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Niall Ferguson presents 'Optimising processes to minimise administration' at Reward Live Workplace Pension Show 2014.
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Smarter. Simpler. Better. 1
Smarter. Simpler. Better.
Niall Ferguson National Partnership Manager
Optimising processes to minimise administration
Smarter. Simpler. Better. 2
50 years experience
Award winning pension
fund
c£65bn Funds Under Management
• NOW: Pensions is a UK multi-employer trust
• First UK mastertrust to be awarded Pensions Quality Mark READY by National Association of Pension Funds
• Low cost operating model
• Subsidiary of ATP, Denmark’s leading pension provider
Who we are – heritage and backing
C151,500 employers C4.8m membersSource: ATP 2013 Annual Report
Smarter. Simpler. Better. 3
Wholly independent with a depth of experience to provide rigorous governance.
Nigel WatersonChair and formerShadow Pensions
Minister
Christopher DaykinThe Former Government
Actuary
Lord MonksMember of House of
Lords and Former General Secretary of
ETUC and TUC
Win RobbinsFormer Head of European Fixed
Income, Barclays Global Investors and Credit Suisse Asset
Management
Jocelyn BlackwellFounder of Dunnet Shaw and Raising
Standards in Pensions Administration
Trustee Board – Mastertrust governance
Smarter. Simpler. Better. 4
• Picking the right scheme for your employees is imperative
• The employee has no control in the decision making process
• They are being automatically enrolled
• You have their retirement fortunes in your hands
• It’s a big responsibility
A responsibility to your employees
Smarter. Simpler. Better. 5
• Auto enrolment is complex – you need a provider who will help to keep it as simple and hassle free as possible:
✓Handle assessment and opt-outs/opt-ins (when your payroll does not do this)
✓Handle all statutory communications as a managed process✓Interface seamlessly with payroll
• Robust proposition that won’t let you or your employees down
• Low cost to you and your employees
A responsibility to your firm
Smarter. Simpler. Better. 6
Compliance or something more?
•Basic compliance is the route currently favoured by most employers
•Give consideration to providing a package above the minimum – it may not be as costly as you think
•Well communicated benefits improve employee retention and productivity
•You can offer different provision to different employee categories
•We offer five different contribution models for greater choice and flexibility
Smarter. Simpler. Better. 7
Pension Quality Mark (PQM)
• Set up in 2009 to recognise good Defined Contribution pensions
• PQM Ltd not-for-profit and supported by The National Association of Pension Funds
• Supported by government, regulators, employer, industry & consumer groups
• 186 employers have ‘classic’ Pension Quality Mark for their scheme
PQM READY
• Set up in Feb 2013 to recognise quality Master Trusts
• NOW: Pensions was the first master trust to attain PQM READY status
• Standards on communications, governance and charges
• Six Master Trusts have gained PQM READY
Help to identify a good scheme
Smarter. Simpler. Better. 8
• Online sign up – set up a scheme within minutes, no lead time required when using standard models
• We don’t underwrite – guaranteed acceptance once application verified, no minimum member numbers or contribution levels
• Integration – we can run alongside any existing arrangements and collaborate with payroll and existing scheme providers
• Flexibility – happy to support full or partial integration of our solution
• Support – employee education toolkit and implementation support with highly experienced team
We seek to remove the
delivery burden whilst ensuring compliance and a full audit trail
What we provideEmployer and adviser control
Smarter. Simpler. Better. 9
• Simple and straightforward auto enrolment pensionNo hidden charges or fees - no hidden agendas
• Members always in control Personal member website, transfers in and out, lifestyling
• Low member charges We keep costs low to maximum savers pension pots
What we provideMember centric
Smarter. Simpler. Better. 10
What processes do you want to manage?
Smarter. Simpler. Better. 11
If only someone could help me with
all of this auto enrolment stuff…
Could we pay
someone to do it?
I don’t have time to deal with anything
else
Smarter. Simpler. Better. 12
Smarter. Simpler. Better. 13
So let’s look at the process…
Assessment Communications to workers
Opt-out/in Report generation
Support
Smarter. Simpler. Better. 14
Summary
Smarter. Simpler. Better. 15
Securing the right scheme
• 2014 is going to be busy - 30,000 companies staging over a four month period in mid-2014
• Plan ahead and don’t make any assumptions – the market is shifting - don’t assume your existing providers will be suitable or willing to accept your entire workforce
• Auto enrolment doesn’t have to be a trade off between good value for employer and good value for employees
• Keep it simple – complexity adds cost but delivers little extra value
Smarter. Simpler. Better. 16
• Pensions Minister keen to introduce “pot follows member” for auto enrolment
• The cap on workplace pension charges impacts most existing schemes
• Government may increase minimum contributions – widespread consensus that 8% contributions won’t be enough
• Certainly the provider and operational landscape won’t remain static
Don’t assume the legislation will remain static