There are a number of options available for employers and employees, including:

• What will be the impact of the Pensions reform and the introduction of nest?

Pensions reform is a package of both state and private pension changes, expected to be introduced in 2012, which will completely change the face of the pension industry in the UK. Employers will have new responsibilities to contribute to their workforce's pension plans, and this will have a big impact on their business.

The overall aim of the government's pension reform strategy is to get more people saving for retirement. The Pensions Act 2008 is the second phase of these reforms and sets out new duties for employers. It allows for the establishment of the personal accounts scheme, aimed at low-to-medium earners.

All employers in the UK, small and large, will need to take action to comply with their new responsibilities under the Pensions Act 2008.

• Can I or my business 'Opt out' of nest?

A jobholder who is enrolled (whether this is through automatic enrolment, automatic re-enrolment or exercising the right to opt in) has the right to opt out within a certain period. In this event, the jobholder is treated as if the enrolment that had just taken place hadn't happened.

If a jobholder chooses to opt out of the pension scheme, then the employer doesn't have to pay a contribution on their behalf.

Employers must make sure that they follow the prescribed opt-out process, which will be set out in regulations. They'll have to stop deducting pension contributions from the jobholder's salary, notify the scheme, refund any contributions that were paid during the opt-out period and automatically re-enrol the jobholder every three years.

It's illegal for employers to encourage employees to opt out or give up active membership of the pension scheme – known as inducement – for example by offering them cash or any other benefit.

• How much will employers and employees pay in to nest?

Employers will be required to pay at least 3% of qualifying earnings for those jobholders who don't choose to opt out. They can choose to pay more but the total contributions from employers and jobholders must be at least 8% of qualifying earnings. Contributions can be phased in and may look like this:

	Employer contributions	Jobholder contributions*
Phase 1	1%	1%
Phase 2	2%	3%
Phase 3	3%	5%
*Including tax relief

Phasing in of contributions won't start until the employer responsibilities have been 'staged' in. However, employers may choose to phase in their contributions quicker, or pay higher contributions.

• Will employees be automatically enrolled in nest or are alternatives available?

Employers will have to auto-enrol all their eligible staff into a qualifying scheme, which can be their own private pension or the new nest scheme.

• Can I continue my existing Company Pension scheme?

Employers may decide to choose to have different pension schemes for different employees, but they have to understand and make sure that their existing scheme meets the qualifying criteria.

• What can I do with any frozen/preserved pensions?

Under current proposals, jobholders will not be allowed to transfer in any preserved pensions into nest or transfer nest to other pension schemes.

Jobholders may be able to transfer existing pensions into other personal or occupational pension schemes, though independent advice should always be sought concerning this.

• When will I get my State Pension?

To find your SPA, enter your date of birth and gender into the State Pension Age Calculator and click on Go.

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Useful links

• Pension
  Calculator
• State Pension
  Forecast
• NEST (National Employment
  Savings Trust)
• Financial Services
  Authority