Friends Life is collaborating with Nest to develop a tool for employers that will direct employees to either employer pension arrangements or Nest.
The tool will decide which option is best for employees based on their salary and pension contributions.
Friends Life corporate pensions spokesman Martin Palmer says: “Most admin systems rely on the employer to tell us which members they want to enrol into their pension scheme. We will form that link between employer payroll systems and provider admin systems.”
Worldwide Financial Planning IFA Nick McBreen says: “This sounds like a recipe for disaster. Employers need to get the right scheme to look after employees and the business and it is not as simple as flipping a switch.”
Nest managing director of scheme development Helen Dean says: “We are talking to lots of providers and employers about how Nest can work with them and with third parties to ensure a comprehensive and seamless service.”
Andy Briggs interview in Retirement Strategy