JLT Research shows Employer understanding of

Auto-enrolment still too low

  

JLT Research shows Employer understanding of  Auto-enrolment still too low with 1/3 unsure on what scheme they would use up to comply with their duties

 

24th November 2011, London:  The Government has a long way to go to get the message across according to the 5^th UK Pension Reforms Auto-enrolment and NEST Employer Research report produced by JLT Benefit Solutions Limited (JLT).

Duncan Howorth, CEO, JLT, says "With less than a year to go until the reforms start to take effect, it is very worrying that levels of understanding amongst employers are low for both NEST and auto-enrolment, with only 21% of respondents 'strongly' agreeing that they understand auto-enrolment and only a surprising 11% strongly agreeing that they understand NEST".

19% of employers are still not sure how they will comply with auto-enrolment and, if they were to set up a new scheme to comply, 1/3 do not know what sort of scheme it would be. Interestingly, there is little appetite for the new generation of Master Trust Schemes being set up as private sector alternatives to NEST and very few employers see NEST as a 'panacea' into which they will auto-enrol all eligible workers.

Duncan Howorth continues, "Depth of real understanding and planning amongst employers is still incredibly low despite the fact that 50% believe auto-enrolment will be beneficial for employees. There are perhaps two main reasons for this; the belief that a high number of employees will opt out (29%) and a perception that the reforms are still some way off.

However, the reforms are almost upon us and employers 'staging' in 2013 should now be planning for them. Also, opt-out rates will depend on numerous factors, such as age and demographics and employers should not read too much in to headline figures ".

The results show that 40% of respondents agree that the additional contributions and administrative resource are causes for concern. Also, one third of respondents do not believe that the Government or the Pensions Regulator are providing enough support or information for employers.

JLT has always been concerned about employer engagement in the process and Duncan Howorth concludes by saying "We hope that, despite the difficult financial positions that both the Government and many organisations may be finding themselves in, they can find the necessary resources to promote the workplace pensions properly; as we have said before the success of auto-enrolment is dependent upon employer engagement".

--ENDS--

 

Enquiries:

JLT Group Corporate Communications                   JLT Benefit Solutions

Isabella Young                                          Simon Hazeldine

Email                                                    Email

+44 (0)20 7558 3387                                   +44 (0)1727 775 102

 

Editor's Notes:

Info about the research:

Fieldwork for this report was conducted online between 24th June and 5th July 2011. All research was conducted with members of the YouGov panel.

Respondents fulfilled one or more of the following criteria relating to workplace responsibility:

• in a senior management position (senior manager/ director or above), and/or
• have overall HR responsibility, and/or
• have HR responsibilities as their main role and middle management or above, and/or
• have company pension responsibilities.

Respondents are referred to as ‘employers' throughout this report, owing to their level of responsibility within their organisation.
Base: 504 Employers. Fieldwork: (June/July 2011)

Copies of the research are available from Simon Hazeldine, JLT Benenfit Solutions. Contact Simon Hazeldine (01727 775102).

About JLT Benefit Solutions Limited

JLT Benefit Solutions Limited (JLT) is one of the UK's leading employee benefit providers offering a wide range of benefit and pension services, including administration, actuarial and pension consultancy, investment, wealth management, Self Invested Personal Pensions (SIPPs), Small Self Administered Schemes (SSASs) flexible benefits, healthcare, benefit communication and financial education.

Authorised and regulated by the Financial Services Authority, JLT employs over 1,300 professionals in the UK with revenues of some £132m in 2010. The acquisitions of HSBC Actuaries and Consultants Limited and iimia Wealth Management have supported JLT's continued expansion to become one of the four largest employee benefits consultancies in the UK. JLT was awarded Pension Scheme Administrator of the Year at the 2010 European Pensions Awards and won the Engaged Investor's Most Innovative Pension Consultancy Award in July 2011

Other pensions and employee benefits companies within the JLT group of companies include: Profund Solutions Limited, Independent Trustee Services Limited and JLT Pension Capital Strategies Limited.

JLT Benefit Solutions Ltd is part of Jardine Lloyd Thompson Group plc.

http://www.jltgroup.com/employee-benefits/

Jardine Lloyd Thompson Group plc

Jardine Lloyd Thompson Group plc (JLT) is an international group of risk specialists and employee benefits consultants and one of the largest companies of its type in the world. JLT offers a distinctive choice to clients and partners through our combination of independence, scale and specialism.

The Jardine Lloyd Thompson group is quoted on the London Stock Exchange and employs over 6500 people worldwide and through the JLT International Network provides services in more than 130 countries.

http://www.jltgroup.com/