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Auto Enrolment - Peoples Pension Announce Setup Fees

Auto Enrolment - Peoples Pension Announce Setup...

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So we have Now:Pensions with up to £480.00 per annum charges and now The Peoples Pension announcing a one off £500.00 setup fee......

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By SteveHa
05th Nov 2015 14:31

Small man suffers

OK, so since all the larger employers are already passed their staging dates, and the only ones left are small and micro entities, their only option if they don't want to get stung for paying for everyone else's AE setup fees retrospectively is NEST.

Isn't it just typical of the UK economy. Let the fat cats in free, and make the little guy pay later.

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By Henry Tapper
06th Nov 2015 07:27

The small man is not suffering!

There are a number of reputable pension providers with whom your clients can still contract with without paying an upfront or regular fee

They include NEST, Legal & General, BlueSky Pensions, Royal London, Salvus, Supertrust , Smart Pension and Smarter Pensions. Not all these providers will take every employer but there is a cheap and simple way to find out which will take your employer and that's to use a search facility like Pension PlayPen or Financial Sat Nav's Husky service.

The cost to the Fat Cats of setting up auto-enrolment often ran to more than £1m (ask Lloyds Banking Group who have stated their implementation costs as being north of that). They have paid a high price to be compliant and smaller companies are getting the benefit.

 

The basic laws of economics demand these costs, NEST needs to follow suit if it isn't to exceed the £600m loan it has from the DWP.

The small man is going to get a great deal out of auto-enrolment and if you can be smart and use a provider who is right for your client (and not just cheap) then you are really helpful.

If you want to better understand how to choose a pension, please get in touch at [email protected]

 

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RLI
By lionofludesch
06th Nov 2015 08:24

How ?

henrytapper wrote:

The small man is going to get a great deal out of auto-enrolment .....

In what way ?

He gets extra costs and now he has to pay a fee to start a scheme.

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By MissAccounting
06th Nov 2015 12:37

Value?

henrytapper wrote:

There are a number of reputable pension providers with whom your clients can still contract with without paying an upfront or regular fee

They include NEST, Legal & General, BlueSky Pensions, Royal London, Salvus, Supertrust , Smart Pension and Smarter Pensions. Not all these providers will take every employer but there is a cheap and simple way to find out which will take your employer and that's to use a search facility like Pension PlayPen or Financial Sat Nav's Husky service.

The cost to the Fat Cats of setting up auto-enrolment often ran to more than £1m (ask Lloyds Banking Group who have stated their implementation costs as being north of that). They have paid a high price to be compliant and smaller companies are getting the benefit.

 

The basic laws of economics demand these costs, NEST needs to follow suit if it isn't to exceed the £600m loan it has from the DWP.

The small man is going to get a great deal out of auto-enrolment and if you can be smart and use a provider who is right for your client (and not just cheap) then you are really helpful.

If you want to better understand how to choose a pension, please get in touch at [email protected]

 

 

What a complete load of tosh.  Its only the people who are trying to make a cheap buck out of it that thinks there is any value in it!

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RLI
By lionofludesch
24th Nov 2015 13:21

As Henry Tapper said .....

henrytapper wrote:

The small man is going to get a great deal out of auto-enrolment .......

Of course he is.

I'll give it two years.

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By jon_griffey
05th Nov 2015 16:34

Creative Benefits

We have started using Creative Benefits.  Its early days but they seem to have an almost hassle free solution.  Charges are taken from the contributions so no ongoing cost for the employer.

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By leicsred
05th Nov 2015 19:51

Nest
So now when we give people the options stating the costs charged its going to be hard to predict which scheme the employers will select.....

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By Mick Milne
05th Nov 2015 21:27

crooked industry - jumping on the bandwagon

I've been using Peoples Pension for a lot of mine, but having just read this, I'll have a look at Nest now.

What do you think - are they likely to follow suit, or will they remain free on the face of it, as the main Government backed scheme?

 

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By ireallyshouldknowthisbut
06th Nov 2015 09:35

.

LLyods banking group has 88,000 staff.  Thats about £11 each.

To put in context a really basic £1,000 all in set up for a one employee business would be like Llyods coming up with £88 million.

The little guy gets nothing but hassle and cost. From the regulator, staff and having to cough up to run the thing.   All for the sake of what is quite frankly trivial sums of money for the majority of staff.

O- and he has to pay the pension too, ie further hidden taxes on employment.

I am sure if you are advising on it, its lovely to collect all those fees. But for everyone else.... 

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By leicsred
06th Nov 2015 10:17

Politically dificult

I would think that it would be politically difficult for the Government to allow there to be no free (to employers) mainstream provider of AE for small companies. If NEST looked at charging I think there may be pressure for the Government to issue more funding to keep it free.

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By smartpensioncouk
06th Nov 2015 13:02

Free alternative

As Henry says, there are still free options with no set up or ongoing fee for companies.

We at Smart Pension rank among them - www.AutoEnrolment.co.uk - and unlike some of the other options, we're not only good value for the employer (free) but also for the employee...we haven't got 100s of millions of government loan to pay back and we don't have hidden "transaction fees" that bump up the costs to employees in year one from £1.61 (our average year one employee fee) to the high teens (Now - £18.64) or beyond (Creative - £24.86!).

I work at Smart Pension so I would say that but of the remaining options, we are definitely worth a look. 

 

Feel free to email us [email protected] if you have any questions.

Mark

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By Lesley A Parker
10th Nov 2015 13:15

The Peoples Pension

Is there a charge to use the People's Pension, as the pension provider for auto enrolment?

 

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By zebaa
10th Nov 2015 15:30

@Lesley

Yes. My understanding is £500 + vat upfront & 0.5% PA on funds. For construction industry firms & perhaps others I understand there may be a discount on the upfront fee.

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By Lesley A Parker
10th Nov 2015 15:52

The People's Pension!

Thanks very much!!

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By alan.falcondale
19th Nov 2015 12:19

NOW Pensions

My employer has not been sending my (and I assume many other paye contractors) contributions to NOW since approximately November 2014 - yes, 12 months. Just prior to the big NOW switch off for data transfer

NOW have so far not sent any communication whatsoever regarding this to any of the members.

NOW have refused/unable to send any indication as to fund value and so far have not sent any statement of contributions. In fact, I don't believe I have ever had any statement of contributions as originally promised when the scheme was started - 2013.

The only statement I had was in about June when I repeatedly and doggedly asked for a statement...and event then it was completely devoid of any explanation about missing contributions or fund value.

Three words come to mind whenever I see NOW Pensions: Avoid, Avoid, Avoid

 

the irony of the workplace pensions advert just rubs salt in the wound for me.

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By Kazmc
20th Nov 2015 06:57

Not The First......

alan.falcondale wrote:

My employer has not been sending my (and I assume many other paye contractors) contributions to NOW since approximately November 2014 - yes, 12 months. Just prior to the big NOW switch off for data transfer

NOW have so far not sent any communication whatsoever regarding this to any of the members.

NOW have refused/unable to send any indication as to fund value and so far have not sent any statement of contributions. In fact, I don't believe I have ever had any statement of contributions as originally promised when the scheme was started - 2013.

The only statement I had was in about June when I repeatedly and doggedly asked for a statement...and event then it was completely devoid of any explanation about missing contributions or fund value.

Three words come to mind whenever I see NOW Pensions: Avoid, Avoid, Avoid

 

the irony of the workplace pensions advert just rubs salt in the wound for me.

This is not the first time I have heard of this happening, apparently it happened a lot when Now:Pensions moved systems so they are well aware of the problems. I would contact The Pension Regulator as that helped one of my clients.

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By zebaa
19th Nov 2015 16:23

@alan

If deductions have been made from your pay but not paid over you will be entitled to the value of the pensions contributions & compensation. Your first port of call is your employer. If you are not satisfied with the answers then you must take it further.

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RLI
By lionofludesch
20th Nov 2015 13:46

Shambles

Anyone with any knowledge of small businesses could have predicted that it would end in a shambles.

I take no great pleasure in saying, "I told you so".

Small businessmen aren't up to the task and have no incentive to make it work.  What's in it for them ? The satisfaction of seeing ex-employees well provided for in retirement ?  Provided they haven't pre-deceased them, obviously.

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By accountin
24th Nov 2015 13:05

NOW Pensions get lost

just had an email from NOW Pensions . From 1 Jan 2016 NOW want £432+avt/yr employer charge, or £240+vat/yr via bureau, in addition to £15/yr+vat per employee apparently for an enhanced service, yet it is the ONLY service on offer. I feel such a fool because  I had recommended NOW to many of my clients. Asked why they had done this, they say they have had to employee 250 people in a call centre in Nottingham. Had they no idea that micro start-ups would place a short-term demand on their services? Answer - yes, they only realised in September that 0.5m small employers would be staging from 2016. Filled with no confidence in their ability to run a business and even less to run an investment portfolio. I predict this is going to be the biggest miss-selling scandal in history and the government are the scammers. Charges for running millions of tiny commercially administered schemes are going to be many more times that of increasing NI or a ring-fenced state pension scheme.

 

Note comment from smartpensions - but what guarantee is they wont hike their charges when shock horror they are surprised by the demand for their services.

Looks like most employees are just going to be stuffed by NEST's percentage skimming instead.

 

 

 

 

 

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By GENESIS
03rd Dec 2015 12:24

NEST

Just wondering if anyone has an opinion on NEST?

 

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