UK - Stakeholder take up could rise by 30% if employers were allowed to promote schemes to their staff, B&CE Benefit Schemes claims.
And it believes the recommendations – put forward by the Confederation of British Industries’ Securing our Future report – should be actively encouraged.
B&CE deputy chief executive John Jory (pictured) said: “The key to the success of any occupational stakeholder scheme is the role of the employer, and they should be permitted to promote their stakeholder schemes to staff.
“Such a move would allow employers to take on a more active role, should they want to, without unwittingly being caught out in mis-selling. All they need to say is: ‘This is the scheme we’ve chosen, this is how it works, if you need any more information, contact the provider’.”
Jory added that B&CE, which runs the industrywide EasyBuild stakeholder scheme for construction workers, would go one step further and recommend that those employers also be provided with the necessary tools, such as literature and presentation aids, to help promote their scheme.
He added: “Our experience has shown that when staff have attended a presentation about their employer’s pension scheme the number of individuals contributing to the scheme has increased by 30%.”
Jory singled out recommendations to introduce automatic enrolment into company schemes for new employers as another positive move forward. The move was also endorsed by the department for work and pensions in its Informed Choice announcement.
Jory added: “We’ve found that our automatic enrolment initiative has dramatically boosted the membership of the B&CE EasyBuild stakeholder scheme by 45% since February 2003.
“It’s much easier for people to do nothing rather than something, and most are happy with their contributions being taken directly out of their pay.”
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