Making Employee Entitlement Contributions

 

NEST does not determine the level or extent of contributions. Contributions are calculated in accordance with the rates of pay, ordinary hours and leave entitlements contained in relevant employment agreements. NEST offers various payment options to employers.

 

Method 1 - Term transfer (transferring entitlement liability over a nominated time period)

 

This option understands that employers may not wish to transfer the whole of their employee entitlement liability into NEST at once. Employers nominate a term that meets their financial objectives (e.g. 12 months, 24 months etc). NEST then calculates a monthly contribution based on that term. E.g. The first contribution in a 24 month term would equal 1/24 x the employer’s total current entitlement liability; the second contribution would be 2/24 x the total employer’s current entitlement liability, less the current NEST balance.

 

Each month an employer simply submits a current payroll report for their organisation (which in most cases is easily accessible via the employer's payroll system). NEST will then allocate each employee's entitlement in accordance with the payroll report provided and produce a monthly contribution statement for payment.

 

Method 2 - Immediate transfer (transferring entire entitlement liability at once)

 

This method suits employers who wish to transfer all currently accrued entitlements into NEST in one easy transaction. Employer who use this option often make a one off payment representing the existing liability on their balance sheet and then continue monthly contributions into the future representing new accruals.

 

Employers simply provide their payroll report plus a payment representing the total employee entitlement liability. NEST will establish member accounts for each employee. Employers then make monthly contributions in accordance with each months payroll report.

 

Method 4 - Fixed monthly payment

 

With this method an agreed fixed payment will be deposited each month into NEST to bring all past accrued entitlements into NEST over a period of time.

 

Whichever method is chosen, NEST will work with you to make it as easy as possible. Please contact NEST for more information on any of these methods.