Implementing Auto Enrolment

Auto Enrolment Registration Report to Feb 14

TAP Assist look at the new figures from the Pension Regulator for the number of people who have gone through the Auto Enrolment process and have been registered by their company.

The first 10,000…that was easy…?
We have done it, we have reached the first 10,000 registered companies to go through Automatic Enrolment registration…only 1,290,000 (ish!) to go…OK, so as a percentage it is not that many, but these are the largest employers, so we have had some big numbers go through this. Included in the Auto Enrolment Registration Report, over 3,000,000 new employees have been enrolled into a pension with nearly 8,000,000 who were already in a pension….er wait a minute…8,000,000 already in, what is all the fuss about, loads of people are already in a pension….?

Yes, this is true, but a large number of these employees will be employed by a government body of some sort (local, civil servants, teachers, police, NHS etc) but of the 3,000,000 plus new people auto enrolled into a pension, a large chunk will be from the retailers, which are usually blue collar workforces, so this is good news. 
SME’s on the way…
Let’s face it this is where the legislation is aimed at, the SME market. They didn’t take up stakeholder pensions in the way it was intended and we now have Auto Enrolment legislation…something like that! It is going to be interesting to see the press coverage over the next couple of months, with the first big numbers of employers hitting staging dates (12,000 plus in both May and July).

Good start, plenty more to go..

Please find the location of the report here

We are here to help if you are interested in TAP Assist taking the strain from implementing Auto Enrolment to your clients, please get in […]

Auto Enrolment DWP Research – Average Opt Out Rate 9%

Employers see a lower than expected opt out rate
Only 9% of employees opt out of Auto Enrolment: DWP research
 

New research by Department for Works and Pensions reveals that over 90% of employees who were automatically enrolled have decided to stay in their companies’ pension schemes. The research reviewed the top 50 employers in the country and the opt out rate is significantly below the figure of 30% that was widely predicted. The research also suggested that more of the under 30 age group were staying in and that the over 50’s were opting out, that is a little bit of a surprise…maybe the pension message is getting through!

The research then further reveals that where a pension was already offered and an employee had to actively join, employee participation nearly doubles. This is great news, the more people save the better their futures will be – if only by a little bit!! So could this be a desire, a need to save for the future

or could it just be apathy…apathy will have a part to play in this, but we think there are other reasons than just apathy. These are the largest 50 firms in the UK, they have the resources, the manpower, access to external consultants and the money to deliver Auto Enrolment and they had to get it right. So what did they do to achieve such a low opt out rate?

Well, we believe this comes down to:

Communications/employee engagement
Planning

A large part of the ASDA budget was down to their communication programmes. As another example, McDonalds pulled together its project team in November 2010 (over two years before its staging date) In a WSB article McDonald’s benefits and compensation manager Neal Blackshire’s advice to other employers […]

How To Charge for Auto Enrolment

Of the many questions that I get asked, “How and what do I charge for Auto Enrolment?” is still up there as one of the most regular.  Now I would like to point out that this question is being asked by some very good advisers; they have very successful businesses with good business models, quality clients and want to help their clients through the difficulties of Auto Enrolment (as well as the fact that they see opportunities in the future for additional solutions). So why are these good firms asking such a question – I believe there are a number of reasons, but the main one is that Auto Enrolment is actually really different from what an adviser would normally do.

Really good advisers are great with people, they empathise and understand their clients requirements and make recommendations (i.e. advise) against those requirements. The adviser knows that a particular product/solution will take in general “x” number of hours to complete and will involve these members of staff…easy…

Auto Enrolment is new and it has so many variables to it, it can make pricing a service really difficult.

At TAP Assist when looking at a solution for a client we look at three areas:

Data and Systems
Pension
Communication

We feel you should view things from a business problem point of view, a pension is not a solution for Auto Enrolment, it is part of it, but not the complete solution – hence the problems with pricing. Attached are three articles which discuss the potential ways to charge, with some examples of how Advisers are already charging for Auto Enrolment.

Two advisers’ tips for setting auto-enrolment advice charges
Just like that: How to charge for auto-enrolment advice
Why it pays to charge hourly for auto-enrolment advice

From […]