We have recently met with the National Employment Savings Trust (NEST) who are a new pension provider offering a simple and low-cost pension scheme for employers of any size.
NEST has been established to help employers meet the new workplace pension responsibilities which begin to come in to force for the largest employers in October 2012.
We have assessed NEST’s ability to deliver a ‘no frills’ corporate pension solution for employers and are able to confirm they have been added to our panel of providers who will be considered for current and prospective corporate clients.
Are Payroll and HR Providers Prepared?
Although most employers are now getting to grips with what their duties will be in light of the upcoming Workplace Pension Reforms, one thing that is not so clear is how payroll and HR providers are amending their systems to cope with the revised legislation.
Many businesses who rely on payroll and HR providers will understandably assume their existing provider will have the required systems in place to cope with things such as earnings triggers and eligibility criteria.
The Pensions Regulator (TPR) has recently dismissed claims that payroll providers are dragging their feet in the development of suitable systems to cope with auto-enrolment and are confident that providers are moving ahead with their products. TPR has written to all payroll providers encouraging them to communicate with their employers as to where they are with regards to their offerings. They are hoping that when the final regulations are in place the providers will then be certain about what they need to do.
What are our experiences?
We have recently spoken with NorthgateArinso who are the UK’s leading HR, Payroll and Reward Solutions provider. They have confirmed they have already built an ‘auto enrolment service’ for their larger clients and that they are committed to delivering a similar service to their SME clients. Encouragingly, they do not envisage that an additional cost will be levied to their clients for this updated service due to the fact that the enforced changes to their software are legislative. SAGE have also confirmed to us that their auto enrolment software has just been signed off and they intend rolling this out as a free update. It will be interesting to understand the intentions of HR and Payroll providers……..
Wingate Benefits Solutions are here to assist you in planning for the new reforms. Should you wish to discuss the above in more detail or any other aspect of your pension scheme please do not hesitate to contact your usual Wingate Benefit Solutions adviser or call us on 0844 406 0027.
Tax and legislation are liable to change. This information is based on WBS’s current understanding of UK law and HM Revenue & Customs practice and legislation we believe may apply in the future. No guarantees are given regarding the effectiveness of any arrangements entered into on the basis of the information contained herewith. It is recommended that professional advice is sought prior to entering into any financial arrangement.