The Personal Accounts Delivery Authority (PADA) announced today that National Employment Savings Trust (NEST) will be the permanent name of the new national workplace pension scheme known up to now as the personal accounts scheme.

NEST will be a national workplace pension scheme designed specifically for low-to-moderate earners and will complement existing provisions. It is being set up as part of the Government's workplace pension reforms. It will be one of the schemes available for employers to use to fulfil their new duties under the workplace pension reforms, in particular auto-enrolment, due to come into effect from 2012. Under the Pensions Act 2008, employers will be required to auto-enrol eligible workers into a scheme which meets certain criteria and make minimum contributions to the scheme.

Employers will eventually have to contribute a minimum of 3% on a band of earnings, although they can contribute more than this. The total minimum contribution for eligible workers must be 8% (or equivalent) of the band of earnings. This is made up of the employer's contribution, tax relief and the worker's contribution.

The duties will be staged in from October 2012, with largest employers affected first. Contributions will be phased in for employers and employees starting at 1% and increasing gradually to the minimum level. It is expected that it will be 2017 before all employers are fully engaged.