7/1/2010
By Sophie Baker
The Government's workplace pension reforms have taken a further step forward today with the rebranding of the pension scheme formerly known as Personal Accounts to the National Employment Savings Trust (NEST).
The Personal Accounts Delivery Authority (PADA), which was allocated the task of developing the scheme as part of the Government's reforms, announced that the national workplace pension scheme, designed for low-to-moderate earners, will be run by the NEST Corporation, a not-for-profit trustee corporation.
Jeannie Drake, acting chair for PADA, said that NEST, which will roll out in low volumes in 2011, along with the reforms to UK workplace pensions, "represent a consensus settlement reached across industry, political parties and interest groups. We all have one goal in mind - to make saving for retirement become the norm and to put an end to poverty in old age. The release of the new brand today is another milestone along the way to achieving one of the biggest social reforms of our generation."
Tim Jones, PADA chief executive, added: "We need a brand which will resonate with the scheme's potential members; with NEST we believe we will achieve that. We have followed a detailed, research-based process to ensure this will be a brand designed 'by members, for members'. NEST is clearly favoured by both potential members and employers."
It is hoped, echoed Minister of State for Pension Reform, Angela Eagle, that the Government's "radical" reforms to the pensions system will allow low-to-moderate earners to save for their retirement in a workplace pension with a new guaranteed minimum contribution from their employer. "NEST will play a key role in this and help transform attitudes to saving," she said.
The new brand has been welcomed by the industry so far, with Joanne Segars, chief executive at the National Association of Pension Funds (NAPF), adding: "We all need a pensions nest egg to enjoy a comfortable retirement. Already almost 12 million people are saving in a workplace pension with contributions from their employer. Today's announcement brings us a step closer to the 2012 reforms when nearly all working people, especially those on low and moderate incomes, will be given this opportunity."
Continuing with the NEST theme, Trades Union Congress (TUC) general secretary, Brendan Barber, said the new identity is a smart one for what some UK workers "desperately need". "Today is another milestone in building a new pension system with the hatching of NEST.
"This will give millions the chance to build up their own pension nest eggs with the support of their employer.
"NEST is a smart identity for the low-cost pensions savings scheme that we desperately need."
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