Key point
• If not managed effectively, the auto-enrolment process could expose employers to financial and reputational risk
The auto-enrolment process is a complex matter, so employers need to find a versatile solution that handles management requirements efficiently but is straightforward to use, says Morten Nilsson
Now: Pensions is based on the principle that everyone deserves a better deal on their pension scheme. There is a clear need for improved pensions provision in the UK. Current offerings are subject to high charges, poor performance, unnecessary complexity and unaligned interests at the cost of savers and businesses.
Now: Pensions is new to the UK, but not new to pensions and we know things can be done more simply, more easily and more cost-efficiently and this is what we are doing. Now: Pensions is working closely with giant Danish pension provider ATP to deliver a totally new pension scheme model for the UK workforce.
These principles of simplicity and ease of delivery also extend to the need to help HR and payroll departments manage the challenges of the impending auto-enrolment process. If not managed effectively, this will expose the employer to financial and reputational risk and challenge the resources of payroll departments that are already faced with many other tax and national insurance complications.
The Now: Pensions auto-enrolment solution adopts the ethos and ideology of our own business heritage from ATP: simplicity, efficiency and keeping things easy for our clients and members. This focus works to reduce the impact of administration and compliance on employers, leaving them free to devote more time to running their own businesses.
The offering for auto-enrolment sits firmly in the middle of the employer/employee/pension scheme relationship and will provide employers with a seamless management tool to ensure their legislative duties can be fulfilled. It is underpinned by clever use of technology, both in its processes and reporting, delivering easy online access for all employees to implement the options that are relevant to them.
Key features include: the auto-enrolment functionality is fully integrated with the existing Compendia administration software, ensuring a seamless link with existing Now: Pensions services; it will work with any HR and payroll platform; it maximises automation, such as automated employee and employer communications, which will improve efficiency, accuracy and timeliness; The Pensions Regulator’s common data check can be carried out as part of the assessment process; and it encompasses a pre-joining site to allow employees to select the amount they want to contribute or to opt out if they wish.
The Now: Pensions auto-enrolment solution is now in the final stages of testing and will be rolled out in April 2012.
Morten Nilsson is CEO at Now: Pensions
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