Considering a shift in your workplace pension provider? That's a bold step towards ensuring your most expensive employee benefit is truly rewarding.
The pension plan you offer should mirror your company's brand. It's an effective means to make your employees feel cherished, and choosing the appropriate workplace plan can significantly enhance their engagement and, ultimately, job retention. Many employees remain with their existing employer pension for extended periods, regardless of:
- Potentially excessive fees
- Suboptimal financial performance of your scheme
- Scant or no assistance provided
Naturally, the idea of moving your entire team to a new pension plan, even one of the UK's top-tier pension schemes, can be intimidating. The array of benefits notwithstanding, it's common to question: is the change worthwhile? The heartening truth is that transitioning your pension provider is far less complicated than it appears. In essence, it's a breeze.
This article will guide you on how to switch workplace pension providers, one step at a time.
Is it possible to change my workplace pension provider?
The initial question likely crossing your mind is, can you switch workplace pension providers? You might not even have known that provider transitions were an option. Are you indefinitely tethered to one provider?Not at all. You are at liberty to change your team's pension provider whenever you want. This shift could substantially enhance engagement with your workplace pension scheme, without increasing employer contributions.
Steps to transition your workplace pension
Three primary steps are involved in transitioning your workplace pension.- Notify your new provider that you’re prepared to switch
- Inform your existing provider
- Provide your employees with details about the switch and the implications for them
Step 1: Select your new pension
The initial step is straightforward. Identify your new workplace pension provider. Various options are accessible in the UK, each with its own advantages and disadvantages. It's critical to invest time to determine the optimal choice for you.For instance, if your team is large, answering every pension-related query your team has about access and management is not feasible. You would prefer a provider that offers resources and support.
For start-ups, a flexible and modern pension that matches your innovative spirit would be suitable.
Step 2: Notify your current provider
The next step involves letting your current provider know that you’re transitioning and inform them about the scheme you're switching to. A simple email or call to your account manager should suffice. The two pension providers will manage the transfer, informing you when everything is complete.Step 3: Update your team
Lastly, you need to update your team on the developments. It's wise to alleviate any worries about their finances. You're making the switch for good reasons, so detailing any advantages for the employees will be beneficial. It's also crucial to indicate if you're transitioning to a salary sacrifice pension.Typically, a surge in pension-related inquiries may occur during this period as many employees seize this opportunity to delve into their pension, their plan, contributions, and so forth. Scheduling a ‘welcome session’ with your new provider to address these questions can be advantageous.
Penfold offers an introduction to the platform, how it works, and distributes a welcome package to all new members. We also allocate a dedicated pension manager to handle all your enquiries (such as understanding pensionable earnings), freeing you to concentrate on core matters. We’ll even integrate with your work chat platform for seamless question handling.
Switching to Penfold Workplace
Transitioning your team to the Penfold pension scheme is a piece of cake. Simply let us know where you’re transitioning from, and we'll handle the rest.Penfold’s workplace pension works better for everyone. Our pension experience is one everyone can enjoy, helping employees improve their financial wellbeing and businesses grow faster.
Contact Penfold today and learn how we can revolutionise your company pension. Or learn more about Penfold's award-winning workplace pension.
