For immediate release: Wednesday 30th November 2011
It’s still ‘full steam ahead’ for NOW: Pensions, despite the Government’s proposed delay on auto-enrolment for small businesses.
NOW: Pensions formally established as UK Trust
“It remains ‘full steam ahead’ for the team here at NOW: Pensions, with the focus remaining firmly on gearing up for 2012,” comments Morten Nilsson, CEO of NOW: Pensions.
“We are ready to sign up businesses and will be in operation by 1st January. We have set up our trust and believe we have a very compelling offer and a robust business model, so we don’t expect the Government’s latest developments to result in any changes to our product offering. We have always said we would be willing to serve any company that can integrate with us in a sensible way, and our solution fits all types of companies and all their employees. In terms of our position in the pensions market, scale does matter, but there is still a very big market out there and plenty of room for new competitive offerings in the UK pension space.”
Morten Nilsson continued: “We can understand why, in the current economic environment, the government is trying to see how it can help small businesses grow. However, we believe this move disadvantages those people at the heart of Turner’s target audience – UK employees. Given it is usually smaller companies who tend not to have adequate pension provision in place for their employees, we question the logic and the long-term vision of the decision.”
“It is also important to consider other potential unintended consequences of the planned development. For example, it could lead many companies into spending money trying to avoid going over the “50 employee” limit rather than using the funds to provide their employees with a pension and helping them save for retirement. Furthermore, the delays could also have a knock-on effect on employee sentiment, whose confidence in auto-enrolment may start to wane, leaving them questioning whether the initiative will ever get off the ground.”
Nilsson concluded: “Formally establishing the UK Trust means the members of the Advisory Board now become official Trustee Directors for the NOW: Pensions offering, whose role will continue to be safeguarding the interests of members.”
– Ends –
For further information:
Shirley Hatherton / Jennifer Stevens / Pippa Gibb
Tel: +44 207 294 3615 / +44 7711 142 147
Notes for editors:
NOW: Pensions is a new multi employer trust, which will be operational from 1 January 2012. The investments will be managed by NOW: Pensions Investments, a subsidiary of ATP in Denmark and the administration will be carried out by Paymaster, an established UK third party administrator.
The NOW: Pensions Trustee Directors, whose role is to safeguard the interests of members, comprises well-known industry figures with different areas of expertise:
- Imelda Walsh, former Group HR Director of Sainsbury’s
- John Monks, member of House of Lords and former General Secretary of ETUC and TUC
- Christopher Daykin, former Government Actuary
- Nigel Waterson, former Shadow Pensions Minister
- Lars Rohde, CEO of ATP Group
The ATP Group
Arbejdsmarkedets Tillaegspension (ATP) / Danish Labour Market Supplementary Pension is a statutory pension fund. It was established as an independent entity in 1964 with the objective of ensuring a greater retirement income for the Danish population. ATP has since developed to become the largest pension fund in Denmark. Together with the tax-financed basic state pension, ATP provides basic income security in old age for the Danish population.
ATP covers almost the entire Danish population representing 4.7 million members and 160,000 employers. In addition to the ATP Scheme, the ATP Group administers a number of pension and social insurance schemes, including several for the Danish state.
The ATP Group assets amounted to approximately DKK 554 billion (GBP 65bn) and DKK 75 billion (GBP 8.9bn) reserves at 30 September 2011. ATP invests in a wide variety of assets globally. Investment categories are broadly: equities, interest rates, credit, inflation and commodities.