Employers using The People’s Pension for auto-enrolment will face a one-off charge to pay for enhanced support services, Money Marketing can reveal.
Businesses coming directly to the mastertrust will pay £500 plus VAT while employers working through an adviser will pay £300 plus VAT.
The new charge will be applied once when the scheme is set up and there will be no exit charge if employers decide to switch providers.
The changes will affect customers who sign up from 23 November and have staging dates in January 2016 and beyond. Employers with a staging date in 2015 but who sign up from 1 January 2016 will also be charged.
When the charging structure comes in, employers will be able to choose between a “simply comply” or “simply tailor” service, with the latter allowing a bespoke design for their schemes. Customers can also choose to automate different payroll options.
The People’s Pension’s customer service line will also have extended opening hours from January, from 8am to 10pm.
B&CE chief executive Patrick Heath-Lay says: “Workplace pensions can be alien to people outside the pensions industry. Our research and 30 years of experience working with small employers tells us they want simple solutions and a great deal of support in meeting their auto-enrolment duties. Our doors will remain open to everyone who wants to come to us, regardless of their size and their sector.
“That’s why we’ve developed a solution for busy people who just want to run their business, not get bogged down in pensions. Simplicity is the key.”
In November 2014, Money Marketing revealed B&CE – the firm behind the mastertrust – was considering adding an employer charge to cover costs at the smaller end of the market.
In September rival auto-enrolment provider Now: Pensions announced an employer charge for firms staging in 2016 and beyond.
The level of the charge will be set following a consultation but will not be more than £40 a month.