View more on these topics

Govt urged to force employers to review auto-enrol provider

Loney-Phil-Royal London-2013

Employers should be given a new duty to review their pension provider three years on from the start of automatic enrolment, says Royal London.

In a letter to pensions minister Ros Altmann, the mutual calls on the Government to force firms to consider switching providers.

Chief executive Phil Loney says: “As the Office of Fair Trading found, employers often lack the capability or the incentive to assess value for money.

“Even if employers make a sound initial choice of provider there is no guarantee that the scheme will continue to offer competitive investment performance or high standards of member service into the future.

“It is vital that there is a vibrant pensions market where pension providers are held to account for both the price and quality of their products.”

Loney adds a “light-touch responsibility” for employers is needed to create a “thriving secondary market where incumbent provider face a real competitive challenge”.

Auto-enrolment was launched for the largest employers in October 2012 and will be fully rolled out by 2018.

Recommended

Iain_Duncan_Smith
1

Govt to raise auto-enrol upper limit and freeze £10k trigger

A move to raise the upper limit of the automatic enrolment savings band will boost pension savings by £23m. In analysis published today the Department for Work and Pensions says moving the upper limit of the qualifying earnings band to £43,000 in 2016/17 means pension savings will be £2.4bn, £23m higher than if the thresholds […]

3

MPs launch auto-enrolment inquiry

An influential committee of MPs has today launched an inquiry into automatic enrolment, focusing on how the reforms affect smaller employers. The Work and Pensions committee has requested written evidence on the implementation of auto-enrolment and the impact it will have on small and micro employers. The committee will focus its inquiry on the suitability […]

10

Stranded: Govt urged to bring self-employed into auto-enrolment

Pensions experts are calling on the Government to avert a savings disaster by bringing self-employed workers into automatic enrolment. The reforms require every employer to enrol staff in workplace pensions by 2018 but exclude people earning less than £10,000, the under-22s, those over state pension age, and people without an employer. At the same time, […]

1

Pension tax relief reform ‘will solve auto-enrol net pay problem’

Providers operating “net pay” automatic enrolment schemes will be forced to abandon the model, which denies low earners tax relief, if the Government presses ahead with radical reform to pension tax incentives. Since 2001, non-taxpayers have been able to claim tax relief on pension contributions. However, if schemes use the net pay model of paying […]

Europe: Domestic backdrop & China impact

By Rob Burnett, Head of European Equities In recent weeks equities have been buffeted by two shocks occurring at the same time: China’s devaluation of the renminbi and the prospect of the US Federal Reserve (Fed) raising interest rates. The market is not comfortable with the Fed raising rates at the same time that China […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Here’s an interesting extract this from Phil Loney’s quote:
    “there is no guarantee that the scheme will continue to offer competitive investment performance”

    What’s this, a scheme ‘churn’ based on investment performance?

    Providers. They just can’t leave that tired old bone alone, can they?

  2. Oh yeah thats a great idea. Just pile on more regulatory crap to the small and micro employers of the country, or force them to pay for someone to do this for them. That is really what they need. Get real.

Leave a comment