EBS

2012 heralds the possibility of pensions for all employees (see our summary guide) and in anticipation of that The Pensions Regulator and the Financial Services Authority have published a guide for employers ‘Talking to your employees about pensions’.

Page 9 of the guide highlights a series of fairly common questions which employees may raise which you are not permitted to answer. Some of these are shown below:

• How much should I contribute to get an adequate income in retirement?
• Should I transfer in a pension from my previous job?
• Should I suspend or reduce contributions?

In these instances the Regulators suggest that employees are referred to a financial adviser authorised by the FSA.

At EBS we specialise in delivering clear, easy to understand answers to employee questions - not only regarding their employee benefits but on any financial matters.

So don’t take the risk of straying into areas of discussions which are regulated by the Financial Services Act - talk to EBS instead.

With ‘pensions for all’ a likelihood once the National Pensions Savings Scheme (’Personal Accounts’) launches in 2012, how can you make your own pension offering a differentiator as a part of your recruitment & retention strategy?

The solution might be to apply for the recently launched ‘Pension Quality Mark’ awarded by the National Association of Pension Funds (NAPF) for defined contribution plans which meet the following criteria:

• Total contributions of 10% of which at least 6% is employer funded
• A charging structure of no more than 1%pa with evidence that the scheme is run in the best interests of its members
• A communication strategy which is clear, engaging and easy to understand

Whilst the measures themselves are attainable for many, the awards will only be received by those companies who seize the early initiative and secure the award whilst it will have maximum impact.

For further details of the assessment process and how EBS can help you with the process either read on or please get in touch. Read the rest of this entry »

October 2012 is the date earmarked for the launch of Phase 1 of the Government’s proposed National Pension Savings Scheme (NPSS), also known as ‘Personal Accounts’. Whilst no formal regulations have yet been announced, the latest proposals have far-reaching implications for employers and employees alike:

• Compulsory employer contributions
• Compulsory employee contributions
• Auto-enrolment to the scheme every three years

Read the rest of this entry »

Further to its previous report covered under our previous (catchy) post  ‘Are you sure that your defined contribution company pension scheme is well run?’, the Pensions Regulator published a further brief paper this month which praised the standards to which the ‘vast majority of schemes are well run by dedicated and hard-working individuals’.

It did go on to suggest that ‘For members of defined contribution (DC) schemes where members have more responsibility for the level of their eventual pensions, we encouraged review of investments, contributions and target retirement dates’. The paper also goes on to talk about the importance of member communication at this time in particular.

EBS prides itself on a high level of personal service and availability of advice for members of DC schemes, should you wish to review any of the aforementioned areas please get in touch.

STOP PRESS:
The Pensions Regulator issued a further bulletin in July 2009 restating the need for high levels of member engagement in light of the economic downturn with specfic focus on educating those approaching retirement about their full range of options.

Again though, the Regulator restates the responsibility of the employer ‘for regularly monitoring charges, reviewing scheme administration and investment options, producing effective member communication and checking that the scheme continues to meet the needs of their workforce.’

EBS is currently able to offer extremely attractive terms on stakeholder & group personal pension schemes which fufill each of the Regulators criteria for effective scheme design. For an initial assessment of your current arrangements and requirements, please get in touch.