Like most small businesses we’re aware that auto-enrolment is looming, but as our priorities are geared around what’s happening today, tomorrow or next week – we ‘re only just starting to get the wheels in motion.
Hearing yesterdays’ news around the Government’s plan to cap management fees charged by pension providers to between 0.75% and 1% is food for thought. Without a Pensions department to fall back on, (if only), not only do small businesses have the administrative headache of setting a scheme up, news about this cap reinforces our duty of care to make sure it’s a mighty fine one!
The BBC reported yesterday that pensions Minister Steve Webb said the government would launch a “full frontal assault” on pension fees.
Consumer group Which? said it welcomed the plan for a cap but urged ministers to see if it could be set even lower than 0.75%.
Executive director Richard Lloyd said: “Even a fraction of a per cent can have a significant impact on pension funds, and people need to be confident that their scheme is giving them the best value for money.
“We also need to see tight regulation so these charges can’t simply be hidden elsewhere, and the government should look at what can be done to bring down charges on existing schemes set up before 2001.”
See full article http://www.bbc.co.uk/news/business-24736960
The Pensions Regulator website gives some useful planning information http://www.thepensionsregulator.gov.uk/employers/planning-for-automatic-enrolment.aspx
So it’s time to get moving: be sure of your ‘Staging date’, find a provider, analyse costs and the financial impact, make sure your payroll is able to cope and keep your employees informed.
And if you really can’t face organising this yourself, or if your payroll isn’t up to scratch get in touch!