Crawley & Gatwick Chamber of Commerce
Press Release – 28th June 2016
Help at Hand for Local Business Owners with Auto-Enrolment
Local Crawley businesses have been encouraged to look towards new automatic enrolment pension schemes by a leading pension provider.
The Crawley Chamber of Commerce members met at Broadfield Stadium on Tuesday to discuss the possibilities that The People’s Pension and other automatic enrolment workplace pension schemes can offer as the new Government legislation takes effect.
Launched in 2011, The People’s Pension is the largest private sector multi-employer pension scheme in the UK, boasting over 2.1 million members and over 38,000 accounts under management nationwide. Their members come from a wide range of businesses, from big national high street retailers to small local firms.
Founded by not-for-profit organisation B&CE, based in Manor Royal, the scheme was created to offer a platform for employers of all shapes and sizes to tackle the auto-enrolment program first implemented in 2012.
The People’s Pension provides businesses with help to comply with the new Government regulations. These laws state that all employees aged 22 and earning more than £10,000 a year must be placed into a pension scheme. Employees earning more than £5,824 per year but under £10,000 and aged 16 to 74 can opt in. Those of the same age earning less than that figure can also ask to join a pension scheme, but the employer is not obliged to pay into their pension pots. All of these employees must be given an option to opt out of the scheme, but they will be re-enrolled in three years’ time.
The People’s Pension provides savers with seven different investment funds to choose from. The cost to sign up to their high support solution is £500 plus VAT with a 0.5% AMC for members (Annual Management Charge). Employers who sign up through an intermediary such as local accountancy firm Kreston Reeves can access a reduced rate of £300 plus VAT.
Many local business owners were present to pose their questions about the new system.
William Finch, Payroll Intermediary Relationship Manager at The People’s Pension, said: “There is no reason why employers can’t use The People’s Pension as a normal pension for their staff, but many find our inbuilt auto-enrolment software capabilities useful to have. We currently have over £1 billion in assets under management, which is a massive achievement considering we began from a standing start in 2012”.
Mr Finch also went on to insist that The People’s Pension will be able to handle the sudden influx of clients stating: “we feel very confident that we have a scalable business with enough capacity in staff to cope with the new surge of customers”.
Paul Roe, President of Crawley & Gatwick Chamber of Commerce and Partner at Kreston Reeves, added: “Today is a day that you should take away and tell your friends about. Normally as a business we don’t recommend anyone, but for as little as £300 (plus VAT, subject to terms and conditions) this really can provide a great offer for small businesses”.
Whether businesses choose to use The People’s Pension is up to them as other automatic enrolment providers are available. However, all employers must comply with their staging date given by the pension regulator if they are to avoid heavy fines. The meeting proved vitally important in informing employers of the options that are available to them ahead of their staging dates.
For more information please visit www.thepeoplespension.co.uk or www.crawleychamber.co.uk or contact firstname.lastname@example.org for media enquiries
The People’s Pension won the 5* Defaqto Award.
The employer minimum contribution until 5th April 2018 is 1%, increasing to 2% until the next year and then 3% from April 2019. The minimum employee contribution is currently 0.8% until April 2018, before increasing to 2.4% the next year and 4% by April 2019. Non-Compliance with these regulations yields an on the spot fine of £400.