optimising processes to minimise administration

Smarter. Simpler. Better. 1

Smarter. Simpler. Better.

Niall Ferguson National Partnership Manager

Optimising processes to minimise administration


50 years experience

Award winning pension

fund

c£65bn Funds Under Management

• NOW: Pensions is a UK multi-employer trust

• First UK mastertrust to be awarded Pensions Quality Mark READY by National Association of Pension Funds

• Low cost operating model

• Subsidiary of ATP, Denmark’s leading pension provider

Who we are – heritage and backing

C151,500 employers C4.8m membersSource: ATP 2013 Annual Report


Wholly independent with a depth of experience to provide rigorous governance.

Nigel WatersonChair and formerShadow Pensions

Minister

Christopher DaykinThe Former Government

Actuary

Lord MonksMember of House of

Lords and Former General Secretary of

ETUC and TUC

Win RobbinsFormer Head of European Fixed

Income, Barclays Global Investors and Credit Suisse Asset

Management

Jocelyn BlackwellFounder of Dunnet Shaw and Raising

Standards in Pensions Administration

Trustee Board – Mastertrust governance


• Picking the right scheme for your employees is imperative

• The employee has no control in the decision making process

• They are being automatically enrolled

• You have their retirement fortunes in your hands

• It’s a big responsibility

A responsibility to your employees


• Auto enrolment is complex – you need a provider who will help to keep it as simple and hassle free as possible:

✓Handle assessment and opt-outs/opt-ins (when your payroll does not do this)

✓Handle all statutory communications as a managed process✓Interface seamlessly with payroll

• Robust proposition that won’t let you or your employees down

• Low cost to you and your employees

A responsibility to your firm


Compliance or something more?

•Basic compliance is the route currently favoured by most employers

•Give consideration to providing a package above the minimum – it may not be as costly as you think

•Well communicated benefits improve employee retention and productivity

•You can offer different provision to different employee categories

•We offer five different contribution models for greater choice and flexibility


Pension Quality Mark (PQM)

• Set up in 2009 to recognise good Defined Contribution pensions

• PQM Ltd not-for-profit and supported by The National Association of Pension Funds

• Supported by government, regulators, employer, industry & consumer groups

• 186 employers have ‘classic’ Pension Quality Mark for their scheme

PQM READY

• Set up in Feb 2013 to recognise quality Master Trusts

• NOW: Pensions was the first master trust to attain PQM READY status

• Standards on communications, governance and charges

• Six Master Trusts have gained PQM READY

Help to identify a good scheme


• Online sign up – set up a scheme within minutes, no lead time required when using standard models

• We don’t underwrite – guaranteed acceptance once application verified, no minimum member numbers or contribution levels

• Integration – we can run alongside any existing arrangements and collaborate with payroll and existing scheme providers

• Flexibility – happy to support full or partial integration of our solution

• Support – employee education toolkit and implementation support with highly experienced team

We seek to remove the

delivery burden whilst ensuring compliance and a full audit trail

What we provideEmployer and adviser control


• Simple and straightforward auto enrolment pensionNo hidden charges or fees - no hidden agendas

• Members always in control Personal member website, transfers in and out, lifestyling

• Low member charges We keep costs low to maximum savers pension pots

What we provideMember centric


What processes do you want to manage?


If only someone could help me with

all of this auto enrolment stuff…

Could we pay

someone to do it?

I don’t have time to deal with anything

else


So let’s look at the process…

Assessment Communications to workers

Opt-out/in Report generation

Support


Summary


Securing the right scheme

• 2014 is going to be busy - 30,000 companies staging over a four month period in mid-2014

• Plan ahead and don’t make any assumptions – the market is shifting - don’t assume your existing providers will be suitable or willing to accept your entire workforce

• Auto enrolment doesn’t have to be a trade off between good value for employer and good value for employees

• Keep it simple – complexity adds cost but delivers little extra value


• Pensions Minister keen to introduce “pot follows member” for auto enrolment

• The cap on workplace pension charges impacts most existing schemes

• Government may increase minimum contributions – widespread consensus that 8% contributions won’t be enough

• Certainly the provider and operational landscape won’t remain static

Don’t assume the legislation will remain static

optimising processes to minimise administration

Economy & Finance

national association

payroll

employer

good

responsibility

scheme

set

offer