Have you factored in Pension Charges to your auto enrolment setup costs?
The People's Pension have recently announced that from 23rd November, businesses staging from 1st January onwards will have to pay £500 up front for a pension scheme.
This comes at a discounted price of £300 if the business is signing up through an intermediary.
The introduction of the charges comes in with their new enhanced service and support package offered to employers setting up a pension scheme for auto enrolment.
Patrick Heath-Lay, CEO of BC&E - provider of The People's Pension said:
“Workplace pensions can be alien to people outside the pensions industry. Our research and 30 years of experience working with small employers tells us that they want simple solutions and a great deal of support in meeting their auto-enrolment duties. Our doors will remain open to everyone who wants to come to us, regardless of their size and their sector.
“That’s why we’ve developed a simple, hassle free and high support solution for busy people who just want to run their business, not get bogged down in pensions. Simplicity is the key. We’re here to help small employers navigate the auto-enrolment galaxy.”
The move to charge employers comes after NOW:Pensions also announced the planned introduction of a charge back in September for up to £40 per month. This now leaves NEST as the only of the "big three" for auto enrolment that doesn't charge an employer charge.
With auto enrolment set to affect around 1.8 million businesses between now and 2018; there are many businesses that will be setting up their pension schemes that will have to be paying these charges.
- Do you think that an employer charge will encourage more businesses to set up with NEST or other pension providers?
- Do you think that it is now a matter of time before NEST follow suit and introduce an employer charge?
- How will this affect the capacity crunch? Will it even out the amount of businesses going for different pension providers or ultimately push more pension providers to introduce a cost?
The best place to run your auto enrolment solution is within your payroll. After setting up a pension scheme, all of the information you need is already existing within your payroll software.
You can see a free online webinar that shows you "10 Reasons to choose payroll for auto enrolment (over third party systems)" if you are a business.
If you are an accountant, you can alternatively see "Find out how accountants can simplify the staging process"