Providers not open for SME auto-enrolment business
Most advisers – 77% – predict that growing numbers of pension providers will not offer auto-enrolment schemes to businesses with fewer than 30 employees, according to research conducted by Defaqto on behalf of Now: Pensions.
A third of the 248 advisers surveyed already believe there is not enough choice for employers nearing their staging dates, with 82% claiming providers have been cherry picking auto-enrolment business.
Guaranteed acceptance was the most important factor given by nearly a third of the auto-enrolment schemes that advisers have written so far, closely followed by the level of charges cited by 29%.
Alongside this, two thirds of the advisers surveyed expected to see a growing number of pension providers introducing an employer charge for auto-enrolment, with 69% claiming that a charge would not necessarily deter them from recommending a scheme.
Morten Nilsson, chief executive officer at Now: Pensions, pointed out that owners of small firms may have little or no experience of pensions and will be fitting auto enrolment in around their other day to day responsibilities.
For many providers, the effort involved with administering these schemes won’t be worth it. Widespread cherry picking is already occurring but as smaller firms reach their staging dates, it’s like that growing number of providers will close their doors altogether.
Petaurum Solutions’ Comment
Our Micro Enrolment Plan provides access to the Petaurum Solutions’ collective Auto Enrolment Scheme for those employers with 10 staff or less. This collective scheme has the following features that will ensure you remain compliant with Auto Enrolment legislation:
- Automatic access to the scheme’s Defaqto 5* rated Mastertrust Pension Scheme, giving both employee and employer investment choice
- Employee assessments undertaken on your behalf each pay period, to determine if they meet the Auto Enrolment entry criteria; simply provide us with an employee list and we will provide you with your assessment information
- No more worrying about the formal communications required, our portal will handle this for you
- Three years’ support after your auto enrolment staging date, so as and when things change we will make sure you are always up-to-date and more important, compliant with legislation
- Free access to the Petaurum Solutions’ Employee Benefits Scheme so your employees can enjoy retail savings on a wide range of goods, from groceries to holidays
With our standard Enrolment Plan being open to employers of any size, we can secure your PAE future, leaving you free to do what you do best – manage your business. Want to know more? Then feel free to contact us ….
This information is intended as a general overview and discussion of the subjects dealt with. The information provided here was accurate as of the day it was posted; however, the law may have changed since that date. This information is not intended to be, and should not be used as, a substitute for taking legal, HR or benefits advice in any specific situation. Petaurum Solutions is not responsible for any actions taken or not taken on the basis of this information. Please refer to the full terms and conditions on our website.