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NOW Pensions implements auto-enrolment charge

NOW Pensions implements auto-enrolment charge

NOW Pensions will charge employers up to £40 per month to sign up for its auto-enrolment scheme from January 2016.

The charge will not be applied to firms already signed up with NOW Pensions, even if their staging date is after January 2016.

Currently the company does not charge the employer to set up a scheme. Employees in the scheme pay a 0.3% annual management charge and a £1.50 monthly administration fee, which is reduced to 30p for low earners.

The company said the exact charging structure for employers would be determined after it finished consulting with employers on what they wanted from the auto-enrolment scheme.

Earlier this month NOW Pensions said it hoped to hire 250 new customer service staff in its office in Nottingham to help new auto-enrolment clients.

Morten Nilsson (pictured), chief executive of NOW Pensions said the charge would be introduced to fund guidance for smaller firms which reached their staging date.

Certain companies with fewer than 30 employees began to stage in June.

‘We want to offer all firms, regardless of their size, the help they need but to do this we will need to charge for our services,’ Nilsson said.

‘Unlike the companies that have gone before them, most small businesses do not have any in-house pensions expertise, they are also less likely to have the benefit of an adviser. As a result, smaller companies will undoubtedly need more guidance.’

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