pensions regime, which are being phased in between 2012 and 2016 (depending on the size of the firm), and which aim to ensure that low to middle income workers are saving enough for their retirement.
Under the new regulations, employees will be automatically enrolled in a workplace scheme unless they choose to opt out.
The Nest scheme will be run by a not-for-profit trustee corporation, and its launch will begin in 2011.
Joanne Segars of the National Association of Pension Funds said, 'Already almost 12 million people are saving in a workplace pension with contributions from their employer'.
'This announcement brings us a step closer to the 2012 reforms when nearly all working people, especially those on low a moderate incomes, will be given this opportunity.'