As a result, all staff are required to be automatically enrolled in a pension scheme when they join a firm.
The pension scheme involves a portion of one's earnings being put into a fund by both the employer and the employee, in order to save money for their retirement.
In practice, employers were more successful at finding alternative providers than the government had expected, and the restrictions placed on NEST[7] so that it didn't compete with other providers are now deemed unnecessary by the government, hence they were to be removed in April 2017.
[8] The Act also places requirements on defined contribution pension providers who have a choice of funds in which employees can invest; there must be a default option, which must be sensible, for employees who are automatically enrolled, and do not provide any preference about which funds they wish their contributions to be placed in.
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