The National Employment Savings Trust (Nest) is a workplace pension scheme designed around the needs of employers and workers to support automatic enrolment. Nest offers a high quality, easy to use way to save for retirement and is now the largest defined contribution pension scheme in terms of members. Nest currently has over 12 million individuals saving with over £30 billion in assets under management.
Nest Corporation is the Trustee of the Nest Scheme and a Public Corporation based in London. Though Nest Corporation is independent from government, it is accountable to Parliament through the Department for Work and Pensions (DWP). This means that there are no shareholders or owners. The Scheme is run in the interests of its members and members are at the heart of Nest.
We are currently recruiting for five Non-Executive Board members: three with investment skills; one with customer data skills; and one with risk management skills.
Members with no additional duties; 40.5 days per year. Members with additional Chair duties of a Nest committee; 46.5 days per year.
Brendan McCafferty, Chair
Thank you for the interest you’ve shown in becoming a non-executive director at Nest Corporation. It’s an exciting time to join and shape a financial organisation of national importance.
Nest is a purposeful organisation and has grown substantially since being set up by the government to support its automatic enrolment policy. Today we’re one of the largest pension providers in the UK, serving over 12 million members – that’s more than one in four of the UK working population (age 16-64).
Our first member started saving in 2011 and their first contribution was £19. We now manage over £30 billion on behalf of all our members, and this is increasing at a phenomenal rate - every month we currently receive over £500 million in new pension contributions.
Nest is unique. We largely serve low to middle income earners. We have a public service obligation to accept any employer who wants to use our Scheme for automatic enrolment. Over 1.1 million employers have registered with us so far, ranging from one-person sole traders to major supermarkets. That’s why we provide a straightforward pensions service that any employer in the country can easily use to meet their legal duties.
Nest is entering the next stage of its development. We will soon start producing significant annual surpluses and will no longer need to take additional government funding. Our scale advantage means we can invest in ensuring that members benefit from world class investment solutions, and service, delivered at low cost. We do this in a rapidly changing market. Nest can take its place as a significant financial institution, along with all the advantages of being a Public Corporation, to make decisions in the best interests of its members. We are a public body and so ensuring we meet our commitments in managing public money and engaging with government positively and openly, ensure the trust and respect that Nest has earnt in becoming the organisation that it is, are maintained.
I hope it’s clear how important Nest is to people’s lives and their futures. As we continue to grow in scale and significance, new Board Members will contribute to our ongoing success and our essential purpose – to help millions enjoy a better retirement.
Immediate challenges
New Board Members will help steer Nest through the next phase of its evolution and growth strategy, including Nest’s transformation to become a bolder, purpose-led organisation, which puts customers at the heart of decision making.
Nest is on course to be a top 10 global pension fund by the end of the decade with a projected £100 billion of assets in service of members. The Board would like to set a new level of ambition for Nest, building on its excellent momentum and centred around a refreshed purpose. To this end Nest has undertaken a strategic review of its approach to delivering for members, including how to develop services for members once they reach retirement age.
Improving customer-centricity remains a key priority and challenge across Nest, with the focus on ensuring that Nest understands customers’ situations, perceptions and expectations more fully, particularly when making decisions. Nest is also in the process of reviewing and implementing a data strategy to ensure that we can deliver a leading digital retirement savings, financial wellbeing and retirement proposition.
As Nest continues to grow and evolve, so too does the number, complexity and severity of risks that it faces. There is therefore a need to continually enhance and evolve risk management across the organisation.
Developing our investment strategy
Our scale allows us to access ever more attractive and sophisticated investment opportunities. We are making great strides to give many of our members access to world-class investments for the first time – this includes harnessing the capabilities of leading fund managers and more recently, through accessing private markets.
Nest Scheme’s investment strategy is to use a ‘fund-of-funds’ model, working with multiple external investment managers with distinct mandates for different asset classes. Nest has continued to extend the range of asset types in the Scheme’s investment portfolio, which includes just under £0.5 billion invested with newly appointed private equity managers. These new mandates have allowed Nest to invest in innovative, privately owned companies which are growing and seeking new capital to help fund their expansion, both in the UK and globally. Nest looks to put a proportion of the Scheme’s portfolio in illiquid investments offering additional diversification and alternative return opportunities for strong, steady risk-adjusted returns over the long term.
Nest also has clear responsible investment commitments. We have ambitious targets to be a ‘net-zero’ investor by 2050 at the latest, with a shorter-term target of halving the carbon footprint of the Scheme’s investments by 2030.
New Board Members will help to oversee progress towards our multiple investment goals and to keep pace with the complex and fast-moving governance requirements in this area.
The importance of diversity, equity and inclusion
Diversity, equity and inclusion matters at Nest Corporation. We represent millions of workers as a Trustee, so it’s important for our organisation to reflect this diversity. It will help to ensure we can develop solutions that meet the needs of a broad membership. We’re committed to building a diverse workforce, including at executive and board level. Nest also recognises the importance of diversity of thought and other forms of neurocognitive variation.
Nest believes that people are their greatest asset, and truly believes that the diversity of the workforce and an inclusive culture are essential to success. This is why Nest welcomes, enhances and celebrates diversity. The more the workforce and Board members reflect the membership, the better able Nest will be to understand and meet the needs of members.
Joining the Board
As you read through this pack, we hope it’s clear you have an opportunity to join a special organisation. Not only will you influence millions of lives and futures, you’ll also be part of a positive and inclusive culture that reflects our strong values.
We are seeking up to five new Board Members. Given the substantial growth of assets under management and the increasing significance of the investment function, Nest is seeking three roles with specific investment skills and experience. Nest is also seeking one role with expertise in risk management and the remaining role will require skills and experience in customer and data.
We want to reach as many people as possible interested in applying for these roles
and ensure that potential candidates who may be unsure about applying can have their questions answered. As you’ll see later in this pack, we’re hosting a webinar on 7 February 2024 where you can find out more about Nest and our selection and application processes.
Whether you’re an experienced or first time non-executive director, or even if you do not think you meet 100% of the role criteria, we encourage you to attend the webinar to ask any questions and to complete your application.
Peter Schofield, DWP Permanent Secretary
I want DWP and our arm’s-length bodies to be places where everyone, whatever
their background, feels encouraged to achieve their potential. I believe attracting talented individuals from diverse backgrounds, including regional diversity and the
full range of socio- economic groups, will allow us to be better able to provide the
best possible support to those we serve.
DWP continues to support Cabinet Office in working towards 50% of all public appointees to be female and 14% of all public appointments to come from ethnic minority backgrounds. We value diversity and inclusion and actively encourage and welcome applications from everyone.
If you are looking for an opportunity to use your talents to make a difference to the
lives of millions of your fellow citizens, we look forward to hearing from you.
Board Members will be expected to:
- Contribute to Nest’s Board meetings and discussions, drawing on their field of expertise;
- Contribute to and review the strategic direction of the Corporation and the scheme;
- Oversee the performance of the Chief Executive and their team in delivering Nest’s functions efficiently and effectively;
- Monitor the extent to which the Board is meeting its objectives and targets;
- Ensure effective reporting of the Board’s reporting of its activities to the Secretary of State in the annual report;
- Evaluate the effectiveness of Nest’s internal financial controls;
- Act as a confidante and counsel to the Nest Chair, balancing a challenging approach with being supportive;
- Contribute through ad hoc involvement with the executive team on specific areas of interest/priority on behalf of the Board;
- Where appropriate, represent Nest with external stakeholders, and help it build relationships with key private and public sector players; and
- Contribute their own professional experience to guide the development of Nest in a way that is supportive, collegiate and adds value.
Board Members may also be asked to Chair or participate in at least two committees of the Board, including:
- Audit Committee
- Risk Committee
- Investment Committee
- Nominations and Remuneration Committee
Information about these committees can be found at
The Nest Corporation Governing Body, referred to as ‘the Board’, is responsible for governing Nest Corporation, which includes setting the strategic direction and establishing the purpose and values of Nest. The Board is also responsible for overseeing the implementation of the strategy and the day-to-day operation of Nest, holding the Chief Executive Officer and Executive team to account, and providing support and challenge as appropriate.
The Board must take decisions drawing on two key sources of power: The Pensions Act 2008, which sets out its functions and powers as a Body Corporate and the Scheme Order and Rules, which sets out its powers as a Trustee. When taking a decision, we must be clear that we have the power to do so and the source of that power.
Board Members work closely with the Executive Team. The Chief Executive Officer has responsibility for the day-to-day operations and management of both Nest Corporation and the Nest pension Scheme. Nest Corporation’s Board Members exercise powers but delegate a broad authorisation to the Chief Executive to ensure the efficient and effective day-to-day operation of Nest Corporation. It is also supported by four committees: Audit, Risk, Investment, and the Nominations and Remuneration Committees.
The Board must have between nine and fifteen Board Members (including the Chair) as per the Pensions Act 2008. All Board Members are appointed by the Secretary of State for Work and Pensions. These appointments are regulated by the Commissioner for Public Appointments.
The Board currently meets around ten times a year and currently comprises the Chair and ten Board Members, two of whom, the Chief Executive Officer and Chief Financial Officer, have executive responsibilities. The Board ensures that effective arrangements are in place to provide assurance on risk management, governance and internal control.
New Board Members will help to shape and evolve the governance model in the coming years. It must continue to follow the highest standards of best practice and meet the challenges faced by an organisation that’s rapidly growing in scale and complexity.
