Pension advice - National Employer Savings Trust
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Pension advice - National Employer Savings Trust Presentation Transcript

  • 1. clear | concise | advice
  • 2. The company
    • Bright Thinking was created to provide financial planning advice to:
    • Private individuals
    • Companies
    • We offer a wide range of specialist services that include advice on:
    • Personal and corporate investment
    • Pension planning
    • Employee benefits
    • Whole of market mortgage advice
    • Protection advice
  • 3. Our approach
    • The success of Bright Thinking is built on – clear, concise, advice.
    • Advice that is:
    • Of the highest quality
    • Completely impartial
    • Tailored to our client’s specific requirements
    • Focuses over the long term
    • We can provide:
    • A full financial planning review or a review of several areas of need
    • Advice that is restricted to a single area of need, such as a pension review
    • Ongoing advice, reviews and management of arrangements
  • 4. Service proposition
    • There are four parts to our service proposition:
    • The ‘Initial Consultation’
    • The ‘Review and Recommendation’
    • The ‘Implementation of Recommendations’
    • The ‘Ongoing Review Service’
    • Further details of what’s involved in the above processes can be found in our
    • client service proposition document, along with details of our fees.
  • 5. Auto enrolment & NEST
    • What does this mean?
    • Auto-enrolment and NEST (National Employment Savings Trust) will start from 1 st Oct 2012
    • Large employers with 50,000 employees or more will be eligible to start from Jul 2012
    • The start date or ‘staging date’ as it’s being referred to depends on how many people are in your PAYE scheme
  • 6. All employers will have to automatically enrol staff who are:
    • Aged 22 to state pension age
    • Earning more than the income tax threshold (£7,475 in 2011/12 tax year).
    • Not currently in a qualifying pension scheme
    • Contribute at least 3% of employee’s salary
      • Into:
    • Either NEST, or
    • An alternative qualifying pension scheme (i.e. a personal pension scheme or an occupational scheme)
  • 7. What does it mean for employers?
    • In summary, each employer will be required to:
    • Select a qualifying pension scheme for automatic enrolment
    • Provide prescribed information on the scheme to their employees
    • Identify and automatically enrol eligible employees into the scheme
    • Accept ‘opt-in’ requests from other employees to join the scheme
    • Calculate and pay at least the minimum employer and employee contributions to the scheme
    • Facilitate ‘opt-out’ requests from employees who decide they do not wish to remain members of the scheme
    • Refund employee contributions for those who opt out
    • Undertake a re-enrolment exercise every 3 years for those who have opted-out, or who have subsequently left the scheme
    • Provide prescribed information to the pension scheme and to the Pensions Regulator
    • Retain records to evidence compliance with the rule
  • 8. Our concerns
    • Employers will be fined if their scheme is not set up in time for the ‘staging' date
    • The cost and time associated to the employer to set up and run the NEST scheme
    • There is a maximum contribution of £3,600 per annum
    • There is currently only a small range of funds available
    • The choice of funds is heavily influenced by the risk-averse attitude
    • It’s the employer’s responsibility to select the fund choice for the employee – if it doesn't then they will be automatically placed into the default fund
    • Transfers to and from NEST are not allowed
    • We believe this to be a perfect example of low charges = no advice!!
  • 9. How can we help?
    • We can confirm your ‘staging date’ and advise you when your scheme needs to be in place by
    • Ensure that employers can meet their disclosure requirements under the auto-enrolment legislation
    • As IFA’s we can compare the NEST scheme to alternative options i.e. a personal pension scheme
    • Look at a salary sacrifice model where savings can be made on NI contributions
    • We will be able to provide you with a wider choice of investment funds that cover a range of risk profiles, giving you a choice of investment strategies and lifestyle options
    • If we set up and administer the scheme we can take the majority of the work load away from the employer
    • You will have access to a dedicated pension specialist who you and your employees can liaise with
    • As part of our on-going review service we will review the performance of your scheme annually
  • 10. Contact us
    • Oxfordshire office
    • 1 st Floor
    • 36 South Bar
    • Banbury
    • Oxon
    • OX16 9AE
    • South West office
    • The Old Barn
    • Daccombe
    • Newton Abbot
    • Devon
    • TQ12 4ST
    • Call our free phone number 0808 1680611 and speak to one of our experts or email us at
    • [email_address]