Paradigm Pensions director Steve Bee has launched an automatic enrolment and flexible benefits compliance product he says will allow IFA firms to become “mini employee benefit consultants” to SMEs.
In an interview with Money Marketing, Bee says Jargon Free Benefits allows advisers to enter employers’ existing payroll and pension scheme information into a database to determine whether the current arrangements meet the Government’s auto-enrolment requirements.
The system then provides information on the number of people who need to be enrolled into the company pension and the number of employees who are eligible and ineligible for auto-enrolment. Companies can register their information with The Pensions Regulator and run payroll and compliance reports.
The package offers small businesses flexible benefits, such as dental and cycle to work schemes for their staff.
Jargon Free Benefits is available exclusively to IFAs licensed with Paradigm for a monthly retainer of around £450. Eighty-one firms have signed up to the service, with a further 21 in negotiations.
Bee says the product will “fundamentally change” the IFA business model by allowing advisers to offer human resources services to small and medium-sized companies.
He says: “My aim is one million employees in the UK will be members of the Jargon Free Benefits system within the next four years. We already have the distribution capability.”
Whiteleaf Financial IFA Darius Paine says: “Most employers do not understand the compliance nightmare they are going to be faced with, so this tool is a useful solution.”