Two rival auto-enrolment pension schemes have united in condemning The Pensions Regulator’s decision not to publish a list of providers that cater to the small and micro market.
Earlier today, the regulator said it had rejected the idea of giving employers a list of available pension schemes because it would be ”disproportionately onerous” for schemes and the regulator to conduct the kind of assessment needed to maintain the list.
Now: Pensions chief executive Morten Nilsson says: “As a trusted source of information on auto enrolment, The Pensions Regulator has considerable influence. It has direct communication with every company about auto enrolment but has only ever actively promoted Nest.
“The publication of a list of providers would have helped to level the playing field and encouraged employers to think more carefully about which scheme is best for them and their employees.”
The People’s Pension head of policy Darren Philp says: “Competition and choice for employers is a good thing. The whole point of this consultation from the regulator was to help employers find good pension schemes and to signpost schemes that are open to all, but it’s not doing that – it will only flag Nest.
“That’s a significant market distortion, it means it’s much more difficult for any provider to compete with that when it comes to the SME sector.
He adds: “The regulator is doing good work and so we want to direct employers to their website so they can make best use of that but why would we if all the regulator is doing is marketing a competitor?
“They’re putting all their eggs in Nest’s basket.”