New Pension Legislation

By now all SMEs who have been in business since 2012 should have a staging date for implementing the new legislation. You can check when yours is by going to: www.thepensionsregulator.gov.uk/employers/tools/staging-date and inputting your PAYE ref.

Have you chosen a pension provider yet? In my experience over the past two years it has been quite difficult to find one.

Why? – Because the big pension providers do not see the benefits and do not want the hassle of managing a pension scheme for twenty people, the admin’ is too much for the return they will get so they simply turn you away.

So what are the options? Well, the last resort is the government scheme, however, it is widely regarded that this will creak and may fail as many government led projects do. In addition, companies joining this scheme will be those who have left it to the last minute and the system will crash as they struggle to sign so many SMEs up who will be looking to join in May, June and July of 2015.

I managed to find a pension provider who is working hard with SMEs. They realise that there is a market and by bringing together 100’s or 1000’s of SMEs and pooling their numbers suddenly you are offering a pension provider with a pool of employees rivalling a blue chip company. In addition they are offering a choice for each individual within your company, so if Mr Smith wants to be risk averse but Mrs Jones wants to be a little more adventurous then that’s fine, they will manage that risk.

It was a struggle but well worth it to give employees the options they want with the buying power of a big player, the solidity of a long-term pension administrator, which makes a company feel it has made the right choice.

So, check your staging date. Are you ready?

Tony Martin