From 2012 employers will be required to automatically enrol all eligible job holders into a qualifying workplace pension and to make minimum contributions into it.
Three parties are working together to implement these workplace pension reforms:

• the Department for Work and Pensions (DWP) is responsible for the policy and legislation
• the Pensions Regulator (TPR) is responsible for maximising employers' compliance with their new duties
• the National Employment Savings Trust (NEST) Corporation is the trustee body responsible for overseeing NEST

All jobholders in Great Britain aged at least 22 years old who have not yet reached State Pension age and are earning more than £7,475 (in 2011-12 this is aligned with the income tax personal allowance) will need to be automatically enrolled into their employer's workplace pension.
Jobholders aged between 16 and 22, and between State Pension age and 75 who are earning more than £7,475, will be able to opt in to their employer's workplace pension.
Those earning below £7,475 a year may opt in to their employer's workplace pension.

Employers will be able to choose the pension scheme(s) they want to use provided the scheme(s) meet certain quality criteria - this includes their current scheme. These may be based on contributions or benefits people receive, eg final salary schemes.
A new simple, low cost pension scheme, NEST (National Employment Savings Trust), formerly known as personal accounts, will be introduced as one such qualifying scheme. The intention is that NEST will operate like any other trust based, multi-employer defined contribution occupational pension scheme, but it will be focused on a target audience of low to moderate earners.
If employers choose a defined contribution scheme they will need to contribute 3 per cent on a band of earnings for eligible jobholders - between £7,475 and £33,540 a year (this figure will be updated for 2012 and is pending legislation). This will be supplemented by the jobholder's own contribution and around 1 per cent in the form of tax relief. Overall contributions will total at least 8 per cent for this type of scheme.
To help employers adjust gradually the plan is to phase in the employer contribution levels - starting at 1 per cent, then 2 per cent, and finally 3 per cent. The jobholder's contribution will be phased in the same period.

The changes are planned to start from 2012. The plan is to stage in auto enrolment over a period of time, starting with large employers, then medium and then small. To help employers adjust gradually the plan is to phase in the employer contribution levels - starting at 1 per cent, then 2 per cent, and finally 3 per cent. The jobholder's contribution will be phased in the same period.

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