More than 80% of corporate advisers said that the cost and administration of auto-enrolment are the top worries for employers preparing for the pension reforms, according to research by Aviva.
Its Corporate adviser survey also found:
- 67% of respondents said employers are concerned by the cost of meeting the long-term compliance requirements.
- 38% of respondents said employers are worried about ensuring they have an efficient way of integrating auto-enrolment with their payroll functions to gather accurate contribution, opt-out and employee profile data.
- 33% of respondents said employers are concerned about putting a compliant pension scheme in place in time for their staging date.
The research also looked at where employers are with their preparations for auto-enrolment. Just under a third (29%) of the advisers surveyed said that their employer clients are assessing their employee base to understand the contribution/pension implications, linking this in with payroll. In addition, 28% said employers are modelling how auto-enrolment will affect their businesses, for example in terms of administration, IT infrastructure and costs, and 26% of advisers’ employer clients are implementing a new or updated pension scheme for eligible employees.
However, less than a fifth (19%) of the advisers surveyed said their employer clients are actively considering the options for the on-going management of compliance monitoring, such as tracking employee contributions, opt-outs and eligibility.
Graham Boffey, managing director of corporate benefits at Aviva, said: “We’re recommending that employers put aside at least 18 months for their preparations, which includes reviewing schemes in detail to ensure they are modern, low-cost and fit for purpose.”