Legal & General has scrapped its £1,000 auto-enrolment scheme charge for small and medium-sized employers as part of a move to set up all schemes online.
In September 2013, Money Marketing revealed how the insurer was charging employers a one off £1,000 fee to set up auto-enrolment pension schemes with fewer than 500 employees. The charge was in addition to the member-borne costs of running the scheme.
But now L&G says all new schemes will be created through a new online portal and will not have to pay the charge.
It says SMEs will able to set up their scheme within 30 minutes and have it fully live within a day.
L&G chief operating officer Jim Islam says: “With tens of thousands of SMEs reaching their staging dates over the next few years, there’s huge need for a straightforward, self- service online solution so they can set up their scheme quickly and easily.”
“Schemes joining our workplace platform only pay 50bps for our default auto-enrolment multi asset fund. I believe this package in conjunction with our new online system is a compelling proposition for SMEs implementing auto-enrolment.”
L&G already has over one million auto-enrolment members.