Since the introduction of Auto Enrolment and many new Default Funds specifically designed for the mass market, it is worth remembering that Generation Employee Benefits now has 7 years of performance statistics available to compare and contrast, in some cases the differences are stark. There are also some anomalies in the market, such as NEST’s unusual investment stance for younger employees and some providers very high equity content of some funds.
Although it is not a legal requirement, Generation Employee Benefits certainly believe companies have a moral duty to have their pension scheme reviewed annually by a professional, for the benefit of employees and for the company’s future protection.
Since the introduction of Auto Enrolment, numerous companies have approached us wishing to improve the company pension scheme offering.
Pension scheme – Make it the best!
A fast growing online banking provider with circa 70 employees asked Generation Employee Benefits to review its existing pension scheme. The company had concerns over performance and charges and felt annoyance at the poor level of service.
Unfortunately, the major pension company chosen was not fully committed to the Auto Enrolment market and had recently sold their pension book, this contributed to the clients anxiety.
Generation Employee Benefits recommended a two-stage approach to ensure best advice. The first stage was to undertake an audit of the existing scheme, providing a thorough report on all aspects of the pension scheme and then making further recommendations if improvements could indeed be made.
Performance of the existing plan was acceptable and investment governance was in place, but charges were high and the company had lost faith in the level of service.
Our experts recommended switching to a new provider for the following reasons:
- Lower member charge – from 0.75% to 0.40%
- Better member online experience
- Improved and simplified online payment structure
- Dedicated account manager
- Improved fund governance
We also introduced Salary Exchange, with employer National Insurance savings increasing the members pension contribution.
As part of the implementation process, Generation Employee Benefits managed the bulk transfer of member benefits to the new scheme. This reduced administration for members.
All staff attended workshops hosted by Generation Employee Benefits so they understood the reasons behind the change and the positive effect of switching.
As part of the ongoing service package, we present an annual scheme review to the employer and hold annual seminars with staff to update them on performance, charges and any change in legislation.
You don’t have to opt for second best and in this case study we delivered a significant improvement in employer and member experience.
Share this Case Study