Royal London calls on TPR to expand approved auto-enrol list

Jamie Clark Scottish Life 2012

Royal London is calling on The Pensions Regulator to loosen the criteria for entries to its new list of group personal pension schemes for automatic enrolment.

Last month TPR announced it would publish a list of GPP providers who are open to all employers “regardless of projected membership numbers or contribution levels”.

Aviva, Standard Life and Legal & General say they intend to apply to be on the list, having scrapped minimum requirements over the past two years.

However, Royal London and Aegon will not.

Aegon still requires an average of £100 monthly contribution for new members of new schemes and £150 average monthly contribution for new schemes.

Royal London will not provide a scheme for firms with fewer than five active members.

Business development manager Jamie Clark says: “As a result, this does mean that Royal London, like many other workplace pension providers, do not meet all of the criteria set by The Pensions Regulator to be included on the proposed list of auto-enrolment providers.

He adds: “We believe that TPR should seriously consider pulling together a list of auto-enrolment providers who work with advisers to help employers achieve the best outcomes, rather than a list that could potentially leave employers still wondering what to do and with no or little help.

He adds: “We appreciate the good intentions of TPR of drawing-up a list to help employers in their selection of a suitable provider, but the current terms miss the important element of impartial advice, employer assistance and employer charging and we believe that TPR should review and reconsider the criteria they are using as a matter of urgency.”

Money Marketing understands four providers have approached TPR about joining the list, but only one has made a formal application.

TPR executive director for regulatory policy Andrew Warwick-Thompson says: “Publishing a list of GPPs in addition to our list of master trusts is the right thing to do. We have always been clear that for the hundreds and thousands of small and micro employers preparing to comply with automatic enrolment, a well-run master trust or a group personal pension is the best choice.”