FAQs

Frequently Asked Questions

For Employers

Why is Auto Enrolment Being Introduced?
Currently the state pension system and the present voluntary system of private pension saving has been found to be not fit for purpose, resulting in a pension provision situation which is increasingly inadequate and unequal. Auto Enrolment pensions are being introduced to address this.
What If I Have An Existing Pension Scheme?
You must check with your existing pension provider to ensure that it is a qualifying scheme. For any existing scheme to qualify, the contributions paid by both the employee and employer at least match the minimum contributions specified for Auto Enrolment.
What Pension Contributions Do I Need To Make?
Both you and your qualifying employees will contribute to the employee’s pension pot.

Employers Employee Minimum Contributions
Up to 5th Apr 2018 1% 1% 2%
From 6th Apr 2018 2% 3% 5%
From 6th Apr 2019 3% 5% 8%

These contributions are based on the bare minimum employer contributions, but so long as the ‘Minimum Contributions’ are met, the amount going into the pension will be enough. For example, the minimum employer contribution up to October 2017 is 1% and the minimum total contributions are 2%, so the employer can choose to contribute the whole 2% and the employee to contribute 0%. These percentages and dates could be subject to change.

What Do My Fees Pay For?
The £5 + vat per employee per month fee covers all the set-up and implementation for the Nurture system including ongoing support. These fees do not cover your actual pension contributions.
Do I Have To Register With ‘The Pensions Regulator’?
Yes, employers MUST register with The Pension Regulator to confirm they have complied with Auto Enrolment. Although this is something you need to complete yourself, we give you full instructions.
What Should I Do Now?
If you run your own payroll ‘in-house’, talk to Nurture. If your payroll is run by an agent, find out if the agent will be providing any Auto Enrolment Support – and whether they have contacted Nurture. If not, ask them to call us on 0800 080 39 39
What Shouldn’t I Do?
Encourage anyone to opt out of the pension scheme or base your recruitment process around people willing to opt out.
What Pension Fund Are My Company And My Employees Paying Into?
Payments will go into The ‘SSgA MPF Balanced Index Fund’, Nurture’s carefully selected default fund operated by State Street Global Advisers. State Street Global Advisers (SSgA) is the world’s second largest fund manager, managing around £2Tn of assets for individuals, corporations, institutions, charities, and Government Bodies.  The Managed Pension Fund range consists of over £34Bn of assets managed for UK pension funds for company pension schemes sponsored by many large employers.  The Managed Pension Fund range of funds aim to provide access to a wide range of investment markets with very low tracking error, replicating as far as possible the experience of being invested directly in the market.  The Balanced Index fund of funds combines a number of underlying funds cost effectively and efficiently, aiming to capture market returns at a risk level appropriate for a long-term investor. A valuation of your pension can be obtained via your account 24/7. More information on the fund can be found on the SSgA MPF Balanced Index Fund fact sheet via the portal or through the Nurture Investment Guide.

For Employees

What Contributions Do I Need To Make?

Both you and your employer will contribute to your pension pot.

Employers Employee Minimum Contributions
Up to 5th Apr 2018 1% 1% 2%
From 6th Apr 2018 2% 3% 5%
From 6th Apr 2019 3% 5% 8%

These contributions are based on the minimum employer contributions, so long as the ‘Minimum Contributions’ are met, your employer can choose to contribute more. For instance, the minimum employer contribution up to October 2017 is 1% and the minimum total contributions are 2%, so your employer can choose to contribute the whole 2% and the employee to contribute 0% – but you will always be guaranteed the full amount (in this instance 2%). These percentages and dates could be subject to change.

Will I Be Automatically Enrolled?
Your employer is now legally obliged to Auto Enrol into a workplace pension by a certain date based on the size of the company. To find out more about these dates and whether you are eligible please see Employees Guide.
What If I’m Self-Employed Or Run My Own Company?
If you are self-employed or the sole director of your own company and have no employees, you have no duties under Auto Enrolment legislation.
Where Will Pension Contributions Be Invested?
Payments will go into The SSgA MPF Balanced Index Fund, Nurture’s carefully selected default fund operated by State Street Global Advisers. State Street Global Advisers (SSgA) is the world’s second largest fund manager, managing around £2Tn of assets for individuals, corporations, institutions, charities, and Government Bodies.  The Managed Pension Fund range consists of over £34Bn of assets managed for UK pension funds for company pension schemes sponsored by many large employers.  The Managed Pension Fund range of funds aim to provide access to a wide range of investment markets with very low tracking error, replicating as far as possible the experience of being invested directly in the market.  The Balanced Index fund of funds combines a number of underlying funds cost effectively and efficiently, aiming to capture market returns at a risk level appropriate for a long-term investor. A valuation of your pension can be obtained via your account 24/7. More information on the fund can be found on the SSgA MPF Balanced Index Fund fact sheet via the portal or through the Nurture Investment Guide.
How Can I Check How My Pension Is Doing?
You will have access to your own secure online ‘portal’ for the scheme where you can check your contributions, pension value and any other information you may need. Our aim is to put you in control of your workplace pension.
What If I Need Some Advice About My Pension?
Nurture Pensions can put you in touch with a qualified Financial Adviser. They can answer all your questions, help you decide about further pensions and show you how your new workplace pension can work with any existing pension schemes you may have. You may be entitled to an initial free consultation with this adviser.
How Much Does It Cost Me?
All employees pay the same charges irrespective of the size of their retirement fund or contributions made. These charges can be broken down into two components:

  • An annual pension administration fee of 0.59% of the total value of your retirement fund and
  • A contribution charge of 1% of each new payment made into your retirement fund

For example, if your existing retirement fund is worth £10,000 the annual pension administration fee would total £59 and if £500 of payments were paid into your fund over the year the contribution charge would total £5. The total cost to you for the year would be £64 which would equate to an overall annual management charge (AMC) of 0.64% of the value of your retirement fund. There is no charge made by Nurture for the cost of “transferring in” an existing pension scheme from a previous employer.

What Pension Fund Are My Company And My Employees Paying Into?
Payments will go into The ‘SSgA MPF Balanced Index Fund’, Nurture’s carefully selected default fund operated by State Street Global Advisers. State Street Global Advisers (SSgA) is the world’s second largest fund manager, managing around £2Tn of assets for individuals, corporations, institutions, charities, and Government Bodies.  The Managed Pension Fund range consists of over £34Bn of assets managed for UK pension funds for company pension schemes sponsored by many large employers.  The Managed Pension Fund range of funds aim to provide access to a wide range of investment markets with very low tracking error, replicating as far as possible the experience of being invested directly in the market.  The Balanced Index fund of funds combines a number of underlying funds cost effectively and efficiently, aiming to capture market returns at a risk level appropriate for a long-term investor. A valuation of your pension can be obtained via your account 24/7. More information on the fund can be found on the SSgA MPF Balanced Index Fund fact sheet via the portal or through the Nurture Investment Guide.