NB. How would you describe the last two years following the introduction of auto-enrolment?

Carey Pensions -The last two years have been a rollercoaster and those in the business of pension provision have had to develop their proposition to meet the changing needs of advisers and employers. We believe that those committed to delivering a solution will need to be prepared to play the long game. This is not a business for quick wins, it is a business of pension provision for the long term, providing the vehicles and platforms to enable this to be achieved.

It is not possible to be in this industry half-hearted, if you are going to be in, then you have to be fully in.

NB. What is the Carey Pensions UK proposition for the auto-enrolment market?

Carey Pensions -The Carey Pensions UK proposition is in two parts. The first part is the auto-enrolment solution, which is either a bespoke assessment portal or a self service portal which enables employers to assess their workforce to provide communications as required to the workers. The auto-enrolment solution takes the administrative overhead away from the employer and allows them to be compliant with the assessment and auto-enrolment regulatory requirements.

The second part and the main part of our proposition is our workplace pension solution, and as an administration and trustee specialist this is the part where we believe we can add value.

We have an occupational DC master trust qualifying workplace pension scheme, with a default fund well within the charge cap limit, which also has other approved investment managers that can be advised on or chosen as an alternative.

If there are very senior people in an organisation, we are also able to provide group SIPPs bringing more flexibility and choice for our qualifying workplace pension.

Our service proposition is centered around the needs of the clients.

At the implementation stage, there is a dedicated administrator working with the employer, and/or their adviser to ensure they are established and set up with little stress.

 Every employer scheme has a dedicated administrator, who will deal with all the servicing on an ongoing basis once the scheme is established, receiving the contributions and investment of monies to the selected investment managers, providing management information as required.

NB. What have been the main challenges for you over the last 12 months as a provider?

Carey Pensions - The main providers NEST, NOW and People's Pension have to date won the lions' share of the marketplace, closely followed by a few of the insurance companies. However, some of the insurance companies have already started cherry picking and being selective in the type of pension scheme they will take and have put in certain criteria before they will even give terms.  The challenge is to ensure that our proposition offers something different.

The capping of the default fund charge at 75 bps from April 1st 2015, initially posed some issues for all concerned but these are now resolved and all our Master Trusts will be charge cap compliant by next April.

NB. How well prepared do you feel advisers and employers have been?

Carey Pensions - In the last six months there has been a very distinct change in the marketplace, which positions our company extremely well for the future.  The adviser community have recognised and appreciate this is a one-time only opportunity to add value to the benefits offered by employers for their workers and create a proposition they need. We have spent long hours working with connections in the development of their own proposition, and those that have moved forward are now seeing the start of the business coming in.  The recent NEST research published suggests that smaller employers need support and don't know where to go.  

The Pensions Regulator has indicated that there are a number of firms that should already have staged but which have not.

There is still a need for more communication and support; we will see a more direct delivery and simpler sign up process driven by technology in the next couple of years.

NB. What observations would you make which may help advisers and employers preparing to stage in 2015?

Carey Pensions -  Take time to read the guidance provided by the Pension Regulator on their website and start talking to your preferred pension provider now, in 2015 it may be too late. Make a decision early on auto-enrolment processes, and whether these would be taken care of by the accountant, payroll company, or whether a bespoke portal would be required. Most SMEs do not or would not understand the resource requirement needed in order to implement auto-enrolment and  the procedures that need to be developed and the ongoing requirement to run these processes each payroll period. Getting specialists in early saves a whole lot of time and heartache on an ongoing basis.

The Pensions Regulator is now beginning to exercise its powers of enforcement where continued breaches occur by certain employers. This will increase as the number increase.

NB. What issues do you envisage the huge number of SMEs will face in 2015 and 2016?

Carey Pensions -  SMEs will face the problem of capacity and they will find themselves being shoe-horned into a scheme that may not be the most appropriate for them if they have left the decision too late.  Doors will be closed.  So the sooner they establish and implement their chosen solution, the easier and better it will be. The numbers below will all be seeking a solution, there is not enough capacity in the pension industry to ensure that all companies will be compliant.

  • 152,900 employers must stage in 2015
  • 617,000 employers must stage in 2016
  • 533,000 employers must stage in 2017

 

Carey Pensions UK will accept any employer size and allow them to participate in their Master Trust Pension Scheme. Any scheme could be set up early for a small fee and would sit ready to receive contributions when the employer hits their required staging date.

NB. What would be your message to the SME world?

Carey Pensions -  Work with a partner that has the following to offer:

  • Solution that is right for them
  • Manageable and simple processes
  • Assistance and support provided
  • Relationship is customer focused
  • Technical systems that are streamlined

Find a SMART solution with Carey Pensions UK.
Contact us today to follow our SMART way.
T: 01908 336010     E: autoenrolment@careypensions.co.uk
www.careypensions.co.uk

Carey Pensions UK LLP is authorised and regulated by the
Financial Conduct Authority for its SIPP business FRN 501747.
The Carey Workplace Pension Trust is a UK registered Master Trust Occupational Defined Contribution Scheme, HMRC reference no:
PSTR 00787450RX