The Complete Pensions Trust
Government's latest initiative to auto enrol all staff into pension schemes requires firms to act. The ACE's new scheme can help, says Jeannie Edwards.
The government has taken the initiative to auto enrol employees into a pension scheme with their employer and from past experience I would say that this is a very sound move.
Many people don't enrol in a pension through either lethargy, ignorance or misinformation.
The government has built a structure around this auto enrolment to give flexibility to companies with regard to their start date (staging date) and then postponement dates to allow those companies with several small pensions to bring them together in one date.
"The unintended consequence of a pension structure with so many elements to accommodate such flexibility is that the application and administration of auto enrolment is complex and very time consuming."
The Government has also allowed for people to consciously opt out of the pension scheme initiative, but has wisely made it an opt out mechanism that ensures that someone really means to opt out and isn't opting out through carelessness or Lack of information.
The unintended consequence of a pension structure with so many elements to accommodate such flexibility is that the application and administration of auto enrolment is complex and very time consuming.
For large companies with in house pensions managers and structured administration the added activities of auto enrolment can be absorbed.
However for smaller companies ( of which our workforce makes up the majority) this administration and legislation is a burden.
For this reason, the ACE and Charles Stanley Financial Services have collaborated to bring a very cost effective solution for SMEs. For a comparatively very small fee companies can utilise the Pension solution and leave the burden of the legislation, administration and communication to the Pension solution provider.
The government's initiative is excellent, and this solution provided by the ACE for not only its own members but for any interested company is as much of a problem solver as it is a support to the Government's initiative.
The Pension solution can be found here.