Plan to publish list of pension providers scrapped
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The Pensions Regulator has come under attack for dropping its plan to publish a list of pension schemes available to small employers.
In November 2014 The Pensions Regulator (TPR) issued a consultation document on a proposal to publish a list of pension schemes that are directly available to any employer. However, following a number of issues which arose from the consultation, this published list will not be going ahead.
TPR says it has dropped the plan because of the challenges of setting and monitoring criteria for the inclusion of schemes on the list and had concerns that some suitable schemes may be excluded.
Now: Pensions chief executive Morten Nilsson has described the failure to move forward with the list as a ‘serious blow' for small businesses looking to source a scheme and highlighted the way the decision favours Nest, which is the only scheme actively promoted by TPR.
Nilsson says: "The news that TPR won't be publishing a list of pension schemes that are directly available to any employer for auto enrolment is a major disappointment and a serious blow for small firms trying to comply with the legislation.
"The consultation TPR launched in November 2014 clearly identified that there was a risk that employers might struggle to find a suitable scheme for auto enrolment and outlined measures to address this issue.
"It's a great pity that despite the majority of consultation responses being supportive, TPR encountered obstacles that meant it was unable to find a way to get this pragmatic initiative off the ground.
"A list would have helped employers avoid wasting their time with providers that aren't interested in their business, supported those that are committed to serving the whole market and helped manage the vast volumes of employers that will be seeking a scheme.
"As a trusted source of information on auto enrolment, The Pensions Regulator has considerable influence. It has direct communication with every company about auto enrolment but has only ever actively promoted Nest.
"The publication of a list of providers would have helped to level the playing field and encouraged employers to think more carefully about which scheme is best for them and their employees.
The People's Pension says the decision jeopardises the success of auto-enrolment.
The People's Pension director of policy and market engagement Darren Philp says: "We believe this decision significantly jeopardises the success of auto-enrolment. The Pensions Regulator's anti-competitive stance will limit choice for smaller employers and is a further leg up for the Government-subsidised provider. The Regulator needs to urgently think again if it wants employers to have real choice and avoid fundamentally distorting the market by only signposting NEST."
Preparing for auto-enrolment
From March 1 2015, businesses with fewer than 58 employees will have to start automatically enrolling employees for a workplace pensions while companies with 30 staff or fewer will need to begin auto -enrolment from June 1 2015.
Some pension providers have been known to be unwilling to take on business if the employer is within 6 months of its staging date, so SMEs need to act fast.
Given that the Pension Regulator's recent report found that only 35% of small businesses understand auto-enrolment and pensions, it is integral that employers start to look at their options now and decide on the pension provider they will be using.
How can ActSmart help?
Without TPR's published list of available schemes for small business it can be difficult to know where to turn for advice and guidance on the right scheme for your business. ActSmart have created a service to help businesses find out what they need to do and get a pension provider in place.
Firstly, check your staging date here. Whether your deadline is as soon as March 2015 or as late as 2016 - it's never too early to start planning and ActSmart can help.
ActSmart have made arrangements to introduce you to Elliott Sanders of Copthorne Hundred Wealth Management, a Partner Practice of St. James's Place Wealth Management.
St. James's Place Wealth Management are one of the leading wealth management organisations in the UK with a national network of advisers. Using their experience, they offer businesses and individuals a wealth management service, incorporating pension advice. The advice is face-to-face and tailored to your business or personal objectives.
- Complimentary initial consultation
- Face-to-face advice
- Impartial advice
- Advice is guaranteed by St. James's Place when recommending any products or services provided by the St. James's Place Group
Phone Elliot Sanders's team on 01372 721616, or fill out the enquiry form on this page to find out more.
Don't forget, ActSmart can help your business with Pensions advice along with over 25 other business support services. Click here to view them all or contact us.