Prudential has teamed up with the National Employment Savings Trust (Nest) and Danish low cost pension scheme provider NOW: Pensions to allow employers to run pension schemes from all three providers in parallel.
Nest and NOW: Pensions would aim to serve those employees who would not be as profitable if put into the Prudential pension scheme.
The Pru’s move follows fellow workplace pension provider Aegon which paired up with Nest in March to provide a similar dual-schemed solution.
Tim Jones (pictured), chief executive of Nest, said many large employers were getting to grips with auto-enrolment, which began at the start of October, and wanted to use different schemes for different groups of staff.
‘Nest is here to help make auto-enrolment easier for those employers and to provide a great value pension scheme for their workers,’ he said. ‘We are very pleased to be working alongside Prudential and other providers and are proud of the role Nest will play in helping millions more people save for retirement.’
David Caw, head of client management at Prudential, said that auto-enrolment brought a number of challenges for employers as they looked to provide pensions in a cost-effective manner.
‘While we are providing Prudential-only solutions for many clients, we also expect that dual provider arrangements will be a feature of the auto-enrolment landscape,’ he said. ‘As we seek out the best fit auto-enrolment solutions for clients ahead of their staging dates, working with Nest and NOW: Pensions offers them a choice of propositions.’