The September edition of DC and Auto-enrolment looks at two tier pension schemes and how partnerships are helping businesses deal with auto-enrolment.
Recently we have seen several cases of DC providers collaborating with low cost pension providers such as NEST and The People's Pension to offer two tier pension arrangements.
The rationale behind such decisions seems clear. If certain providers are unable to service lower paid workers then collaborating with those who will can save employers a great deal of stress.
However, reading through the auto-enrolment panel in this supplement (pages 6-10) highlights that such partnerships may not be straightforward.
Hargreaves Lansdown's Lucy Lawrance points to several challenges. For instance, how will the different providers' systems work together? Will they need to be adapted and if so who takes responsibility for that? How much will it cost to do so?
These are important issues that will need to be addressed quickly if these collaborations are to work well. I think we are in for interesting times ahead!
The Work and Pensions Committee (WPC) is launching a probe into the long term viability of the UK’s 6,000 defined benefit (DB) schemes.
The government has published proposals to keep the British Steel Pension Scheme out of the PPF while reducing its liabilities to make Tata Steel UK more attractive to buyers. Stephanie Baxter explores the options.
More than a quarter of savers (28%) have never reviewed their retirement savings, according to figures from Aviva.
Eversheds has been appointed to provide legal advice to the trustee of the P&O Pension Scheme, with effect from May 2016.