As previously recorded on this blog, The Better Workplace Pensions consultation response has raised an entirely new set of concerns for employers regarding their Auto-Enrolment scheme selection and adviser remuneration. In a worst case scenario, employers will need to renegotiate their scheme terms with a provider, or possibly even look to move their scheme to comply with the new requirements.
With this in mind, both employers and the wider pensions industry, has been watching closely to see what blanket-terms scheme providers may offer as a response to the above challenges.
Which takes us to AVIVA’s announcement yesterday. The attached link provides some of the details which our followers might find of interest:
https://www.corporate-adviser.com/2010412.article?cmpid=canews_293922
On the face of it, this appears to be a strong package of blanket proposals which will be welcomed, and assist, a great many employers.
Yet there may be some vital detail that the main announcement overlooks or avoids. One sentence that grabbed my attention included:
“it will introduce an employer charge in a small number of schemes where the active charge on AMD is above 0.75 per cent”
A little vague, and this may be concerning for many employers. If in doubt, please check with your usual Jelf consultant.
I will comment further on insurer responses as they become known.
Best regards
Steve
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