nmba best practice meetings 2013
DESCRIPTION
Martin Olive, National Partnership Manager at NOW: Pensions presents at the NMBA Best Practice meetings across the country. Topics include; The SME and micro employer Tsunami, The Employer Responsibilities, Advice and Charging Models and routes to the market.TRANSCRIPT
Smarter. Simpler. Better. @nowpensions
Smarter. Simpler. Better.
NMBA Best PracticeMartin Olive | National Partnership Manager
November & December 2013
Smarter. Simpler. Better. @nowpensions
Agenda• Who is NOW: Pensions?• The Market• The SME and micro employer Tsunami • Your current approach• Pension Providers – “are they bothered?”• Routes to market
• The Employer Responsibilities• Advice and Charging Models• Getting to the SME Market with NOW: Pensions
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• NOW: Pensions is a UK multi-employer Trust
• Supported by ATP, Denmark’s leading pension provider
• Low cost operating model
• ATP investment team
• Equiniti Paymaster administrator to 2.9m UK workers
45 years
+7.95% p.a. (average) for the last 5 years*
c£74bn FUM
* Back tested data for the UK based on ATP’s investment strategy and NOW: Pensions’ implementation strategy to 30 Sept 2012
Our achievements
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4.7m members
C160,000 employers
Membership statistics
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• EmployeesStaging Date
120,000 October 2012
2,000 August 2013
800 October 2013
350 January 2014
90 May 2014
30 October 2015
Staging dates can come forward too!Staging dates can come forward too!
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The SME tsunami!From 1 April 2014…
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Smarter. Simpler. Better. @nowpensions
Oct
-12
Nov
-12
Dec-
12
Jan-
13
Feb-
13
Mar
-13
Apr-1
3
May
-13
Jun-
13
Jul-1
3
Aug-
13
Sep-
13
Oct
-13
Nov
-13
Dec-
13
0
500
1000
1500
2000
2500
October 2012 – December 2013
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Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14Jul-1
4
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14Jan
-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15Jul-1
5
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
0
2000
4000
6000
8000
10000
12000
14000
16000
January 2014 – December 2015
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Jan-
16
Feb-
16
Mar
-16
Apr-
16
May
-16
Jun-
16
Jul-1
6
Aug-
16
Sep-
16
Oct
-16
Nov
-16
Dec-
16
Jan-
17
Feb-
17
Mar
-17
Apr-
17
May
-17
Jun-
17
Jul-1
7
Aug-
17
Sep-
17
Oct
-17
Nov
-17
Dec-
17
Jan-
18
Feb-
18
0
20000
40000
60000
80000
100000
120000
140000
160000
January 2016 – February 2018
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Nu
mb
er o
f peo
ple
aff
ecte
dN
um
ber of em
ployers
Average of 10,000 medium size employers staging each month in April, May & July 2014
Employers staging Employees affected
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From 1/4/14 - 1.2 million employers to set up schemes
If as many as 5000 advisers engage in AE =240 SMEs per adviser
10.1 million employees equivalent
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• What is your approach?
• What is the pension provider approach?
• Will employers pay?The SME Tsunami
!
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Routes to market…
The SME Tsunami
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•Existing GPPs
•Existing HNW clients – small businesses
•Commercial and GB clients
•Telemarketing – in house/out sourced?
•Accountants and payroll bureaus
• Set up non regulated business• IFA/accountancy referrals• In association with bureaus?•Website marketing? Streamlined on boarding
OR refer for advice
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Employer Responsibilities and Actions
• Pre staging date
• At staging date
• Ongoing
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Some AE advice models
1. Full EBC model
2. Consult + Report + Handover
3. Implement plus use middleware
4. Consult plus install full payroll with integrated AE system
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Middleware licence Direct to Employer
50p per employee per month
Payable 6 monthly in advance
3. Implement plus use middleware
Middleware licence to IFA/Accountant
£500 up front
£10 per month plus…
40p per employee per month payable 3 monthly in advance
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Income Forecast (Assuming 100 employer clients with average of 6 employees each.)
Implementation income (3/4 years) 100x£600 = £60,000
Regular income from employers 100x6x£4pepm = £2,400 pm*
On-going cost of software £10pm plus 100x6x40ppepm = £250 pm
3. Implement plus use middleware*see The Pension Administrator suggested charges
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Seek referral to their PAYROLL PROFESSIONAL
[See flowchart]
Recommend they use the
Implementation services of TPA and AESolved
to run alongside their payroll
Seek referral to other
Employers and/orProfessional Connections
The Employer outsources their
Payroll and wishes to outsource their
Auto Enrolment Governance
The Employer delivers their own payroll and wishes to do their own Auto Enrolment
Governance
Has the Employer already resolved their Workplace
Pension requirements
The Employer delivers their own payroll and does
not wish to do their own Auto Enrolment
Governance
Recommend the Implementation and Governance Services
of TPA
Does the Employer require Financial
Advice in relation to either an existing
scheme or the new scheme
Seek referral financial advice
Potential customer: Employer
>YES >YES >YES >YES >YES
NO > NO > NO > NO >
Implementation FeesGovernance Fees
Implementation FeesCommission on Software Fees
Financial adviceFees
> >>
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Recommend Implementation and Governance Services
either direct to Employers or via
the PP
Recommend they use AESolved and outsource
Implementation services
Does the PP wish to deliver payroll but does not wish to
do the Auto Enrolment Governance
Does the PP wish to deliver a complete
payroll & Auto Enrolment service to
their clients
Has the PP already resolved a
Workplace Pension solution for their
clients
Discuss their solution and compare it to that offered by AESolved &
Governance Services
Potential customer: Payroll Professional (PP)
>YES >YES >YES
NO > NO >
Implementation FeesGovernance Fees
Implementation FeesCommission on Software Fees
> >
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Does the FA wish to provide an Auto
Enrolment service to their clients
Does the FA wish to be involved in the Auto Enrolment
opportunity
Seek referral to his Employer
clients/ PP & pay an introductory fee
Potential customer: Financial Adviser (FA)
>YES
Implementation FeesGovernance Fees
Commission on Software Fees
>>
Recommend they use AESolved (Multi User) for Implementation & Auto Enrolment
Governance services
Employer clients – refer Employer Sales Flowchart
Payroll Professionals –
refer PP Sales Flowchart
>YES
>NO
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4. Consult plus full payroll solution
AE consultation
Replace IFA payroll with new + full middleware
Implementation
Pension administration
Ongoing payroll revenue
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No of Employees Contribution Per Annum
Companies Converted
Contribution
25 £300 50 £15000
50 £600 50 £30000
100 £1200 25 £30000
250 £3000 15 £45000
500 £6000 15 £90000
1000 £12000 10 £120000
Total Contribution £330000
Revenue exampleBased on a £1.00 Contribution per Employee
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Why choose us to support you in the SME market?
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Free middleware
No underwriting of schemes – same terms for all
We will take ALL employers
One investment fund – simple – employers prefer it
We will take 2014/15/16 staging schemes NOW (no contributions ahead of staging)
Online sign up process – IFA in charge – no wet signatures
One interface file for all payrolls – simple on boarding