The government-sponsored National Employment Savings Trust (NEST) has confirmed that close to 100 employers have committed to use its pension scheme one year ahead of the introduction of auto-enrolment into workplace pensions

Designed as a default option for employers looking for an easy and reliable provider, NEST has been showcasing the experiences of some of the 25 firms that have been using the plan in its trial period.

Ease of use is a key selling point for NEST, and this was emphasised in each of the case studies.

Car parts maker Metal Assemblies from West Bromwich is one of the 25 employers currently undergoing a trial run. Its chairman Stuart Fell praises NEST for "eliminating the problems we have to face from an administrative view."

Likewise Dave Barras, Chief Executive of Positive Support in Tees, a group that helps adults with learning difficulties in Teesside, features in a positive YouTube assessment of a NEST trial. Barras says that he likes NEST "because it offers a pension scheme which is designed for the type of organisation we are, and it recognises the need to use plain language that people can understand."

He added: "I think that empowers people to take a decision on whether they want to be part of a pension scheme."

While client confidentiality issues prevent NEST from detailing all the willing employers, it points to companies of all sizes expressing an interest in the plan. These include well-known national chains like Travelodge and Gondalo (owners of Pizza Express) along with a number of small to medium sized manufacturers.

Padding NEST or cutting down the auto-enrolment tree?

While NEST is confident of becoming a key pillar of the occupational pension landscape after the phasing in of auto-enrolment starts in October 2012, lively debate continues on legislative issues behind the reform.

At the same time as NEST was unveiling its case studies, the House of Commons Work and Pensions Committee were meeting to discuss its work to date.

David Pitt-Watson, chairman of Hermes Focus Asset Management and renowned low-fee advocate, told MPs that restrictions such as the £3,600 annual contribution cap and no facility to transfer pension pots into NEST threatens to limit the benefits of auto-enrolment.

Pitt-Watson said that the contribution cap could cost tax payers £100 million to provide extra retirement support if NEST fails in it mission of turning Britain into a nation of pension savers.

Pitt-Watson told the committee that NEST "needs to be a low-cost scheme that works for employees. There are a number of restrictions on it that really hamper what NEST can do."

The committee then questioned whether removing these restrictions would compromise the restrictions on state aid, which the Government needs to follow. Pitt-Watson said he believed this would not be a problem as these rules make allowances for general economic interest and "it seems clearly in the economic interest that people have a low cost-effective route for their savings."

Pitt-Watson also said that the restrictions on NEST heighten the risk of employers auto-enrolling staff into poor value pensions as they may not find the scheme suitable for high earners.

The Cabinet Office is currently looking at a report that recommends delaying the start of auto-enrolment or exempting small companies, adding further complexity to the politics behind NEST.

Adrian Beecroft, head of private equity company Dawn Capital, was briefed with exploring ways to ease regulation on companies. Although there has been no official government reaction to the report, Prime Minister David Cameron and Chancellor of the Exchequer George Osborne are both known to be keen on cutting regulations to help companies in difficult economic times.

Steve Webb, the minister of pensions, has said publically that he would not support any delay to the auto-enrolment programme, however.

dbillingham@wilmington.co.uk