Creative Auto Enrolment has become the latest pension provider to add an employer charge to meet the burden of servicing small firms
In a note sent to advisers, seen by Money Marketing, the provider says “the economic reality has changed” and from 1 March 2016 employers will be charged £20 plus VAT a month.
The charge will not apply to existing customers who accepted the firm’s service agreement by 18 January 2016.
Employers who sign up after the deadline will have the option of paying a one-off £300 plus VAT charge instead of the monthly payments.
Member charges are unaffected.
Creative Auto Enrolment has around 17,000 employers and 75,000 members registered.
It launched an end-to-end service in February 2015 including a master-trust using Scottish Widows’ investment platform and Pan Governance as professional trustee.
Now: Pensions and The People’s Pension have both introduced employer charges in recent months.
The note says: “You may be aware of the significant changes in the automatic enrolment forecasts issued by The Pensions Regulator as well other Government announcements recently that will have a significant impact on employers, their advisers and pension providers.
“The economic reality has changed and you will already know that other than the Government funded Nest scheme, key providers in the market have already introduced employer charges.”