Thomas Miller, a boutique insurance business that manages other insurers, runs a defined contribution (DC) scheme with 340 active and 185 deferred members.
Grant Lore, group pensions director, says: “A decision has been taken in principle to use the existing DC scheme to meet auto-enrolment requirements. In fact, the scheme has a wide eligibility condition, so it is unlikely this will mean the scheme is offered to many, if any, individuals who are not already eligible to join.”
Take-up is currently around 90% among an employee base that includes lawyers, accountants and support staff.
“The company is committed to a balanced remuneration strategy and therefore is factoring into budgets the additional potential costs from auto-enrolment, assuming those who have not joined do not opt out once auto-enrolled,” says Lore. “In the context of overall costs, this is not high given the existing take-up rate. It will also preserve a consistent approach to company pension provision.”
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