Workplace pensions provider NOW Pensions announced on 17 September that they will charge employers a service charge of up to £40 per month to operate their auto enrolment scheme from January 2016.
This charge is being introduced to allow NOW Pensions to enhance its proposition to specifically meet the needs of smaller businesses, providing employers with the expert guidance they need. The company said the exact charging structure for employers has not yet been confirmed and will be determined following a consultation and research period with employers on what they want from their auto enrolment scheme.
Currently NOW Pensions does not charge employers to manage a scheme. However following Standard Life’s move earlier this year where they introduced a monthly charge of £100, it looks like both NOW Pensions and other workplace pension providers will follow suit.
The charge will not be applied to businesses already signed up with NOW Pensions, or to those that sign up before 30 September 2015 – even if their auto enrolment staging date is in 2016 or beyond.
The Pensions Regulator anticipates that there are still more than 1.2 million employers yet to reach their staging date with more than 500,000 businesses reaching this date in 2016.
Unlike larger companies that have staged before them, the majority of smaller businesses do not have in-house pension expertise and many are choosing to outsource to a payroll provider who can offer expert guidance. Statistics show that a quarter of employers turn to their accountant for this advice, and this is where we can help.
Our Employer Services team are ready and waiting to provide you with the expert advice you need. Give us a call today on 01228 711888 and let us remove the administrative burden of pension schemes from you. What’s more, if you accept the NOW Pensions scheme agreement prior to 30 September 2015 you will not be subject to future monthly charges. What are you waiting for… contact us today!