1. A presentation for line managers
13 April 2019
Welcome to Nest
A presentation for line managers
Good morning/afternoon.
My name is [x].
I’m here today to tell you about what’s changing in workplace pensions and what that means for your teams.
The presentation should take about [X] mins. We’ll be looking at workers’ pension rights and how you can help.
We’ll also look at what happens to workers’ money in Nest and what they need to do as a Nest member.
The presentation will give you general information, and we’ll answer some of the main questions that people ask about Nest. There will also be time for questions at the end if you’d like more detail on anything.

2. 13 April 2019
Legal information
© Nest Corporation All rights reserved. This information does not constitute financial, investment or professional advice and should not be relied on. We do not give any undertaking or make any representation or warranty that this document is complete or error free. We do not accept responsibility for any loss caused as a result of any error, inaccuracy or incompleteness. Any form of reproduction of all or any part of these slides is not allowed. The Nest trade marks and trade names used above are owned by Nest Corporation and should not be used in any way without our permission.
NOTE TO PRESENTER – PLEASE ENSURE THIS SLIDE IS INCLUDED IN ALL PRESENTATIONS.

3. Our workers’ workplace pension rights
13 April 2019
Our workers’ workplace pension rights
We may have to automatically enrol workers into a pension scheme if they’re not already in one.
We 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.
Workers can opt out if they don’t want to become a member.
A change in the law means it’s now easier for workers to save for their retirement.
Millions of workers are getting the opportunity to save in a workplace pension scheme helping them to build a retirement income.
Depending on the workers’ age and income, we may have to enrol them into a workplace pension scheme.
They may also have to make a contribution to their retirement pot.
If it’s not the right time for workers to start saving for their pension right now they can opt out within the first month of enrolment.
They’ll be automatically enrolled again in about three years if they’re still eligible and they’ll have another chance to start saving then.
We will be letting them know how they’ll be affected shortly.

4. Who’ll be automatically enrolled?
13 April 2019
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
get contributions from us
receive a letter giving them more information
They can opt out within one month of enrolment
What workers are entitled to depends on how old they are and how much they earn.
All workers aged over 22 and below State Pension age who earn more than £10,000 each year will be automatically enrolled into our workplace pension scheme.
Other workers can ask to be enrolled, but anyone that earns less than £6,136 isn’t entitled to contributions from us. They also don’t have the same opt out rights, because they’ve asked to join. They can stop contributing whenever they like.
We will be able to give you more information about how the workplace pension reforms affect our workers.
These pay levels apply to the 2019/20 tax year. They’ll be reviewed by the government and will probably change each year.
State Pension age
State Pension age is 65 for men born before 6 December 1953.
For women born after 5 April 1950 but before 6 December 1953, their State Pension age is between 60 and 65.
Under the Pensions Act 2011 women’s State Pension age will increase more quickly to 65 between April 2016 and November 2018.
From December 2018 the State Pension age for both men and women will start to increase to reach 66 in October 2020.
State Pension age will now increase to 67 between 2026 and 2028 and then to 68 between 2044 and 2046.
The Pensions Act 2014 provides for a regular review of the State Pension age, at least once every five years. So these dates could change.

5. The Nest workplace pension scheme
13 April 2019
The Nest workplace pension scheme
Easy to understand
Low charges
Workers can look after their account online
Manages worker’s money carefully according to their age
Workers have one retirement pot for life which they can pay into even if they change jobs
Nest is for the millions of people who want a good value workplace pension scheme that does the hard work for them.
We understand that pensions can seem complicated and reading about them can be a bit boring. That’s why they make an effort to explain things clearly. They don’t like jargon and use plain language so members can quickly understand what’s happening to their money.
Nest’s online accounts make it easier for workers to keep an eye on their pension. They can find out how much money is in their retirement pot, make extra contributions or change the date they want to take their money out simply by logging in whenever it’s convenient for them. There’s also a UK-based contact centre that can help you over the phone.
Nest has low charges but offers all the services and protection you’d expect from a high-quality pension scheme.
Members have one retirement pot for life which they can pay into if they change jobs.
Nest is an occupational pension scheme run on a not for profit basis. Nest is run for its members, and has been set up to look after its members’ money.

6. Who pays into workers’ retirement pots?
13 April 2019
Who pays into workers’ retirement pots?
Worker
Government
Employer
In most cases a worker’s retirement pot is made up of contributions from the worker, us and the government.
We’ll let workers know in writing how much we’ll be contributing to their retirement pot.
Once the money is in a worker’s retirement pot Nest aims to make their money grow.
If employer is using qualifying earnings:
The legal minimum level of contributions is based on what is known as qualifying earnings. This is a band of worker’s gross total earnings including bonuses, commission, holiday pay, maternity and paternity leave and anything else they’re paid in relation to their work.
For the 2019/20 tax year the qualifying earnings band has been set at anything over £6,136 and less than £50,000. It’s reviewed every year by the government.
So if a worker earned £16,136 a year their qualifying earnings would be £10,000. We and our workers would need to pay a minimum percentage of this amount into your retirement pot.
Minimum contributions are set at 8 per cent of a worker's qualifying earnings. Of which we need to pay at least 3 per cent, although we can pay more if we want to.
3 per cent of £10,000 is £300, so we would effectively be giving workers £300 a year to put towards their retirement pot. Workers put in £400 and get £100 in tax relief if they’re eligible, meaning £800 would go towards their pot each year before charges.

7. Retirement funds designed around workers
13 April 2019
Retirement funds designed around workers
Nest Retirement Fund
Nest Retirement Fund
Nest Retirement Fund
When workers join Nest, their money goes into a Nest Retirement Date Fund. These funds have been designed to help them put money aside for retirement. They aim to give members a steady return in the long term so their money is ready for when they want to take it out of Nest. They don’t have to do anything, just keep on contributing.
Nest takes a different approach to protecting and growing members’ money depending on their age and how long they have until retirement.
If members are in their 20s they’ll probably be new to being in a pension scheme. Nest concentrates on helping them establish their retirement pot in these years.
When they’re in their 30s, 40s and 50s Nest concentrates on growing its members’ retirement pots. It’s possible that they’ll see some ups and downs in the total value of their retirement pot in these years. For the most part, though, their retirement pot will grow steadily.
When they’re about 10 years away from when they want to take their money out of Nest the focus shifts to protecting the value of their retirement pot so they don’t lose out to unexpected events.
There’s a Nest Retirement Date Fund for every year that members could choose to take their money out of Nest. Having a fund for every year means that no matter what year they plan on retiring they’ll have an equal chance of getting a good result.
When workers join they’ll be automatically assigned a Nest Retirement Date Fund based on the age they’re entitled to the State Pension. They can change this at any time using their online account.
For example, they might tell us they expect to take their money out in 2056, 2040 or If they plan to take their money out in 2056, Nest will invest their retirement pot in the Nest 2056 Retirement Fund. If they plan to take it out in 2040, Nest will invest it in the Nest 2040 Retirement Fund and so on.
They don’t need to make any decisions themselves if they don’t want to. Our investment experts will carefully manage the fund that their retirement pot is invested in.

8. Nest’s other fund choices
13 April 2019
Nest’s other fund choices
Nest offers choice for those who want it
Nest Sharia
Fund
Nest Higher
Risk Fund
Nest Ethical
Fund
Nest Lower
Growth Fund
Nest Pre-retirement
Fund
Nest believes that their Retirement Date Funds are the best option for most of their members.
However, Nest understands that some people have preferences about what happens to their money. For these people, Nest has a range of fund choices that let members decide how their money is invested.
These have been set up for people who want a different approach to risk than the Nest Retirement Date Funds or those who have strong feelings about how their money should be invested. It’s quick and easy for members to choose a different fund using their online account.
They can find out more about Nest’s other funds on Nest’s website, nestpensions.org.uk/otherfundchoices

9. Taking money out of Nest
13 April 2019
Taking money out of Nest
Our employees' retirement pot is there to help them once they have retired, however they can take their money out at any time after age 55.
In some cases, if a member suffers from ill-health, they may be able to take their money out early.
If a member tells us when they plan to take their money out we’ll try to make sure it’s ready for them.
Members can take their money out at any time after reaching age 55. They can change the year they plan to take their money out if they want, they just need to let Nest know through their online account.
They might be able to buy a retirement income or take some or all of their pot as cash when they take their money out of Nest.
If they suffer from ill-health, some members 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. Taking money out of Nest
13 April 2019
Taking money out of Nest
Nest currently offers members the option to take their money:
in cash, partially or in full
buy a guaranteed income through an annuity provider of their choice
transfer their pot to another provider to access other options such as investment drawdown
Members can take their money out at any time after reaching age 55. They can change the year they plan to take their money out if they want, they just need to let Nest know through their online account.
They might be able to buy a retirement income or take some or all of their pot as cash when they take their money out of Nest.
If they suffer from ill-health, some members 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.

11. Pension pot consolidation
13 April 2019
Pension pot consolidation
From UK registered pension schemes, Nest accepts:
transfers of DC benefits.
transfers of pension credits following a divorce.
early leaver cash transfers sums.
The minimum amount Nest accepts for transfers in is £50, except for pension credit transfers.
Transferring money in and out of Nest is a simple online process. Bringing existing pots you may have together into Nest can make it more straightforward to manage your pension savings.
From UK registered pension schemes, we accept:
transfers of DC benefits
transfers of pension credits following a divorce
early leaver cash transfers sums
The minimum amount we accept for transfers in is £50. This doesn’t apply to transfers of pension credits awarded a result of a pension sharing order granted on divorce or at the end of a civil partnership.

12. Transferring money in and out of Nest
13 April 2019
Transferring money in and out of Nest
Transfers in
Transfers out
No charge for transfers into Nest
We only charge standard 0.3% AMC
Check fees or charges with your other provider
Minimum transfer amount - £50
No charge for transfers out of Nest
Check fees or charges with your other provider
We don’t charge for transfers into or out of Nest, but it’s important to check on any charges that may be applied by your other provider. We’ll only charge our standard 0.3 per cent annual management charge to the value of your transfer.

13. What’s going to happen? Log in
13 April 2019
What’s going to happen?
Log in
We’ll send 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
Your team doesn’t have to do anything right now. We’ll be in touch with them soon telling them more about their new workplace pension scheme and the different options available.
They may then be automatically enrolled depending on their age and salary.
When workers are enrolled Nest will send them a welcome pack. Their welcome pack will contain a personalised letter, brochure and forms giving them the information they need to understand Nest. It will include their Nest ID so they can start using Nest online.
They’ll be able to switch on their online account, find out the value of their Nest retirement pot, change their details and access a range of information and online tools.

14. What if workers are automatically enrolled and want to opt out?
13 April 2019
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 phone
By post
We understand that it might not be the right time for workers to start saving for their retirement. If they’ve been automatically enrolled and don’t want to become a member of Nest just now they can opt out within the opt-out period. They can also stop contributing whenever they want.
The opt-out period is normally one month after a worker has been enrolled by their employer. For Nest, it begins when workers receive their Member welcome pack, around four days after we’ve enrolled them. At this point they’ll receive their Nest ID.
There are three ways they can opt out:
Online - entering the unique ID from their welcome pack and opting out using a simple online process.
Using Nest’s automated telephone system.
Calling Nest’s contact centre to ask for a paper opt-out form. They’ll need to sign the form and give it to us.
Remember that if they decide to opt out they’ll miss out on our contribution and tax relief from the government.

15. What you need to do Raise awareness and understanding.
13 April 2019
What you need to do
Raise awareness and understanding.
Don’t offer financial advice.
Don’t encourage your team to opt-out.
- Discuss the workplace pension reforms and Nest with your team to raise awareness and understanding
- Be careful not to give your team financial advice – more information is available at thepensionsregulator.gov.uk
- It’s your legal duty not to encourage your team to opt-out
- For guidance on talking to your team about pensions visit nestpensions.org.uk/communicationmaterials

16. Workers need to keep their details up to date
13 April 2019
Workers need to keep their details up to date
Check workers have a valid National Insurance number.
Ask them to keep their details up to date using their online Nest account.
Remind them to tell Nest who they want their pot to go to if they die before taking their money.
Tell them where to go for more information.
- 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

17. Where to go for more information?
13 April 2019
Where to go for more information?
For more information visit:
nestpensions.org.uk
thepensionsregulator.gov.uk
dwp.gov.uk
To find out more about how the workplace pension reforms and Nest affect your workers, speak to us.
You can also find out more information at:
nestpensions.org.uk
thepensionsregulator.gov.uk
Any questions?
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