Only 3% of small business owners consider auto enrolment as their biggest concern this year
Workplace pensions provider, NOW: Pensions, is urging small firms to plan ahead when it comes to selecting an auto enrolment provider.
Research conducted by NOW: Pensions reveals only 3% of small business owners consider auto enrolment as their biggest concern this year. This comes despite a growing proportion missing their staging deadline.
Morten Nilsson, CEO of NOW: Pensions said:“Over 300,000 firms still have to comply with auto enrolment this year. Leaving the decision on your provider to the last minute is unwise many cherry pick employers and aren’t open to all. To avoid unnecessary stress secure your provider early and do your homework.”
The top 5 questions you should be asking your would-be workplace pensions provider
Will you accept my business?
The first thing you need to check is whether or not your pension provider wants your business. It sounds strange but some providers will only be willing to serve larger employers or employees with higher incomes. It’s worth checking this early on in the conversation – you don’t want to waste your time.
What’s your governance structure?
There are two types of pension scheme, trust based schemes and contract based schemes. In trust based schemes, there is a trustee board tasked with ensuring that the scheme is being run in the best interests of members at all times. Contract based schemes do not have a trustee board look at members on an individual basis.
Do you have any independent scheme assessments?
It’s sensible to choose a scheme that has been independently reviewed such as those baring the Pension Quality Mark and, in the trust-based world, the Master Trust Assurance Framework so you know the provider is meeting good standards of governance and administration.
What are the charges?
It’s important to analyse how much your employees will pay for their pension as this can have a big impact on their savings over the long term. Compare and contrast providers’ investment and administration charges to make sure they are offering good value. Also be sure to check what’s charged when members stop contributing. Also check about any charges for transferring funds.
Do you handle communications?
Some providers will handle all the communications with your staff while others will provide templates for you to send yourself. Think about what works best for you and how much administration you want to take on yourself. Also check that the communications are clear and easy to understand.