I recently wrote that so far all was going to plan in the world of Auto Enrolment. And it almost certainly is if you are a medium sized employer with ample time to your staging date, you’ve completed the tendering process with a top quality pension provider and your scheme is working its way through the design phase.
However I received a communication from a leading insurer last week advising that with immediate effect they would no longer consider taking on new group pension business from employers with less than 6 months to their staging date. Now if one pension scheme provider is taking such a strong stance then you can be certain the others are thinking it.
So what does this mean? It means that all employers staging on 1st May – that’s businesses who employ between 90 and 159 workers – need to have already secured a provider to run the Auto Enrolment process or they may have missed the boat on the best options, leaving them with limited and expensive choices. There is a ‘service break’ in the process for June and so the next ones up for 1st July staging date are those employers with 62 to 89 staff.
No-one quite believed pension companies would reach the point of saturation so quickly and it makes complete sense that they limit new intakes of business to ensure the pipeline keeps flowing. It does of course emphasise the need for advisers to be pro-active and ensure their clients don’t end up left out in the cold …. and here in the North of Scotland it can be very cold!
If you need guidance in a suitable approach to your clients please contact me and I will be pleased to help.