Government papers: National Employment Savings Trust Corporation: Tailored review

The tailored review of the National Employment Savings Trust (NEST) Corporate, which is the sole trustee of the NEST pension scheme, was undertaken by the Department for Work and Pensions to ensure it remains fit for purpose, is well governed and is held accountable for what it does.

Key findings:

• Internal governance processes are effective, but there is a need to strengthen some corporate governance arrangements.
• The NEST Corporation Board is effective but would further benefit from becoming a unitary board of both Executive and Non-Executive Trustee Members.
• There is an ongoing need for the functions of NEST Corporation in its current form as an Arm’s Length Body but its classification should be amended to provide clarity about its status as a public corporation.
• As NEST Corporation’s funding arrangements, core functions and legislative policy framework are refined over time, the appropriate model for the organisation and its strategic objectives should be periodically reviewed, at least at every five years.

The aim of NEST is to ensure that all UK employers have access to a low-cost pension scheme through which they can fulfil their automatic enrolment employer duties under the Pensions Act 2008.