Frequently Asked Questions
Here are some of the most common questions we get asked to help give you more information about NEST. If you have any questions that have not been answered here, please don't hesitate to get in contact with us.
To protect employee entitlements. If employee entitlements are placed within a trust, they are secure regardless of the financial circumstances of the employer.
NEST is a national industry trust fund that is designed specifically to protect employees’ entitlements as they accrue. It is a not-for-profit trust open to employers in any industry.
Employers pay monthly contributions into NEST representing the entitlements of their employees. These entitlements are held on trust until they become payable. Contributions are pooled and then invested. Employees continue to be paid their entitlements from employers when they fall due in the normal manner, with employers claiming any entitlement accrued directly from NEST. Alternatively arrangements can be made for entitlements to be paid directly from NEST to the employee. In the event of insolvency NEST pays all the due entitlements in the Trust directly to the employee.
NEST Nominees Pty Ltd is the trustee of NEST.
There are no direct costs to employers or employees; however the Trustee makes a deduction from investment income earned by NEST to cover all administrative costs, subject to any expenses which are allocated to reserves.
Contributions are pooled and invested in high credit rated funds. These funds must be ‘A’ rated or better by a recognised credit agency to ensure their security.
If the benefits are held in another fund, Yes, with the exception of superannuation and subject to the relevant Employment Arrangement(s). In relation to transferrin current accrued entitlements or liabilities into NEST, please refer to the methods set out here.
In many situations, when a business is sold the new owner cannot or will not guarantee the entitlements of the employees that accrue prior to the transfer of the business. Entitlements within NEST remain protected on change of ownership.
If the new employer is a NEST member, their contributions will continue to be credited to NEST. If the new employer is not a NEST member, the employee’s entitlements will remain in their NEST account until they either claim them or move to another NEST member employer. While held in NEST, these entitlements will continue to accrue investment returns. Any entitlements held on an employee's behalf will accrue investment returns
Yes. If an employee has unclaimed entitlements in NEST after leaving an employer, they can choose to keep them in their account. These entitlements will continue to accrue investment returns.