the provider adviser relationship

Smarter. Simpler. Better.


The provider adviser relationshipMoney Marketing Auto Enrolment Invitational September 2014Martin Olive | Strategic Partnership Manager


Agenda• Auto enrolment environment 2012/13• Auto enrolment environment 2013/14• Auto enrolment environment 2015+• The current provider adviser relationship• The provider adviser relationship 2015+• The adviser/payroll bureaux ‘golden bullet’• Your choices for 2015


2015+

The auto enrolment environment

2012/13 2013/14 2015+


2015+


2012/13 2013/14 2015+

AE environment 2012/13


Employer Provider Payroll Adviser




Employer Provider Payroll AdviserBespoke solutions (Ceridian etc.)

Expensive

Late to auto enrolment market – RTI

Limited AE capability – assessment only?

Most – no assessment

Most have existing scheme(s)

Review existing schemes

Contain costs

Project manage across multi depts.

Rationalise existing employee benefits

Consult with employees/members

Already engaged with most employers

Keen to retain/add to

New scheme/tier for low paid workers

Bidding for most new employer business

New providers (MT) direct to employer

Designing middleware – tie in employer?

Birth of independent middleware solutions

Project manage across pension / payroll providers

Project Manage across employer depts.

Research pensionsand providers

Design employee communication plan

Workplace activity

EBC firms dominant

New non regulated businesses starting




2012/13 2013/14 2015+



AdviserEmployer Provider PayrollMost doing assessment

Most charging high implementation fees

Messy! First stagers are guinea pigs

SAGE and IRIS –full AE modules

ADP, Pegasus also better integrated solutions

Most have existing scheme(s)

Review existing schemes

Contain costs

Project manage across multi depts.

Rationalise existing employee benefits

Consult with employees/members

Becoming more selective

Late decisions

Removing commission

Charging set up fees?

Becoming stretched – patchy service

Master Trusts taking transient worker schemes

Project Manage

Employer business consultancy?

Pension research – Terms– Provider middleware?– Charge cap?

Looking for recurring income – how demonstrate value?

Using middleware – Jargon Free Benefits?

Workplace clinics



2015+


2012/13 2013/14

AE environment 2015


AdviserEmployer Provider PayrollFour or five dominate

Mainly via bureaux

Full AE solutions – low cost

Micro employer solutions

Off the shelf MT solution – “Emergency Service”

Pulling out/very selective

Master trusts dominate

Simplifying propositions

Developing “self serve” tools and guidance

Payroll bureaux solutions

Delegated access for advisers

Volume/transactional

Research – technology (F&TRC) NOT pension (Defaqto)

Partner with limited number of Pension Providers

PM – handover at staging – majority

Joint proposition with Accountants

Middleware used with limited number of employers

What do I do?!

Limited resources

No specialist depts.

Every day a challenge – Auto enrolment is big issue. By 2017 – most do things manually?

Just make me compliant

No extra cash/no resources

Not interested in added benefits?

AE environment 2015


Provider adviser relationship 2014

“Fractious?!”

The current Provider Adviser relationship


Outsourced provider

Can I trust you?

Will you upsell to my client?

What is the contractual relationship?

Master trust

How do you work?

How do I deal with you?

Are you safe?

Which have robust governance?

No support on the ground?

Selling direct to employer? What does

that mean?

Traditional provider

Are you in or out?

Terms too late

Charging set up fees

Reducing commissions

Middleware too restrictive /doesn’t do what it claims

Will they comply with charge cap in 2015?

The current Provider Adviser relationship


%93

of IFAs stated growing numbers of providers will not offer AE schemes to smaller businesses

of IFAs are confident that providers will effectively manage AE service in 2015

83%No. 10%

Source: Defaqto IFA survey August 2014


The provider adviser relationship 2015+

In conjunction with you, peace of mind – the whole implementation and ongoing process.

Master trusts• Solutions for ALL your clients• Slick integration with the

main payroll providers• Generally charge cap

compliant and auto enrolment compliance – clients AND you

• Repetition = efficiency, knowledge and trust

AE managed services• Valuable assessment

(AE and overall costs) and planning tools

• Clean data• Do tasks you do not want

to do/aren’t capable of• Genuine total AE expertise

The Provider Adviser relationship 2015


Developing a partnership– Accountants are the key – ‘golden bullet’– Added value – pension transfer facilitated charging– Joint campaigns– Affinity opportunities– Adviser portal and employer schemes access– Employer self serve = defined adviser role

• Common employer errors/impact• Adviser learn one system – hands on with SME

NOW: Pensions + payroll provider – Low cost for employers – ‘Emergency service’

• Adviser recurring income• Strict SLAs – payroll and pension set up together

Adviser relationship – 2015+

NOW: Pensions Adviser relationship 2015+


Adviser payroll bureaux ‘golden bullet’ – Time is money!

Run payroll and create the worker categorisation file

Log on to the website

Upload data filesto pension scheme

Batch process pensions

Client By client process

= 4 hours*

= 50 hours*

*The above FTE assumes 200 payrolls to be processed within a pay frequency

Adviser Payroll Bureaux ‘golden bullet’


Payroll bureau ‘golden bullet’ – benefits

Default solution

EmployerBureaux(50 employers)

Adviser

Access to consultation

No hassleLowest cost AE

solution

1 providerBatch processTime saving

50 new clients50 consultations

50 x £500* Provider efficiency

*Illustrative purposes only

Payroll bureaux ‘golden bullet’ – benefits


Your choices for 2015+

• Go for secondary market? – Full research, bespoke?

• Develop partnerships with the “new” providers– As suits your model and what you are comfortable with

• Master trusts• Auto enrolment managed service providers


• Do NOT– Get in the way!– Destroy value (for client, provider or you)– Carry out work you don’t like/aren’t competent in

!Your choices for 2015+


Any questions?nowpensions.com0 333 33 22 025

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 125511643.

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.

the provider adviser relationship

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