Three years on from the launch of automatic enrolment, the largest firms are now beginning the process of 're-enrolling' their workforce. Royal London believe that this would be a natural point for firms to consider whether their original automatic enrolment provider is offering the best value and the best service for both scheme members and employers.
Royal London has long championed the creation of an additional, light-touch responsibility for employers, after taking appropriate advice, to review their workplace scheme's quality and suitability for their workforce.
In his letter, Phil Loney writes:
"As the Office of Fair Trading found, employers often lack the capability or the incentive to assess value for money. Even if employers make a sound initial choice of provider there is no guarantee that the scheme will continue to offer competitive investment performance or high standards of member service into the future. It is vital that there is a vibrant pensions market where pension providers are held to account for both the price and quality of their products.
"It would not be in the interests of scheme members if the selection of an automatic enrolment provider was seen as a 'once and done' activity by employers. As a mutual pension provider our goal is to ensure that scheme members get the best value pensions available on an ongoing basis. A thriving secondary market where incumbent providers face a real competitive challenge would help to deliver that goal."
