Nest’s preparation for automatic enrolment has been hit by higher than average levels of staff turnover.
The Government-backed pension scheme’s staff turnover has been 17 per cent during 2011/12, compared with an industry average of around 15 per cent.
Nest says it has struggled to retain staff this year partly as a result of a two year wage freeze imposed by the Government.
Nest chairman Lawrence Churchill says: “It has been a tough year, with staff turnover above both industry and the trustee’s risk appetite.
“We are looking at ways of tackling this, including consulting with DWP on how this can be addressed for the future.”
Chief executive Tim Jones (pictured) says: “As a public body, we have been through a two-year pay freeze which has impacted our ability to retain some people, but despite the challenges we are finishing the year on time and on budget, due to the determination and commitment of our people.”
People, property and CSR director Clare Smithson says: “The majority of our staff are now on permanent contracts and we have established London as our future medium term location to provide stability. Nest is also establishing a people, infrastructure and engagement programme.
“This is designed to retain and motivate staff within a framework that is appropriate to a public sector organisation and subject to clear oversight from the remuneration committee.
“Nest is also talking to DWP about how Nest can better link reward to performance, in line with guidelines for public sector organisations.”
Nest’s annual accounts for 2011/12, published today, reveal the scheme received a £51m loan from the Department for Work and Pensions last year.
This is on top of the £79m loan Nest drew down in 2010/11 and the £35m it received in in 2009/10. The scheme has received £171m in Government loans in total.
The loans will be paid back through a 1.8 per cent contribution charge. Nest members will also have to pay a 0.3 per cent annual management charge.