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This bodes well for the Governments Auto Enrolement plans


CliveH

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The new Auto Enrolment laws state that all employers must put in place and contribute to a work place pension scheme - large employers are already "on board" and smaller employers will progressively be over time. Over all this is a good thing but the "default" option for the fund investment is the Government inspired and set up "NEST".

 

Which sadly has just lost £1.4M to fraudsters.

 

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"The National Employment Savings Trust (Nest) has been hit by a £1.4 million fraud, it has revealed in its accounts.

 

According to its annual scheme report the pension scheme lost £1.4 million as a result of a ‘supplier bank mandate fraud’ and a 'serious control failure' within Nest.

 

It said: ‘In January 2013 we were notified that there had been an incident of fraud. This fraud was directed at Nest Corporation, resulting in a loss of £1,446,000 from our operating budget. It was of a type known as mandate fraud, involving the diversion of a supplier payment. No money was taken from members’ retirement pots.’

 

Nest chief executive Tim Jones has forfeited a potential bonus as a result.

 

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Hardly fills one with confidence does it. :-S

 

 

 

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