Smart Pension Auto Enrolment

Transcription

1 Adviser s Booklet Smart Pension Auto Enrolment ACT NOW FREE FOR ADVISERS, AGENTS & EMPLOYERS. GREAT VALUE FOR EMPLOYEES.

2 Contents 1. Master Trust Structure 2. Payroll Software Compatibility 3. Value for Money - Potential Costs 4. Value for Money - Competitors Charges 5. Help with Your Client s AE Obligations 6. Adviser Invitations 7. More Useful Tools 8. Support & Guidance 9. Investment Options 10. Who is the Pension Provider? 11. Your Client s Assessment & Communications 12. Your Client s Assessment & Communications via Smart Pension 13. Member Portal 14. Transfer In & Out 15. Auto Enrolment Made Easy Who are we? We offer: 1 The fastest way to set up and manage your client s workplace pension on their behalf. 2 An outstanding and highly experienced investment team which delivers Master Trust. 3 The world s largest independent fund administrator, Apex Fund Services, to securely administer and manage your workplace pension. 4 Professional and experienced trustees (the majority of whom are independent) in charge of the Master Trust, to ensure that it serves 5...all available at zero cost to you & your clients.

3 1. Master Trust Structure Smart Pension s master trust: AutoEnrolment.co.uk Master Trust The AutoEnrolment.co.uk Master Trust is the regulated legal entity into which pension contributions are made. The Master Trust is: Regulated by The Pensions Regulator Managed by experienced independent trustees Trustees who fully ring-fence and oversee the scheme to ensure employee s funds are fully protected at all times. Scheme references: Our Pension Scheme Registration Number is Our HMRC Pension Scheme Tax Reference is RM. Key quality marks: MAF 02/07 Master Trust Assurance Framework

4 2. Payroll Software Compatibility 1 Using Smart Pension for assessment & communication 3.3 Mem M that is compatible with Smart Pension. 2 Single-click submission Direct integration using Smart Pension API (application programming interface). 3 Single-click submission via pensionsync We have partnered with pensionsync to automate the transfer of pension data from payroll straight into the Smart Pension platform. Read more about our partnership with pensionsync here: Sign S Lega L SmaS 4 Pre-assessed contributions If your client s payroll software provider carries out their assessment & either in PAPDIS format or a bespoke Smart Pension format if desired. U U 6th

5 Value Value forfor Money Money Potential Potential Costs Costs 3. Value for Money Potential Costs er mber charges charges Member charges NEST: NEST: 0.3% 0.3% annual annual member member charge charge + 1.8% + 1.8% contribution contribution charge charge Creative 2.00 per + AMC 0.4% member Creative Pension: 2.00 per + AMC 0.4% per member Pension: NEST: 0.3% annual member charge +per 1.8% contribution charge Enrolex: per Enrolex: per Creative Pension: 2.00 per + AMC 0.4% per member Enrolex: per p feesfees n& upadmin & admin Sign up & admin fees The People s Pension: 500 sign-up fee fee ( 300 for advised) The People s Pension: 500 sign-up ( 300 for advised) NOW Pensions: 36 ( 432 admin NOW Pensions: 36 perper ( 432 p.a.)p.a.) admin fee The People s Pension: 500 sign-up feefee ( 300 for advised) Standard Life: 100 per admin fee Standard Life: 100 per admin fee NOW Pensions: 36 per ( 432 p.a.) admin fee Trust Pensions: employee annum Trust Pensions: perper employee annum Standard Life: 100 per perper admin fee Trust Pensions: 12 per employee per annum schemes acy schemes Legacy schemes Legacy schemes are are turning employers away if they don t reach Legacy schemes turning employers away if they don t reach minimum contribution levels. minimum levels.are turning employers away if they don t reach contribution Legacy schemes minimum contribution levels. Pension art Pension Smart Pension Guaranteed acceptance Guaranteed acceptance for advisers andand employers for advisers employers Guaranteed acceptance Annual member charge is 0.75%. Annual member charge is 0.75%. for advisers and employers No No transaction charges. No hidden fees. transaction charges. No hidden fees. Annual member charge is 0.75%. No transaction charges. No hidden fees. Employee Employee Employer Employer Total Total contribution contribution Employee contribution contribution Employer contributions contributions Total Timing contribution contribution contributions Up o April to April 5th th % 1.0% 1.0% 1.0% 2.0% 2.0% Timing Timing Up to April 5th 2018 Up o April to April 5th th % 3.0% Up to April 5th 2019 April of April onwards onwards 5.0% 5.0% 6th of April 2019 onwards 1.0% 3.0% 5.0% 2.0% 2.0% 3.0% 3.0% 1.0% 2.0% 3.0% 5.0% 5.0% 8.0% 8.0% 2.0% 5.0% 8.0%

6 4. Value for Money Competitors Charges Great value A selection of the main workplace pension providers: Year One Only Y 1. Company Fees 2. Employee Fees NEST NOW: Pensions Creativ eative Auto Enrolment The People's Pension Set up fee V VA AT Ongoing fee 432 p.a. + VA VAT* 240 p.a. + VA VAT Total charge V VA AT* V VA AT V VA AT Average UK Salary 1 27,200 27,200 27,200 27,200 27,200 Qualifying earnings 21,376 21,376 21,376 21,376 21,376 Contributions ((Y1) Average AUM (Y1) AMC3 0.75% 0.30% 0.30% 0.40% 0.50% Admin fee rate 1.80% 1.50 / 2.00 / Total charge Charge as a percentage of average AUM (Y1)2 0.75% 3.90% 8.71% 11.62% 0.50% 518% 1,158% 1,544% 66% Percentage of Smart Pension fees * NOW: Pensions charges employers up to 36 per + VAT for a workplace pension. Creative Auto Enrolment charges employers up to VAT to set up a workplace pension. The People s Pension charges employers up to VAT for setting up a workplace pension. 1 Source: Annual Survey of Hours and Earnings - ONS AUM = Assets under management. 3 AMC = Annual management charge. Not only are we phenomenally good value for employers (free!) and employees, but we are also chip investment options. Why choose anyone else?

7 5. Help with Your Clients AE Obligations FREE Adviser Platform Designed for Accountants, Bookkeepers, Payroll, HR, Financial Advisers and other advisers to manage a portfolio of clients through their full auto enrolment administration obligations. Using our Adviser Dashboard, you can: Sign-up solution: Sign up your clients and then leave them to manage the administration themselves. Or invite a third party Adviser to manage the administration. End-to-end solution: Manage the full auto enrolment administration obligations from sign up through to ongoing assessment & communications for your clients.

8 6. What are Adviser Invitations? You can invite another adviser to manage this company with you. You may wish to do this if you are an IFA or Accountant responsible for the scheme set up but want someone else to manage the ongoing payroll, for example. Privacy IMPORTANT - You should only share account access with someone you trust. Data protection is your responsibility under our Terms & Conditions. Advisers you add for this company will not have access to other companies in your account. Sending invitations to someone with an existing Smart Pension adviser account This list displays any existing invitations you have sent and their current status. If you have not sent an invitation you can do so here by clicking the create invitation button. This will generate a unique one-use URL that the adviser can click to link this company account with their adviser account. Sending invitations to someone without a Smart Pension adviser account If they don t have an adviser account yet they can set one up now by visiting Once they have an account they can click the invitation URL and will then be able to manage your account. Resending invitations or revoking access If you have sent an invitation and it has not been accepted, you can send a new one. You can revoke access to an adviser at any point by signing into the company account and under Adviser access, selecting the revoke button next to the relevant adviser.

9 7. More Useful Tools We provide lots of useful tools to help you and your clients which include: Auto Enrolment Planner Pension Calculator Educational Video and Poster Generators that you can tailor with your own branding to send to your clients. Adviser Marketing Pack with due diligence fact sheets, brochures and a customised letter to clients. Glossary of auto enrolment terminology 8. Support & Guidance Whilst Smart Pension is very online and automated, we do have: A Live Chat support team on our website An Adviser Support telephone line if you need to talk to someone directly on A Knowledge Bank on our website A Help Menu on our Adviser Platform

10 9. Investment Options Smart Growth Fund Smart Growth Fund path through Higher risk to Lower risk funds (see below). The Smart Pension Growth Fund Profile is a highly diversified, low cost investment option, which spreads members capital across multiple asset types and geographic regions. Over 90% is invested in funds which have been selected from Legal & General Investment Management s range of index-tracking funds. Self-selection Members can elect to move away from the Smart Growth Fund path to select specific fund combinations that will suit their circumstances from the fund options available. For members wishing their pension investments to be fully compliant with Islamic Sharia law, we also offer the option to invest in a Sharia fund that tracks the Dow Jones Islamic Titans 100 Index. Fund options 1: Traditional Fund Default Fundrisk2: Balanced Smart Growth - Moderate Smart Growth Fund - Lower risk Default Fund 3: Conservative Default This fund carries a higher risk of fluctuation This fund has been created so that it willfund 4: Defensive This fund carries the lowest risk of loss but to your savings but has the potential for typically suit most of our members. It has also reduced likelihood of a high return, but this HSBC Sharia Fund 5: Optional high growth, though is not guaranteed. the medium level of risk of these funds. it may be suitable if you are concerned Default Smart Growth Fund - HigherFund risk about volatility. 10% 10% 10% 15% 15% 50% 25% 50% 25% 40% 30% 20% UK FTSE 100 Equity Index Fund UK FTSE 100 Equity Index Fund UK FTSE 100 Equity Index Fund World (ex UK) Developed Equity Index Fund World (ex UK) Developed Equity Index Fund World (ex UK) Developed Equity Index Fund All Stocks Index-Linked Gilts Index Fund All Stocks Index-Linked Gilts Index Fund All Stocks Index-Linked Gilts Index Fund North America Equity Index Fund North America Equity Index Fund North America Equity Index Fund You can use the graph above to help you choose what level of risk you want to take. To view the full list of funds, please visit:

11 10. Who is the Pension Provider? Pension Fund Governance Pension fund: AutoEnrolment.co.uk Master Trust The legal entity into which pension contributions are made, securely, by direct debit. The master trust and it s trustees is regulated by The Pensions Regulator. Is fully ring-fenced and overseen by experienced trustees, (the majority of whom are independent), to ensure employees funds are fully protected at all times. Trustees: leads the Smart Pension board of trustees. The trustees ensure pension legislation is followed, act in the strategy for the scheme s assets per the trust deeds, all at the best price possible. The trustees appoint both the master trust s investment manager and its pensions administrator. Pensions administrator: Hymans Robertson Hymans Robertson is an independent provider of actuarial, administration investment, workplace health and wealth, and consultancy services to pension schemes and other clients. With an understanding that financial expertise is balancing performance, risk and cost is key, we are delighted to be leveraging investment advice from them alongside the deep expertise of our trustees. With their support, we are able to gain clarity on complex issues and understand the impact of legislative change which, in turn, helps us to make better informed and timely decisions for the benefit of our pension scheme members.

12 11. Your Client s Assessment & Communications Assessment & communications are an ongoing employer obligation Every payroll period all employees not enrolled into the scheme must be assessed and sent compliant communications (letters) when necessary. It is not a requirement for a pension scheme to provide this service, however some schemes do offer these services. Smart Pension gives you the option to either: - Use the Smart Pension assessment & communication tools. - Or do this using your own payroll software. 12. Your Client s Assessment & Communications via Smart Pension The free Smart Pension assessment service includes: Postponement management A choice of banded or un-banded earnings The creation of employee groups to pay different employer contributions Enabling members to make additional voluntary contributions (AVC) Calculation of contributions Contributions taken by Direct Debit Record keeping Generating compliant communications Sending communications to employees directly by mail And/or delivering letters to the employer for alternative distribution (hard copy or ).

13 13. Member Portal Members can: Monitor and manage their own pension scheme Update their contact details Choose to adjust their additional voluntary contributions (as a % rather than a cash value currently) Opt in/opt out, leave or rejoin the scheme View their contribution history Access the Scheme Booklet Complete an Expression of Wish form Self-select from a range of funds including a Sharia fund This information feeds directly to the employer & adviser dashboard so that all and any adjustments to assessment and calculations can be made at each payroll period conveniently and easily.

14 14. Transfer In & Out We accept transfers in from, and out to, like-for-like qualifying auto-enrolment workplace pension schemes. Transferring in from any other type of scheme would require closer review, and may involve your client needing to get paid advice from a professional FCA regulated investment adviser. Members wishing to transfer out of the scheme can refer to the instructions under the section 4. Individual Transfers Out of the Pension Transfers page which can be accessed online here

15 15. Auto Enrolment Made Easy Fast It takes less than 30 minutes to sign up a company of c.15 employees, assess & communicate with them. Secure Security is very high on our agenda both for our technology platform and our director checks. We think value for money is very important, providing our service to employers and advisers for free.

16 FREE FOR ADVISERS, AGENTS & EMPLOYERS GREAT VALUE FOR EMPLOYEES Guaranteed Acceptance for Advisers for Employers Annual Member Charge is 0.75% NEED MORE HELP? Online Chat Adviser Support on Helpful library of videos online Live platform walk-through demos Brochures and due diligence fact sheets online Visit: OR CALL US NOW ON: Smart Pension Limited, 0 Eastbourne Terrace, London W2 6LG United Kingdom. Registered in England under number other communications or our website should be taken as providing such advice. AutoEnrolment.co.uk Master Trust is regulated by The Pensions Regulator.