|
Hi Trevor
My understanding is this..........
NOW Pensions.....no cost to me, no cost to employer, all opt in/opt out communications done for me by NOW - basic pension with many limitations, but employer is compliant.
Peoples Pension.......no cost to me, not sure about cost to employer, don't think it's very much, not sure about the communication letters, I think I may have to do these - again, basic pension with some limitations, but employer is compliant.
ICB AVIVA pension through LEBC - £300 set up cost per client (inc VAT, cost to me, so cost higher to client) £5 to £10 per month cost to me, to pass on to employer, better pension with many more options, but still limited in some of it's options Vs much more expensive pensions from FSA people. Contribution by employer from 2017 onwards is 4%, versus possible 3% with NOW and People Pension systems. 25% difference can be a big difference to some very small employers. Aviva pension much more 'known' and may well be a very viable option for any employers wanting to do a little more for their employees rather than just being compliant. Opt in / out letters still have to be done by you I think.
I plan on telling my clients that this option is available to them as well as either Peoples or Now Pension that I choose to go with. I think the 3 options are adequate to offer.........
1 - Obtain FSA advice - I'm not involved in any cost here, just tell me what company I need to report the payroll figures to.. I will charge an extra £1 per payslip to administer.
2 - The ICB option - £350 cost set up, £10 per month cost - or more to take in my costs, but best of both worlds with minimal costs but good pension
3 - NOW or Peoples Pension - no or little cost to employer (except contributions, obviously), no cost to me, allows client to be compliant, pension basic but adequate.
Is this how everyone else views it????
|
