Focus on Nest: top 3 tips for managing your clients’ auto enrolment pensions with Nest

22nd Nov 2021
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If you run clients’ payroll you are probably also managing their Nest pension schemes for them. Here’s how to manage them efficiently. 

In a past life, PensionSync’s David Hilton and Dan Donovan worked together on the launch of Nest, setting up schemes for some of the UK’s largest employers and helping prepare Nest for the challenge of onboarding vast numbers of smaller employers. 

These are some of Dan's top tips for the SME end of the market:

1. Keep it simple

Nest uses “Groups” to arrange workers. These define when employees’ contributions should be paid to Nest and what the minimum and maximum contribution rates should be. 

Where possible, SMEs should stick to having as few Groups as possible - ideally just one. Multiple Groups can cause additional administrative complexity, and create friction with your payroll software if the scheme details aren’t perfectly in sync.  

2. Get organised

Managing multiple Nest schemes is no small task. As well as submitting the enrolments and contributions, you need to make sure you approve your clients’ payments on time and you also need to keep on top of employees’ opt out requests and other changes. 

You need a proper management process in place to keep on top of all the tasks and you should consider how your payroll software package can help you with this.

3. Automate if you can

Nest has an open API, which means that any payroll software can build an integration into it. These payroll integrations save you from having to manually export and upload CSV files into the Nest website, which can quickly become an onerous task. 

The best integrations reduce Nest’s 3-step enrolments > contributions > payment process (with a processing time-lag between each step) to a single action, whether that be a button click, a file drop, or an invisible back-end sync.

If you are finding it difficult to administer your clients’ Nest schemes please feel free to reach out to the PensionSync team for a chat. We have a great deal of experience and know-how when it comes to Nest, and we’re always happy to help. 

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