Getting pensions sorted for your employees can seem a daunting task for small business owners. But help is at hand, and there are some basic rules you should stick to when thinking about what it is your company needs from a workplace pension.
Around a million and a half small employers have to work out whether they need to put their staff into a workplace pension between now and 2018, and it’s a big challenge for a group of people who probably haven’t really had to think about pensions (and certainly how to set one up before). Lots of small employers are choosing master trusts or multi-employer schemes due to their relatively low cost and strong governance, but finding the right one is important even if you choose to follow this route. A business adviser could probably help you here if you get stuck.
Workplace pensions are a long term game so you’ll need to be sure that the pension scheme you choose has the right experience to manage your funds and those of your employees, and the best possible chance of being sustainable over time. It’s also important to note that not all providers will accept smaller employers, so you might need to shop around. A trusted business adviser could probably help you here too. As long as the scheme you choose is well run by a provider with strong financial foundations, you’ll be doing your best to try to protect your employees’ long term.
As we’ve already said, workplace pensions are a long term game and small employers may need support on an ongoing basis. You’ll need to check that your pension provider is available when you need them and how you need them – online and over the telephone. And you’ll need to make sure that they’ve thought about what you need to make your workplace pension a success, be that simplified procedures or just a friendly voice at the end of the phone. Again, ask a trusted business adviser if you need pointing in the right direction.