Punter Southall has rolled out an interactive auto-enrolment product to help employers understand the cost implications of the 2012 pension reforms.
The tool, PS Prepare, offers projections which show total costs, but can also be broken down by grade or segmentation categories (age and income group, for example), enabling employers to consider all their options and pick the contribution design that best meets their budget and reward strategies, while ensuring compliance with the new employer duties.
It will project contribution and administration costs for organisations from their staging date until 2018.
Alan Morahan, principal at Punter Southall DC Consulting, said: “October 2012 will see the initial wave of employers having to comply with the new regime and contribute to a pension for employees for whom they did not previously contribute.
“Our initial analysis has demonstrated that for some employers this additional cost could run to millions of pounds once the full phasing period has completed.
“Employers need to look now at how their pension budget will be affected by the new duties.
“Auto-enrolment stands to disrupt the balance between pensions reward strategy and budgetary constraints.
“PS Prepare can help employers quantify the true cost of their obligations, from contributions through to administration and compliance.”
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