Aegon has signed an agreement with Nest to work together to help firms running auto-enrolment strategies which offer schemes from both providers.
The deal includes providing tailored communications to employees and helping firms get maximum value from the schemes.
The two providers have signed a ‘letter of understanding’ which will integrate the auto-enrolment process for both providers, provide an “agreed strategy for communications”, prepare joint bids to corporate customers as well as provide regular reviews of how the two provider’s offerings are working together.
Aegon says the agreement is the first of its kind.
Aegon UK group marketing director Paul McMahon says: “The Nest scheme will be fully supported through our auto-enrolment hub to centralise the calculation and transmission of contribution information, employee opt outs and automatic re-enrolment. We believe this dual scheme approach and our close working relationship with Nest will reduce the administrative headache for employers and help them engage with a broad spectrum of employees to get them planning for retirement.”
Nest chief executive Tim Jones says: “Nest has been built to work alongside existing provision and is specially designed for its target market of people new to pension saving and their employers. We are very pleased to be working with Aegon as one of our partner providers.”
Aegon’s software hub is expected to be up and running in the last three months of this year, with auto-enrolment due to get under way for the largest employers from October.