Employers can set up an auto enrolment compliant pension scheme within 24 hours

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Under embargo until 12.00: Wednesday 12 March 2014

NOW: Pensions has today launched an online auto enrolment sign up service which allows employers to have an auto enrolment compliant pension scheme set up for their employees within 24 hours*.

By logging onto a secure section of the NOW: Pensions website, employers can fill out an online form in a matter of minutes which covers all the information needed to set up a pension scheme.

At the end of the process a participation agreement is produced which the employer submits online without the need for a wet signature.

Scheme acceptance is guaranteed once the online documentation is verified. NOW: Pensions provides implementation details to the employer within 24 hours.

Five contribution models

Employers will select their scheme from five standard auto enrolment contribution models. The models have been developed based on feedback from employers, advisers and payroll providers and are designed to cater for all requirements, from those that want to comply with the legislation at minimum cost to those that want to offer their employees an enhanced benefit.

Plan 101: Auto enrolment standard

The minimum based on legislative total contribution requirements on banded earnings**.

  Employer contribution Employee contribution
Until October 2017 1% 1%
October 2017 – October 2018 2% 3%
October 2018 onwards 3% 5%

Plan 102: Auto enrolment plus

The minimum based on legislative total contribution requirements but based on basic salary.

  Employer contribution Employee contribution
Until October 2017 2% 1%
October 2017 – October 2018 3% 3%
October 2018 onwards 4% 5%

Plan 103: Stepped saving

An 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.

  Employer contribution Employee contribution
Until October 2017 2% 1%
October 2017 – October 2018 4% 2%
October 2018 onwards 6% 3%

Plan 104: Saving plus

A 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 saving

A 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.

The launch of the employer online sign up tool builds on the success of a similar service for advisers which launched in December 2013. Since that time nearly 300 applications have been received using the service.

Morten Nilsson, CEO of NOW: Pensions said: “Auto enrolment is entering a critical phase and effective, efficient online systems are essential in order to keep pace with the market.

“For employers reaching their staging date over the coming months, tackling auto enrolment can feel like a daunting and time consuming prospect. Being able to apply for and set up a scheme online in a matter of hours will make an onerous task much simpler and easier.”

 

–     Ends     –

For further information:

Amy Mankelow
NOW: Pensions
Tel: 020 3640 9075 / 07941 105879
amy@nowpensions.com

Victoria Leyton
Lansons Communications
Tel: +44 207 294 3620
nowpensions@lansons.com

Notes to editors:

*Provided employers use one of the five standard models as outlined. Scheme set up within 24 hours of the application being received.

**Banded earnings are between the statutory minimum and maximum limits as set out by the auto enrolment legislation. Basic pay is the basic earnings of the employee, excluding any fluctuating income, e.g. bonuses, commission, overtime, etc.

NOW: Pensions www.nowpensions.com

@nowpensions

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.

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

The NOW: Pension Trustee Directors, whose role is to safeguard the interests of members, comprises well-known industry figures with different areas of expertise:

  • Christopher Daykin, former Government Actuary
  • John Monks, member of House of Lords and former General Secretary of ETUC and TUC
  • Win Robbins, former Head of European Fixed Income at Barclays Global Investors
  • Imelda Walsh, former Group HR Director of Sainsbury’s
  • Nigel Waterson, former Shadow Pensions Minister

Charges are just £1.50 per month administration charge (reduced administration charge of £0.30 – £1.00 to be applied during auto enrolment phasing for lower earners) plus a 0.3% annual product investment management charge, with no hidden charges.

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NOW: Pensions was attractive to us because the staff were very helpful and they sent over all the information required. This made the decision easy. — Metro Surveillance Group Ltd
I am backing NOW: Pensions, the ATP project, because I believe it will encourage transparency, low costs and decent returns for millions of British employees. — Nigel Waterson, former Shadow Pensions Minister
I've known ATP for many years and have enormous respect for the effectiveness of their investment strategy. I'm convinced that NOW: Pensions can become a major player in the UK and look forward to being a part of that success. — Chris Daykin, the former Government Actuary
There is a need for a member-centric solution designed for ease of use with low costs and cutting edge investment strategy, which delivers long term stable returns. ATP's in-house investment capabilities, combined with our novel and innovative… — Lars Rohde, Governor of the National Bank of Denmark and Former CEO of ATP Group
NOW: Pensions has a good technical infrastructure combined with a pension product suitable for our team. We couldn’t be happier with NOW: Pensions. — Martin Woods, SALT.agency