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Pensions and auto enrolment

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Hi,

 

I am a bookkeeper in the Building Merchants/retail industry. We have 20 employees and two branches. 

I am looking for a pension provider who will help me with the auto - enrolement procedure and who will actually keep an eye on our account, as I am alien to the pension rules and to be honest, like all of us, I have enough tasks to complete on a daily basis!

I do not mind if it is a private pension provider, but of course the cheaper the better, as long as the service is adequate. I have had a meeting with Amicus Global Consultancy, who seem to be what we as a company need, but I just wanted to look at other providers also.

I have used Nest, for our smaller construction company, but that was only an opt in opt out process. Where our larger company does have a larger turnover of employees. I have been informed that the Nest pension pot is frozen, if you leave a company, which for my own personal reasons is not ideal. I would like and would like to offer our employees a pension that can move around with them.

Any help or suggestions would be very much appreciated.

 

Thank you.

 

Maria

Replies (9)

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By Kevin Kavanagh
12th May 2017 10:28

So, just to be clear, you're asking someone on here, who may or may not be regulated for Investment advice, to tell you which pension provider your company should appoint?

You don't say whether you are a director of the company as well as their bookkeeper, but it is the directors' responsibility, and given the number of employees they would be well advised to get proper professional advice well before their staging date.

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By Euan MacLennan
12th May 2017 11:10

Do you use an external payroll bureau? If not, now might be the time to consider it. Most payroll bureaux will be able to deal with the mechanics of auto-enrolment for you.

But Yes - an individual's NEST pension pot cannot be transferred to another pension provider. Most other pension providers allow transfers out and in.

Here is a comparison of different providers. NEST is free to set up, but the annual charges against the employees' pension pots are high. The People's Pension charges £300 (if you do it via a TPP registered agent, such as a payroll bureau, who gets a £200 discount) to set up a scheme with them, but has the lowest annual charges.

Incidentally, do not be misled by Kevkava - you only have to be regulated to give investment advice if you are advising individuals about their (pension) investments; advising the company on the pension scheme to set up for their workers is not regulated.

Oh! And it's enrolment, not enrolement.

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Replying to Euan MacLennan:
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By Kevin Kavanagh
12th May 2017 12:56

Apologies, I didn't intend to mislead anyone. I was reacting to the implications in the closing remarks which seemed to suggest that the OP's personal preferences were the main concern here.

Euan's comparison chart is clearly very useful, but I still feel the directors would be best served by relying more on direct professional advice

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Replying to Kevkava:
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By Euan MacLennan
12th May 2017 14:05

Fair enough. I am rather surprised that a company with 20 employees has not yet staged.

The choice of pension scheme depends on what the directors want to achieve. If it is simply to comply with the law at the least possible cost to the company, choose NEST and pay the minimum contributions. If they want to do better by their employees, they could choose The People's Pension or one of the other master trusts which has a good investment performance. With or without direct professional advice, the directors will end up choosing one of the standard schemes because pension companies are unlikely to set up a tailor-made scheme for just 20 members.

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Replying to Euan MacLennan:
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By Maria baker
12th May 2017 13:52

Hi Euan,

This is very helpful. Thank you.

I will take a look at the different providers.

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By jjswjjsw
12th May 2017 14:08

According to NEST's website they started allowing transfers out to another pension scheme on 1 April 2017.

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Replying to jjswjjsw:
By Democratus
12th May 2017 14:19

Yes

"you’ll be able to transfer the whole value of your retirement pot to another registered pension scheme or a qualifying recognised overseas pension scheme. You’ll need to have stopped making contributions into your NEST retirement pot before you can transfer your pot to other pension schemes.Transferring your retirement pot means that your account with NEST will no longer be active."

I not a fan of NEST but it does exactly what it says on the tin, and possibly less hassle free to set up now than i encountered 2 years ago.

Main bug-bear now is that they have no idea how a DD works!

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By Henry Tapper
12th May 2017 17:59

www.pensionplaypen.com provides a due diligence service for employers who want to choose the right pension for their circumstances. It takes payroll data, analyses it and spits out a recommendation , a due diligence report and a certificate signed by an actuary with a big PI policy. It costs £199 per client and their are volume discounts if you are introducing multiple clients.

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