This article explains more about Qualifying Workplace Scheme for Auto Enrolment

 

Tony Towers is our adviser who specialises in Auto Enrolment.  He can be contacted on Tel: 01949 875 283 or Mob; 07748 101 530


For small employers he charges about £425 to set up a compliant scheme with you, depending on the complexity and offers an ongoing service where he is available to answer questions and give assistance throughout the year.


Company Pensions

Basic Qualifying Workplace Scheme for Auto Enrolment
Setup Advice Fee £425 payable on registration with provider

We have a simple, fully compliant Auto Enrolment Solution whereby the pension provider takes control of all requirements for you, they will set up the scheme for you, assess every employee at commencement and every payday thereafter, they will compliantly communicate with all your employees what is happening at the appropriate time, both at commencement and thereafter, they will also liaise with your payroll when necessary, and register your scheme with the Pensions Regulator.

As advisers, we are on hand to hold your hand throughout the process and can offer additional support and advice if required.   There is no initial or ongoing cost to the employer as all the scheme fees are paid from within the government's ongoing scheme price cap, as defined within the legislation.

The default fund is a cautious managed Scottish Widows fund, with a small selection of additional Scottish Widows funds which members can select if they chose to do so.  

The Provider will accept all companies from 2 members upwards.

Full Assessment and more complex requirements - Advice Fee - £750 to £2,500 dependent on complexity

OR Adhoc ongoing advice fees - £500/day + expenses
OR Adhoc Individual Employee Meetings per employee/per hour - £150

GPP / Auto-enrolment Alternatives for Key Employees

All qualifying employees, without exception, must be either auto-enrolled or enrolled into a Qualifying Workplace Pension Scheme (QWPS) (QWPS = Pre-existing scheme).

However if a QWPS  is not available and the auto-enrolment scheme is not of a high enough quality, a key employee may also be offered an alternative individual solution of a higher quality, provided that the employee is clearly communicated with and offered either option and makes a clear selection.

Schemes such as Nest have a very limited fund choice, a low annual management charge of 0.3%, but a relatively high contribution charge of 1.8% and cannot offer advice or payment of advice via the pension fund, which means any advice required would need to be sourced and paid for separately by the employee.  These schemes are set up for very large numbers of employees and therefore the investment strategy will be set to a very cautious style and may well be little more than a facility to hold & receive contributions.

Other providers may have an annual management charge of 0.75% with no contribution charge but still with limited funds and no access to advice.   

An alternative to this would be an individual pension fund offering, with access to the most highly regarded funds and fund managers, with proven track records of better historic returns where higher charges are justifiable.

In addition access to ongoing advice which includes: all administration, asset allocation according to risk profile, fund switching, annual or more frequent reports, including analysis of total contributions, current and historic growth & benchmark comparisons, current and historic values, with the facility to amalgamate any existing pension funds and access to advice 24/7 including at retirement advice.

This alternative option would cost:

  • No ongoing advice option:
  • Annual Management Charge typically between 0.55% to 1.25% (dependant on funds chosen)
  • plus a 1% initial contribution charge


With Ongoing advice option:

  • Annual Management Charge typically between 0.95% to 1.75% (dependant on funds chosen)
  • plus a 1% initial contribution charge

GPP Employee Reduced Rate Ongoing Personal Advice and Administration Service

Initial Fee: 0.75% of contribution (reduced from normal 1.00% charge)
Ongoing Fee: 0.5% of fund value per year
Example of GPP Personal Advice costs in Cash Terms
Example 1; if your regular contribution is £150 our initial fee per month is £1.12.
Example 2; if your pension fund is valued at £30,000 one year of ongoing service and reporting would cost £150. This amount will increase if the fund value increases and will reduce if the fund value reduces.

* Employers with greater than 50 employees or individual cases seen as more or less complicated actual rates may be negotiated


Our Independent Financial Advisers are always happy to meet at our clients' preferred location and time and to have detailed initial discussions with no obligation.

Please contact us by calling 01949 836173 or email us on This email address is being protected from spambots. You need JavaScript enabled to view it.