auto enrolment: to ae or not to ae?

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Smarter. Simpler. Better.

Auto enrolment:to AE or not to AE?

Niall Ferguson | National Partnership Manager

30 January 2014

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• NOW: Pensions is a UK multi-employer Trust

• Supported by ATP, Denmark’s leading pension provider

Low cost operating model:

• ATP investment team

• Equiniti Paymaster administrator platform

45 yearsc£70bn FUM

* Back tested data for the UK based on ATP’s investment strategy and NOW: Pensions’ implementation strategy to 30 Sept 2012

Who we are

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IPE Judges comments

“ATP just gets better and better… achieving the ultimate accolade as Best European

Pension Fund is not down to mere good fortune”

ATP 2011 IPE Investment Awards

•Best European Pension Fund

•Best Long Term Investment Strategy

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Why get involved in AE?• Fundamentally auto enrolment will present

additional work to you and your clients

• It is an opportunity to demonstrate support and solutions for your clients

• Minimise process interruptions and client anxiety

• You could increase your commercials by demonstrating added value

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What could happen if we don’t engage in the process?

Surely it’s nothing to do with us?

No comms zone

!Or is it. . .?

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If only someone could help me with all of this AE stuff…

Could we pay

someone to do it?

I don’t have time to deal with anything

else

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Is this an opportunity to increase clients/ earnings…

…or is it just about supporting the clients you have?

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So let’s look at the process……

• Choosing to take part in the process may make things easier

• We can transact to suit your processes

• We understand that by working with Payroll Bureaux we can mutually benefit

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3rd party carries out assessment

Run payroll

Send data

Middlewareruns assessment

Receivedata

Re-runPayroll

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Payroll bureaux runs assessment

Concurrent processes within software

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Auto enrolment solution – Schematic

1. Payroll assesses workers via software

Payroll Bureaux service

Employees

3. Communications issued explaining options and website• Entitled workers• Non-eligible job holders • Eligible jobholders

5. Confirmation of decisions including opt-out (paper based or email) Outcomes passed back to payroll

4. Eligible job holders go through self registration process to gain access to online decision system.

2. Outputs to be issued to NOW: Pensions

HRPayroll Pension provider

• Interface to HR with pension scheme indicators• Interface to Payroll with contribution deduction

• Interface of “joiner” info to Pensions Admin• Management reporting

6. Automated production of:

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Transact with multiple clients

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Integrated

• Actively setting up schemes with NOW: Pensions

• Maximising schemes held with preferred provider(s)

= optimise efficiency

client support and attraction

Partial integrated

• Promoting preferred provider solutions

• Supporting processes in a defined way

= optimise efficiency

client support and attraction

Passive

• Leave clients to decide on provider

• Leave clients to decide on processes

= client retention issues?

negative impact on processes likely

What approach will you take?

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We believe we can make things easier for all!

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4.7m members

C160,000 employers

It certainly works for our members!

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NOW: Pensions is a UK occupational pension plan. Membership is only available through an employer. NOW: Pensions Limited, registered in England and Wales. Registered address: 3rd floor, 164 Bishopsgate, London, EC2M 4LX, UK. Our VAT number is 127894966.

This is written as a general guide only. It should not be relied upon as a substitute for specific professional advice. Please note past performance is not a guarantee of future returns.

Any questions?nowpensions.com0 333 33 222 22