Employee benefits firm Creative Auto Enrolment has launched an end-to-end online auto-enrolment service that promises to cut preparation time down to just 103 seconds.
The product is aimed at SMEs, typically with 30 members or less, and cuts out the need for middleware to handle data between employers, providers and payroll.
Employees will be enrolled in a new master trust run by Creative, using Scottish Widows’ investment platform and Pan Governance as the professional trustee.
Creative Auto Enrolment managing director David White says: “This will revolutionise the way auto-enrolment is carried out. Our research found it takes 103 man days to comply with auto-enrolment, we believe we’ve got that down to a sign up that takes 103 seconds.”
White says the service will allow employers to automatically populate the declaration of compliance – the biggest reason for employers falling foul of The Pensions Regulator, according to the firm. The system also runs assessment and communication compliance straight into the master trust.
He says: “This is a major step forward. The industry has had problems in moving data around between clients and providers and middleware systems. They do not have to do that with this system – they can go back to running their payroll like they used to, running their pension scheme without having to do any auto-enrolment compliance themselves.”
Employers are not charged to use the system. There is a 0.4 per cent management charge plus £2 a month per member. However, members earning less than £18,000 will pay 60p a month until 2018 when minimum contributions for auto-enrolment rise.
White says the overall charge for the offering is 0.67 per cent – well below the auto-enrolment charge cap of 0.75 per cent due to come into force in April.
Scottish Widows head of industry development Pete Glancy says: “We’ve always had a concern that there won’t be enough choice, capacity or competition at the smaller end of the market. We’re very keen that small employers have the same opportunities as bigger employers. While we tend to specialise with larger employers, we’re keen to support the smaller end of the market.”