Technical Guide: Overview For people, not profit

Transcription

1 The People s Pension Technical Guide: Overview For people, not profit

2 Title 2 The People s Pension Technical Guide: Overview

3 CONTENTS Summary 4 The People s Pension 5 Growth 5 A multi-employer scheme 6 One pot, for life 6 Retirement 6 Automatic Enrolment 7 Charging structure 8 Appendix I Awards 9 Appendix II Sample customers 10 The People s Pension Technical Guide: Overview 3

4 Summary 1. The People s Pension has been designed to offer members the ability to have a single scheme for life. It is already the automatic enrolment solution of choice for many employers, large and small. 2. The People s Pension is provided by B&CE. B&CE is a not-for-profit company that has been running pension schemes for over 30 years. 3. B&CE s unique expertise, together with a purpose built pension proposition makes us able to provide a cost effective, hassle free automatic enrolment solution. 4. The People s Pension has a transparent 0.5% Annual Management Charge. Transfers in and out of the Scheme are handled at no additional charge. 5. The People s Pension can be used as an employer s only scheme, or in conjunction with other schemes. 4 The People s Pension Technical Guide: Overview

5 The People s Pension Multi-employer mastertrust Managed & administered in the UK Contributions gross or net of tax Enrolled over 300,000 members in The People s Pension is a defined contribution multi-employer occupational pension scheme (with non-associated employers) established under Pensions Act 2004 and is regulated by The Pensions Regulator. Each participating employer has their own section of The People s Pension, but members can move between them according to their career progression. 2. The People s Pension has been designed to achieve the principles of a super trust as outlined by the NAPF in their response to the Government s consultation, Enabling Good Member Outcomes in Work Based Pension Provision. These principles require a super trust to have certain key features: to be a not-for-profit arrangement, to use its scale to deliver low costs, to be run in the interests of its members, to have an independent Trustee ensuring good governance for its members. 3. In an automatic enrolment environment The People s Pension can be either a qualifying scheme or a non-qualifying scheme. It can also operate outside of automatic enrolment if an employer wants a scheme in place ahead of their staging date. Growth 4. It is expected that membership of The People s Pension will ultimately cover the majority of our existing construction clients, encompassing a workforce of over a million individuals. New customers from sectors such as retail, hospitality, healthcare and transport have been drawn by our experience. A small sample of our customers is shown in Appendix II Sample customers. 5. Over 600,000 workers from more than 250 employers will have access to The People s Pension by the end of Our customer and administration services are handled in-house at our head office in Crawley. Investment management is performed by Legal & General Investment Management and HSBC Global Asset Management. None of our business offering is provided directly or indirectly from outside of the UK. The People s Pension Technical Guide: Overview 5

6 A multi-employer scheme Each employer has their own section of the scheme Employers can create multiple member categories Members have a single pot for life Annuity service available Death benefits are normally free from Inheritance Tax Member online services available 1. The People s Pension has been designed to provide each participating employer, and its subsidiaries, with its own customisable section of the Scheme. 2. Within their section of the Scheme employers are able to define different categories of workers with elements such as pensionable pay, eligibility and contribution rates. 3. Each section of the Scheme is fully independent of the others, meaning that no liabilities can affect a nonassociated employer. 4. Adherence to the Scheme is by Deed of Participation or Agreement. The Deed of Participation is a paper document which requires a signature from Directors of a participating employer. The Agreement is a simplified online process which requires a declaration to be made by an authorised individual in order to bind the employer to the Scheme. The Agreement is our preferred method of adherence. 5. Should an employer decide that they no longer wish to participate in The People s Pension they must only provide one month s notice to exit the Scheme. A longer period can be supported if this is more appropriate. There are no charges or penalties for employers leaving The People s Pension. One pot, for life 6. The People s Pension has been designed for today s transient workforces and to handle frequent changes of employment. 7. A member will only ever have one Personal Account in the Scheme. When a member leaves active service, or membership is created through a transfer in, their Personal Account is moved to a general deferred members section of The People s Pension. Their Personal Account is then re-activated if they re-join through another employer. 8. Where the Scheme is being used prior to an employer s staging date we do not require prospective members to complete any documentation to achieve membership. 9. If a member moves to an employer that does not operate The People s Pension, or becomes self-employed, they may continue to make contributions. 10. Should a member wish to transfer their accumulated funds to or from another provider we will not apply any penalties or fees for transferring. Retirement 11. An agreement is in place with Partnership Assurance which ensures that members with even the smallest of funds can access enhanced annuity rates. 12. As our membership profile develops, in conjunction with the Trustee, we will continue to ensure that the retirement income options offered by The People s Pension meet the needs of our members. 6 The People s Pension Technical Guide: Overview

7 Automatic Enrolment Automatic enrolment employer assistance service Compatible with all payroll systems Enrolment communications issued at no extra charge B&CE hosts the whole opt-out process Postponement and contractual enrolment supported 1. B&CE has developed a free web-based employer assistance service, available to all customers that works with all modern payroll systems. 2. Employers can upload our required contribution and membership data in a user defined electronic format. Our systems have been designed to be flexible enough to cope with the various ways in which data are presented on payroll systems. 3. If an employer s own payroll software is unable to perform the assessment of its workforce then functions within our file upload process can perform the assessment using a two pass methodology. 4. Our systems are designed to provide straight-through processing (STP) for contributions with all investment instructions sent to our fund managers without the need for human intervention. 5. Employer Online Services enables employers to access and receive full histories of all contributions made, and any opt-outs in perpetuity. 6. Our file upload process has been externally audited for compliance with automatic enrolment regulations. 7. Our database is already developed and designed for high volume traffic. We have designed the system to be able to process up to 1 million active individuals, expandable to 2 million active individuals if the need arises. 8. Where an individual joins the Scheme, whether automatically, contractually or voluntarily, we will issue the appropriate enrolment information. The enrolment information will be sent by where an address is provided, or in paper form to a member s home address. This is done at no cost to the employer. 9. The People s Pension hosts the whole opt-out process. Employers need not get involved in handling their employees requests to opt out. Members can opt out by a 24 hour automated phone line, online or by post. 10. During the opt-out period The People s Pension will hold any contributions received for members in cash. The People s Pension Technical Guide: Overview 7

8 Charging structure 0.5% Annual Management Charge (AMC) No contribution or monthly charges No employer charges 1. The only charge under The People s Pension is a transparent AMC of 0.5% levied on members funds. 2. Our AMC includes asset management and administration charges along with costs of any support provided to the employer. The charge applies to both active and non-active members, regardless of fund selection or size. Our AMC is equal to the Total Expense Ratio (TER). 3. As a not-for-profit organisation we are determined that the costs borne by members should only reflect the costs of running the Scheme. We are committed to reducing the AMC and the first such review is likely to be at the end of the phasing of automatic enrolment contributions. However, a review will be brought forward if The People s Pension exceeds current membership and contribution projections 8 The People s Pension Technical Guide: Overview

9 Appendix I Awards Excellence in Institutional Pensions WINNER 2012! DC Mastertrust/Bundled Services WINNER 2013! Auto-Enrolment Provider of the Year WINNER 2013! Investors in People AWARD 2013! PQM Ready AWARD 2013! League of Excellence WINNER 2013! The People s Pension Technical Guide: Overview 9

10 Appendix II Sample customers TRADE ASSOCIATION MEMBER TRADE ASSOCIATION ASSOCIATE MEMBER TRADE ASSOCIATION REPRESENTING THE INDUSTRY British Furniture Manufacturers British Furniture Manufacturers British Furniture Manufacturers 10 The People s Pension Technical Guide: Overview

11 The People s Pension Technical Guide: Overview 11

12 For people, not profit B&CE is a not-for-profit organisation, which operates for the benefit of its members and their dependants. Established in 1942 and founded in construction, B&CE s current offerings include a workplace pension, employee accident cover, employee life cover and employee healthcare. Today it manages assets of 1.9 billion, with 2 million members and provides financial benefits to over 590,000 active individuals on behalf of over 6,700 corporate accounts. (Information correct as of 28 February 2014) For over 30 years, B&CE has been providing workplace pensions to employers with transient, low to moderate earning workforces, both large and small. B&CE has been operating a form of automatic enrolment for over ten years through its stakeholder product. In November 2011 B&CE announced details of The People s Pension, as an additional product to assist employers in complying with their automatic enrolment duties. The People s Pension, a Master Trust, is a multi-employer scheme with independent trustees. It is a hassle-free, flexible and portable workplace pension designed for people, not profit and is suitable for any organisation, large or small, in any sector. B&CE, as the provider of The People s Pension, was awarded Auto-Enrolment Provider of the Year at the UK Pensions Awards 2013 and best DC Master Trust at the Pension and Investment Provider Awards The People s Pension is the choice for any organisation, large or small, in any sector. It s for people, not profit. To find out more, or to register: thepeoplespension@bandce.co.uk Or call us on: Existing clients: Advisers: New enquiries: This information in this document is correct as at December 2013 and may be subject to change. B & C E Financial Services Limited Manor Royal, Crawley, West Sussex, RH10 9QP. Registered in England No To help us improve our service, we may record your call. B&CE Financial Services Limited is Authorised and regulated by the Financial Conduct Authority. Ref: The Company is a distributor of, and an administrator for, The People s Pension and the Employee Life Cover Scheme which are occupational pension schemes to which different law and regulation applies. Further details, can be found on our website d/0214