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About NOW: Pensions

NOW: Pensions is an independent, multi-employer trust serving thousands of employers and hundreds of thousands of employees from a wide range of sectors.

A subsidiary of one of Europe’s largest pension funds, Danish pension scheme ATP, NOW: Pensions offers a simple and cost effective workplace pension solution direct to employers and via advisers and the payroll sector.

About us

Governance 4

Online sign up 6

Post sign up process 8

Model selection 9

Member costs and charges 10

Communications 11

Administration 12

Employer responsibilities 13

Values and principles 15

Contents

NOW: Pensions is an independent, multi-employer master trust. This means that it is one legal entity, with one Trustee Board overseeing the interests of multiple employers and their employees.

The master trust structure enables all, including small, employers to benefit from independent, robust, high quality governance without the costs associated with an employer establishing and running their own trust-based scheme.

NOW: Pensions prides itself on its good governance structure and has a Commercial Board concerned with the day to day running of NOW: Pensions Limited and a Trustee Board which has a statutory duty to ensure that the scheme is run in the best interests of members at all times.

The NOW: Pensions Trustee Board oversees decisions on all crucial scheme issues such as charges, investment strategy and administration. They closely monitor the performance of the management team and investment manager taking action to safeguard members’ interests when required.

The NOW: Pensions’ Trustee Board comprises a wide variety of well known industry figures with extensive expertise in their respective fields.

Governance

Nigel WatersonChair and former Shadow Pensions

Minister

Christopher Daykin The former Government

Actuary

Lord MonksMember of House

of Lords and former General Secretary of

ETUC and TUC

Win RobbinsFormer Head of EuropeanIncome, Barclays GlobalInvestors and Credit Suisse

Asset Management

Jocelyn BlackwellFounder of Dunnett Shaw

and Raising Standards in Pensions Administration


Minister


Actuary



ETUC and TUC


Asset Management




Minister


Actuary



ETUC and TUC


Asset Management




Minister


Actuary



ETUC and TUC


Asset Management



About NOW: Pensions | 4


Minister


Actuary



ETUC and TUC


Asset Management



Nigel WatersonChairman of the BoardNigel Waterson was Conservative MP for Eastbournefrom 1992 to 2010. He served as Shadow PensionsMinister for seven years. Nigel was also a long-standing Chairman of the All Party Group for Older People. He is currently a Trustee of the International Longevity Centre and is also a member of the Council of the Society of Pension Consultants.

Jocelyn BlackwellTrustee DirectorJocelyn has over 30 years’ experience in the pensions industry. In 1987 she founded Dunnett Shaw, a management consultancy that specialised in advising clients on pension administration processes, systems and outsourcing. The business merged with Higham Group in 2005 to form Higham Dunnett Shaw, which was sold to Capita in 2007.

Jocelyn was also the founder of the industry-wide body Raising Standards in Pensions Administration (now PASA) and chaired it for four years. She was the winner of the “First Woman of Finance Award” in 2005. She is currently Non-Executive Director at Inside Pensions, a specialist firm that provides independent scheme secretarial services to trustee boards.

Christopher DaykinTrustee DirectorChristopher Daykin CB, Hon DSc, MA, FIA, FSA, Hon FFA, was the Government Actuary of the UK from April 1989 to September 2007. He qualifies as a Fellow of the Institute of Actuaries in 1973. Employed at Government’s Actuary Department (GAD) from 1970 to 2007, he worked for UK and many international clients on pension fund consultancy, population projections, social security, national pension policy, pension reform, risk management and the supervision of insurance companies and pension funds.

Chris is now an independent consultant and has avariety of appointments, including Chairman of Trustees of the Arts Council Retirement Plan and member of the Prudential Assurance Company with profits committee. He was President of the Institute of Actuaries 1994-96 and Chairman of the International Forum of Actuarial Associations (the predecessor of the International Actuarial Association) 1996-97. He is currently Chairman

of the European Actuarial Consultative Group, the umbrella organisation for all the actuarial associations in Europe, and Chairman of the Pensions, Benefits and Social Security Section of the International Actuarial Association.

Lord MonksTrustee DirectorJohn Monks (Baron Monks) is a member of the House of Lords and was the General Secretary of the Trades Union Congress (TUC) in the UK from 1993 until 2003, when he became the General Secretary of the European Trade Union Confederation (ETUC).

Win RobbinsTrustee DirectorWin has over 30 years’ experience in the Financial Services industry and holds a number of appointments. She is Non-Executive Director of City Merchants High Yield Trust and a Non-Executive member of the St James’ Place Partnership Investment Committee. She is also a trustee of the Institute of Cancer Research Pension Fund. Prior to this Win held a number of senior roles in the Asset Management sector, she was Managing Director and Head of Pan-European Fixed Income at Credit Suisse Asset Management, Managing Director and Head of non-US Fixed Income at Citigroup Asset Management, Managing Director and Head of European Fixed Income at Barclays Global Investors, from which appointment she retired in 2008.

All Trustees undertake regular training to ensure that they demonstrate the knowledge and skills identified by The Pensions Regulator.

In April 2013, NOW: Pensions became the first master trust to attain the National Association of Pension Funds’s (NAPF) new Pension Quality Mark Ready (PQM) Standard. The benchmark shows employers that NOW: Pensions is a well governed pension scheme with low charges and good member communications.

In January 2015, NOW: Pensions achieved independent assurance of scheme quality in accordance with the new master trust assurance framework AAF02/07 introduced by The Pensions Regulator (TPR) in conjunction with the Institute of Chartered Accountants in England and Wales (ICAEW).


Online sign up

NOW: Pensions has developed a simple solution to supportemployers as they auto enrol their employees into a pension scheme. Our intuitive tool saves time, provides compliance and gives the user a hassle free experience.

The systemOur online tool is designed to give employers complete control of the auto enrolment process, from fact finding to application. Our system mitigates the need for extensive form filling, phone calls and emails.

You can log in directly from our website and fill out the application form that covers all the information needed to set up a scheme and it takes only minutes to complete. When completed, a participation agreement is produced which can be approved online without the need for a wet signature. Once the application is received, NOW: Pensions will provide implementation details within as little as two working days.

The process of enrolling online follows these five simple steps:

Firstly, log in to the system by visiting: www.nowpensions.com

1. Choose model design (select from our five standard models)

2. Fill out details

3. Legal signatory reviews and approves application

4. Signatory reviews and submits application

5. NOW: Pensions reviews the application and provides implementation details


Online sign up checklist

When completing the application, users will be prompted for the information below. Having this available will enable them to successfully complete the application within minutes.

Scheme selection

Employer name (legal and known as)

Legal and organisational set-up (i.e. holding or subsidiaries)

Auto enrolment staging date

Does the employer want to start ahead of the staging? If so, on what basis (i.e. voluntary)

Company/charity registration and address

Estimation on the number of employees to be included in the NOW: Pensions scheme

Details for primary contact

PAYE number

Payroll provider or bureau and their contact details1

Confirmation of who will be handling the assessment (i.e. payroll)2

Confirmation of who will be handling the communications (i.e. NOW: Pensions/payroll

Payroll details (name and frequency) and bank details for collecting contributions

1 The payroll provider or bureau will be sent relevant correspondence from NOW: Pensions.2 It is recommended that assessment is managed by the payroll provider.



UP TO TWO DAY TURNAROUND

Email containing employer portal link, confirming the site is up and running and how to log on

Email with Participation Agreement

attached, welcoming applicant to

NOW: Pensions

Email informing applicant of next steps.

Email contains: 1. Generic input/output files

2. Log on ID/password3. User guide

START Application

receivedonline

Email confirming receipt of

application and scheme reference

number

FINISH Employer

support available if required

Participation Agreement approved

Post sign up process

This flowchart shows the journey from completing an application through to implementation of a new scheme, enabling employers to meet all the necessary legislative and time specific auto enrolment requirements along the way.

Applicant logs onto their portal, changes password

and uploads information


Plan 101: Auto enrolment standard

The minimum based on legislative total contribution requirements on banded earnings1.

Employer contribution Employee contributionUntil October 2017 1% 1%

October 2017 – September 2018 2% 3%

October 2018 onwards 3% 5%

Plan 102: Auto enrolment plusThe minimum based on legislative total contribution requirements but based on basic salary2.



October 2018 onwards 4% 5% Plan 103: Stepped savingAn employer driven package which builds up to 9% of total basic pay by 2018. This structure is designed for employers that want to offer an enhanced package but want to phase in their contributions.



October 2018 onwards 6% 3%

Plan 104: Saving plusA flexible offering for employers that want to contribute more than the minimum. Any contribution structure is accepted which has a total contribution of 10% or more on basic pay. The employer has to contribute at least 5%.

Plan 105: Matched savingA flexible 1:1 matching scheme based on basic pay. Employers can provide a range of allowable contribution levels for the employees to choose, the employer will then match the contribution rate chosen by the employee.

1 Banded earnings are between the statutory minimum of £5,824 and maximum limits of £42,385 for the 2015/16 tax year as set out by the auto enrolment legislation. 2 Basic pay is the basic earnings of the employee, excluding any fluctuating income, e.g. bonuses, commission, overtime, etc.

Model selection

We have devised five standard contribution models that allow enough flexibility to cater for every type of business.


Member costs and charges

We believe that our solution should benefit both employers and employees. Our transparent and cost effective charging structure offers a competitive advantage for our clients who can offer their entire workforce a low cost, high quality pension.

Employees are becoming more engaged with their retirement provision given the automated nature of auto enrolment. Therefore, any charges attributed to saving into a pension may be subject to more attention than before.

Our approach to charges is to be absolutely clear. With NOW: Pensions there are no hidden financial complexities and no room for ambiguity. We charge one annual Management Charge (AMC) and a single monthly administration charge.

Up to 30 Sept 2017

1 Oct 2017– 30 Sept 2018

From 1 Oct 2018

Monthly administration fee Investment Annual Management Charge

Earning £18,000 or less £0.30 £1.00 £1.50 0.3% of fund

Earning more than £18,000 £1.50 £1.50 £1.50 0.3% of fund

If you leave the scheme Lower of 0.5% p.a. or (£1.50 p.m. + 0.3% p.a.)

++


Communications

NOW: Pensions provides bespoke communications to ensure a smooth transition into auto enrolment, maintaining compliance now and in the future.

Statutory communicationsEmployers are required to inform employees about auto enrolment, detailing how they are affected by the new legislation. This communication must be provided in writing (preferably email) and must be specific to the individual (eligible jobholders, entitled workers and non-eligible jobholders). The duty is on the employer to provide the right information to the right individual, at the right time – we can assist you with this.

NOW: Pensions can handle all statutory communications relating to auto enrolment for all employees – not just eligible jobholders, but also entitled workers and non-eligible jobholders. We can send out letters, emails and other member information directly to employees. If we have not been provided with an email address the employer can select to have communications for these employees delivered to the employer as PDFs, to a centrally managed company e-mail address, for you to print and deliver to the employee within the statutory timescales (six weeks). Alternatively, we will print and send hard copy letters ourselves, charging you the employer for printing and postage.

Whilst the ultimate responsibility of record keeping lies with the employer, we hold compliance records and keep them safe for as long as we are required to do so. Additionally we manage opt in/outs, ongoing employer compliance reporting and statutory postponement notices.

Pre-staging communications and employee educationQuestions from employees about auto enrolment – even at a very basic level – are inevitable, leaving employers exposed to providing answers to any number of queries and concerns. This makes employee education extremely important. To support employers through this new legislation we have built an online toolkit. This contains all the materials needed to inform and support employees about auto enrolment. Employers are granted access to their own employer portal and once inside they will be able to view and download a multitude of communications ranging from support literature to employee education materials.


Administration

Our administration platform has been streamlined to give members and employers value for money whilst still providing a market leading pension proposition which includes:

• Simple employer portal and easy to read reports

• Full auto enrolment reporting to The Pensions Regulator

• Simple cash management through direct debits with no monies taken until the end of the opt out period

• Interaction with payroll – employee communications and assessment

• Fully serviced opt in and opt out for all employees

• Full data protection and compliance

Customer service centre NOW: Pensions’ customer service centre provides our clients with the peace of mind that employer,

implementation or member enquiries are being answered promptly and professionally.

Ongoing support Our employer service is provided through online and phone support. We employ technical pensions

professionals who can answer questions ranging from facilitating technical improvements, resolve existing issues or general auto enrolment/pension queries. In addition to direct support, we provide a large volume of educational literature, tutorials and FAQs in the online help centre.

Management information reports NOW: Pensions can produce management information reports to provide employers with the certainty

and clarity that their employees are being served in the best possible way. Management information reports are available for download to the employer via their employer portal.


Employer responsibilities

When an employer signs up with NOW: Pensions they will have a mixture of some initial and ongoing responsibilities they must adhere to in order to comply with legislation. Upon reaching their staging date employers must ensure that:

• Payroll files are uploaded to NOW: Pensions following the first and every pay period thereafter

• Communications are sent to employees within six weeks of the staging date1

• Contributions are paid by the 22nd of the following month in which they are taken2

• The scheme is registered with The Pensions Regulator (declaration of compliance)

Using postponementEmployers have the choice to postpone their scheme start date by up to three months, but they will still have to issue postponement notices to their employees within six weeks of their staging date. If NOW: Pensions has been asked to issue communications on their behalf, we will do so once the first payroll file has been uploaded via their employer portal1. Employers who do not meet this requirement will not be entitled to use postponement and could be in breach of the Deed of Participation. They will also be expected to send pension contributions by the 22nd of the following month.

Auto enrollingThe first payroll file submission should include the pension contribution amounts, for which the sum will be expected to be paid by the 22nd of the following month2. NOW: Pensions will send the required communications following receipt of this file. Going forward, payroll files will need to be uploaded after each pay period.

Declaration of compliance (i.e. register) with The Pensions RegulatorEmployers need to register their scheme with The Pensions Regulator no later than five months after their staging date. They will require the following information in order to fulfil the registration process:

The Employer Pension Scheme Registry ‘EPSR’ number: Final 4 digits of their employer portal name The Pension Scheme Registry ‘PSR’ number (for NOW: Pensions Trust): 12005124 NOW: Pensions’ address: NOW: Pensions Trustee Ltd, 164 Bishopsgate, London, United Kingdom, EC2M 4LX

1 Please note, postponement notices cannot be sent by NOW: Pensions without receipt of this first payroll file which must show the assessment category.

2 For the first auto enrolment contributions the amounts are not paid to NOW: Pensions until after the expiration of any opt out period.

My duties1.2.3.

Initial and ongoing employer duties

Upload payroll file to their employer portal for every payroll cycle following their staging date. This will trigger tailored postponement notices or auto enrolment communications for each employee included in the payroll file upload.

Download payroll file, prior to each subsequent file upload, in order to update their payroll information with opt outs and opt ins.

Upload payroll file to their employer portal after payroll period following auto enrolment.

Reconcile errors and re-upload where necessary.

Relevant mandatory communications, categorised into eligible, non-eligible and entitled, issued by NOW: Pensions if selected to do so.

These communications will be issued within the mandatory six week period.

Employees who are automatically enrolled have 30 days from the date of the communications to opt out. This can be done online via their member account or by requesting a form via 0 3301 003 334.

Staging date(Option to postpone by up to three months)

Employer duties Provider duties

Deferred auto enrolment date

Next pay periods(Contributions to be collected by 22nd the following month)

1

2

3

4

5

6



Our values and principles

At NOW: Pensions it’s our vision to build the leading pensions business in the UK, based on a modern approach to pension provision, where transparency, low costs and high quality are cornerstones in building a successful business.

It’s our mission to give everyone in the UK the possibility of a better retirement by becoming the leading pension provider in the UK.

Stay simple. Pensions needn’t be complicated. Our customers should be able to focus on their business and our members shouldn’t be burdened with complicated investment choices, but feel safe that their retirement savings will be there when they need them.

Stay honest. Our customers and members should be able to see exactly what we are doing. We have no hidden fees or charges. Trust is everything. And our members need to know exactly what to expect from us, their pension provider.

Stay responsible. We work for our customers and members. Our governance processes are designed to ensure that our members’ money is invested responsibly and that we stay on top of our game. We aim to manage risks to provide our members with stable long-term returns instead of chasing short-term gains.

Stay Committed. To provide our customers and members with the best possible pension provision, we never stop challenging the status quo. We know we always have to develop and do things better, to provide our customers and members with the best possible pension provision.

We live and work by our founding principles. Across every department, these values affect everything we say and do. We never stop challenging the status quo and we know we always have to develop and do things better, to provide our customers and members with the best possible pension provision.

RETIREMENT

Information correct as at August 2015 NOW: Pensions is a UK occupational pension plan. Membership is only available through an employer, following satisfactory checks on the employer. This is written as a general guide only. It should not be relied upon as a substitute for specific professional advice. Please note, past performance is not a guarantee of future returns.

NOW: Pensions3rd Floor164 BishopsgateLondon EC2M 4LX

Tel: +44 (0) 333 33 22 222nowpensions.com

Smarter. Simpler. Better.

EM00027.0815/8

about now: pensions · about now: pensions | 8 up to two day approved turnaround email containing...

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