We have built our proposition with cost-efficiency, simplicity and performance as corner stones. Below is a detailed description of how we have applied these to our products and why our proposition is to your benefit. Do contact us if you have any further questions.
Flexible scheme design
Seamless integration with your existing payroll and HR systems
Our approach and systems have been designed to make integration with your electronic HR & Payroll systems as quick and easy as possible, with minimal additional administration. Our product has been designed to be sufficiently straightforward and flexible to fit simply and easily with your existing staff pay, flexible benefits & rewards and HR structures.
Employers can choose multiple contribution levels for different groups of employees within the organisation. There are no caps on contribution amounts (subject to HMRC limits).
Flexible branding to customise your workplace pension scheme:
For your pension scheme to be a success, getting employee buy in is critical. We assist in each step of this process by helping you to communicate with your employees on the benefits of their new pension scheme. We have a selection of standard communication materials which we can easily tailor to your needs. Our communications can be amended to fit your existing HR strategies and brand, to create a co-branded version or to be produced with just our own brand. We can even integrate these communications into your flexible benefit system. We manage all regular communications related to your pension scheme membership. We send out letters and member information directly to your employees, so you can focus on running your business.
No hidden charges. No hidden agendas.
NOW: Pensions has designed a simple and straightforward fee structure that could significantly increase the value of your employee’s retirement pot.
NOW: Pensions charges just 0.3% per annum in investment management, plus an administration charge of £1.50 per month (with reduced charges for employees earning less than £18,000).
These charges are usually deducted from the members’ pots, but employers can choose to pay these costs instead.
Strong track record
Combining long term performance with short term protection
We offer a single investment solution which consists of a Managed Diversified Growth Fund during the accumulation stage.
Investment Management is provided by NOW: Pensions Investment A/S, a subsidiary of ATP that is based within ATP’s offices in Denmark. Built on ATP’s experience and track record, the NOW: Pensions investment strategy is designed to try and achieve equity-like returns with a reduced level of risk. By diversifying investments and following robust risk management protocols to ensure liquidity, we aim to remain agile in all economic market conditions.
We believe that low volatility is key to ensuring that members continue to have confidence that their pension fund will deliver – we know that many pension scheme members stop contributing if they suffer large losses in the value of their fund. However, we believe that reducing volatility should not come at a price of reduced future returns.
One of our primary objectives throughout the strategy is to protect our investments against what can go wrong. For instance, we hedge 100% of our currency risk exposure as we do not believe that this risk can be adequately compensated for within the fund.
Because we are following the ATP investment strategy, with any local differences being built in to the portfolio management and implementation processes, we have been able to back-test our performance for the period 2007 – 2011.
Annualised Return NOW Managed DGF 7.39% FTSE All World 4.65% 60% Equity/40% Bond Portfolio 3.40%
N.B. Back-testing is a process of objectively simulating historical investment returns by applying a set of rules for buying and selling assets, backward in time, testing those rules, and hypothetically investing in the assets that are chosen. The performance of the NOW fund is hypothetical and does not represent actual investment performance. While back-testing results reflect the rigorous application of the investment strategy, back-tested results should not be considered indicative of future results. The returns do not take into account the deduction of charges.
Past performance is not a guarantee of future results. The value of investments may go down as well as up and the return of any investments is not guaranteed. Fluctuations in financial markets, currencies and other risks may cause fluctuations in the value of investments. Any fund objective or target should not be considered as a guarantee of performance of any fund. Derivatives may also be used for efficient portfolio management purpose.
This proven diversified investment strategy is available to NOW: Pensions members at a price that is usually associated with UK index-tracking funds rather than the usually more expensive sophisticated managed diversified portfolios that it compares to.
Supported transition into retirement
As members of NOW: Pension Trust your employees’ money will initially be invested in the state-of-the-art Managed Diversified Growth Fund. The Managed Diversified Growth Fund will use proven ATP investment expertise to strive to achieve strong, stable and long-term growth, as ATP has done effectively for so many years in Denmark. ATP has been able to perform significantly better than the [market] for the past 10 years, year after year.
Later, as the member’s chosen retirement date comes closer, their money is gradually moved in planned steps to the Retirement Protection Fund. This aims to ensure that the member is increasingly well-protected against an increase in the cost of buying a pension (the price of the annuity). This process is designed to protect the level of income received at retirement.
Close to the member’s chosen retirement date, some money is moved to the Cash Protection Fund, to ensure that the amount that can be taken as cash on retirement, which is normally paid tax free, is safe from any last minute market fluctuations.
This is it. As members of NOW: Pension Trust there is no need for your employees to make any difficult investment choices.
Full transparency and overview online
As an employer, you will be able to get a full overview of your workplace pension scheme online. In addition, all compliance and payroll reports will be available through your company’s personal ePension solution.
As an employee you will be able to see how your pension investments are doing at any time online or via our call centre. On your personal ePension you will be able to see how much you have paid in, how much your employer has paid in and what the total current value of your pension pot is. In addition, all charges are clearly stated, so you know exactly what you are paying.
All communications, whether written, online or over the telephone will be straight forward and communicated in simple, plain English.
The ability to transfer in other pension schemes
Enjoy same performance and low costs on all your pensions savings
As an employer you can help your employees and yourself with the additional flexibility to allow transfers in from other pension schemes. The consolidation of an employee’s existing savings has the potential to enhance the employer’s pension offer and improve the pension outcome for your employees – employees will be able to enjoy the same low costs on all of the pension savings that they transfer in. It’s free for employees to transfer in or out when this is managed online. Please note that the ability to transfer in benefits from existing pension schemes is sometimes subject to restrictions in those schemes.
As an employee, If you have other pensions from previous jobs or personal pensions, you can usually transfer these into your NOW: Pension. Please note that the ability to transfer in benefits from existing pension schemes is sometimes subject to restrictions in those schemes. You can transfer other pensions into NOW: Pension for free if you do it online. If you do transfer in any existing savings to NOW: Pensions you can enjoy the same low costs and stability on all of your pension savings.
With NOW: Pensions you can choose to provide simple low cost life insurance to all your employees at rates they are usually not able to access. This is an important benefit providing additional protection for their families.
Our life insurance solution is provided by Ellipse. You can read more about Ellipse on www.ellipse.co.uk
We will look to introduce some additional workplace savings products e.g. corporate ISA’s in due course.