Technological support for employers and improved outcomes for employees will be the drivers in delivering a successful automatic enrolment strategy, according to Scottish Widows.
Online support tools that help employers manage different pension solutions across their business and making it easier for advisers to support their customers will help ensure that employees have a pension solution tailored to meet their needs.
The technology behind the Scottish Widows automatic enrolment solution includes three fundamental components:
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A suite of support tools for employers, helping them comply with their new employer duties more confidentlyand more cost effectively.
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Increased flexibility for financial advisers in structuring Consultancy and Adviser Charging agreements (postRDR) enabling them to support employees and drive improved outcomes at retirement.
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An investment in technology which drives down costs and supports a segmented approach for employerswho wish to use alternative providers such as The People’s Pension from B&CE or NEST, specifically to meet the needs of lower paid employees.
To further support and accommodate employers with a diverse workforce we have today announced details of a framework to work alongside The People’s Pension from B&CE. This framework will enable employers to present their entire workforce with an appropriate pension proposition bringing together the Scottish Widows Group Personal Pension with The People’s Pension. Whilst in most cases the employer’s needs will be fully met through a single provider there are some situations when a single provider may not be appropriate for the entire workforce. In instances where segmentation is required, this framework will enable employers to manage their entire workforce through a single process and interface, reducing the administrative burden of operating two schemes. Peter Glancy, Head of Corporate Pensions Proposition for Scottish Widows said:
“We are putting in place a series of major building blocks which will form our Auto Enrolment proposition, designed to operate in the world beyond the Retail Distribution Review. Comprehensive support for employers and a drive to ensure good outcomes for employees at retirement underpin our strategy.
“The partnership with The People's Pension, from B&CE, is an additional building block. By working together we can drive charges down, ensuring that employees are only paying for features which are appropriate to them. B&CE has decades of experience in managing low paid and mobile workers at low cost and on an industrial scale. We believe employers with a diverse workforce structure will benefit from our combined expertise."
Paul Murphy, Director of Customer Development, B&CE said:
“We are delighted to be working with such a well respected organisation. We believe that B&CE and Scottish Widows have shared values which create a natural fit. This collaboration will provide employers with a flexible and simple solution to their automatic enrolment obligations, removing as much of the administrative burden as possible, whilst giving the best possible deal for their entire workforce.”
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