LV= has achieved 95% take up of its pension schemes post auto-enrolment.
Speaking in a session titled How pension reform will change workplace pension schemes at Employee Benefits Live 2014, Jamie Barnes, head of sales, retirement solutions at LV=, explained that employers have a key role to play in helping staff to retire with an adequate retirement income.
“If people don’t understand their pension provider and plan, trust will not be built between them and little contribution from staff will occur,” he said. “Let staff know now what options are available to them. It’s about simple tools, no surprises and carrying employees through the process.”
Post auto-enrolment, LV- has achieved 95% take up of its workplace pension plan, which currently has approximately 3,500 members.
“Research is a key focus for us, so that we can listen to what members are saying, and measure effectiveness, carry out better communication and measure effectiveness again.” said Barnes.
“If you think it’s expensive to promote your pension scheme now, what until the majority of your employees can’t afford to retire.”
More than 95% of LV employees are satisfied with their pension scheme, but 41% wanted to be provided with more information regarding it.
“Simple strategies that are easy to communicate to staff work best,” said Barnes.
Speaking in the same session, Ian Digby, industry liaison manager at The Pensions Regulator, said that auto-enrolment has driven employers to improve the way they communicate pensions to staff.
To achieve this, employers need to consider innovative and captivating forms of communication to staff.He explained that communicating with employees is one of the biggest issues employers face and emphasised that they must illustrate that pensions “are not just for Christmas, but an all-year-round benefit”.
Employers also need to follow steps such as providing a point of contact regarding pensions, consider which staff members to enrol, select the most suitable pension plan, auto-enrol staff and maintain records, added Digby.
Contracted and freelance workers must also be considered when employers arrange and manage staff pension policies.
“It’s not just people on the payroll employers need to consider,” said Digby. “For instance, not all freelancers are necessarily self-employed.”