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Pensions and Umbrella companies – what’s the deal?

The Government wants to encourage all workers to save for their retirement. Auto Enrolment requires that every employer must automatically enrol workers into a workplace pension scheme if they:

✔ Are aged between 22 and State Pension age

✔ Earn more than £10,000 a year

✔ Work in the UK

Therefore, as an employer, Clipper Contracting have a legal requirement to automatically enrol its eligible jobholders into a workplace pension scheme.

Understood. So what is the process?

· Clipper Contracting Group Ltd has elected to defer automatic enrolment for the first three months of your employment.

· The end of the three month period is known as the Deferral Date.

· On the Deferral Date, Clipper Contracting Group Ltd will automatically enrol any worker into the Nest Pensions Trust. The first pension deduction is taken and displayed on the payslip.

· Clipper also send a letter to the worker to let them know they have been enrolled in to the pension.

· The following week, the worker will receive a Welcome Pack from Nest Pensions.

Key points about Nest Pensions

1. They are the largest UK pension scheme by number of members, with 11.3 million members and over 900,000 employers having signed up to be part of the scheme.

2. They were set up by the UK government and are government backed

3. Members have one pot for life. If a member has a Nest pension pot through an employer and then moves to another employer using Nest, they will automatically combine the contributions from the two employments into the one pot. Nest do this by matching surname, date of birth, gender and National Insurance Number.

4. They practise responsible investment – investing in a way that is good for the planet but also to make money for their members.

Can I opt in earlier than the deferral date?

Yes – you can opt in as long as you’re eligible or entitled at any time from your start date by emailing quoting “I confirm I personally submitted this notice to join a workplace pension scheme” or in writing to The Payroll Department, Clipper Contracting Group Ltd, 1 Widcombe Street, Poundbury, DT1 3BS.

Can I opt out of the scheme?

Yes – you have to be enroled in the scheme before you can opt out. Once you have been enroled, you will receive a Welcome Pack from Nest Pensions that details how to opt out.

  • You can do this by going to and following the instructions.

  • Alternatively, you can call Nest on 0300 020 0090.

  • Once you have enrolled into the scheme, you have one calendar month during which you can opt out and get a full refund of any contributions made.

We hope this clears up any questions, but if you do require any further assistance we'll be more than happy to help - call us on 01305233170.

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