pensions 13
Taking the simple approach to pension auto-enrolment
Over the next five years, millions of workers will see changes to their pay packets as new rules on automatic enrolment in workplace pension schemes come into being. For employers, the challenge of putting the new procedures in place in a timely and cost-effective manner, and ensuring staff understand the options available to them, can be bewildering, writes Alison Dewar of The Business Magazine
Working hard to take the mystery out of the process is the team at One Pension Consultancy, which specialises in providing straightforward advice and expertise built on years of experience.
The team works with a diverse range of businesses, from SMEs with as few as five employees up to large corporates with 9,000 staff.
“It doesn’t matter which sector the business operates in, the common thread is that there will be employees who need to be auto-enrolled into a pension scheme,” said managing partner Duncan Revolta.
“A lot of advisers will try to overcomplicate the issue or suggest standard pension packages but we believe in giving companies flexibility, choice and value for money, as well as providing clear communications so everyone understands what is happening.”
Revolta founded One Pension Consultancy in 2004 and the following year was joined by fellow partners and former colleagues Sarah Walker and Sarah Munro. Since then it has grown to employ 11 staff, with offices in Finchampstead, near Reading, as well as Southampton and Birmingham.
He believes the consultancy is unique in terms of the skills and expertise available and says it fits neatly into the gap in the market between independent financial advisers and large actuarial houses.
Building long-term relationships is important to the team, most of the consultancy’s work comes through referrals and it has clients across the Thames Valley and nationwide. Unlike many organisations, it charges a fixed fee instead of working on commission, believing clients prefer to know exactly how much they will be charged.
All three partners agree that the issue of automatic pension enrolment is the biggest change to hit the UK workforce for decades. Effectively a saving scheme for retirement organised through an
least 12-18 months before implementation in their workplace,” she said.
“The rules are quite complex, our aim is to analyse all the data about employees, filter it down and simplify the process so employers don’t have to worry.”
Walker says the team’s experience and in- depth understanding of the guidelines and compliance issues sets it apart from other pension advisers.
“For many clients we effectively act as the pension department, including fielding enquiries from employees,” she said. “Regarding auto-enrolment we attend regular project planning meetings with our clients to discuss issues such as HR and payroll implications, IT requirements and communication messages for staff. We negotiate with different pension providers and look at the varying options available.
“Data will need to be continually assessed every pay period under the new rules, with information needed such as which employees need auto- enrolment and when; who needs to increase their contributions and why; and which communication must be used for whom. Our aim is to help companies and employees understand the whole process.”
Even those employees who already save in a workplace pension scheme may see changes as the new rules take effect.
Revolta adds: “Typically, some staff will have previously opted into a savings scheme while others chose not to, and there is the added complication that many companies will have various pension schemes in place for different levels of seniority.
“We will review all the existing pension provisions and help businesses decide which solution suits them best, providing good value for employers and delivering a good result for employees too.”
From left: Duncan Revolta, Sarah Walker, Sarah Munro
employer, the new rules are designed to ensure that people make pension provision early on in their working life.
October 1, 2012, marked the first tranche of the process as those working for the UK’s largest companies were signed up. The rolling process is ongoing; in 2013 those employing 500 to 50,000 will be affected and from February 2014 it will start to apply to businesses employing 50-250 staff, eventually tapering down to even the smallest employer.
The pensions regulator is policing the system to ensure that workers are enrolled at the correct time, but Munro believes that although most employers are aware of the changes, there is confusion about what they need to do and when.
“A lot of companies underestimate the time they need to put the necessary processes in place, our view is they should be thinking about auto-enrolment at
THE BUSINESS MAGAZINE – THAMES VALLEY – DECEMBER 12/JANUARY 13
www.businessmag.co.uk
With the pensions regulator threatening to fine those companies who don’t engage with the new process in time, it’s clear that auto-enrolment is one issue which can’t be avoided. And, as the team emphasises – it’s far better to start planning sooner rather than later.
Details:
Sarah Walker 0118-9734434
sarah.walker@onepc.co.uk
Sarah Munro 0118-9734435
sarah.munro@
onepc.co.uk
www.onepc.co.uk
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