The main cost to you as the employer will be the initial cost of the compliance software and any additional support as outlined in the following section. Outsourced payroll providers may charge additional fees for producing pension data. If this is the case, depending on the package being offered, you may want to negotiate or begin looking for alternative providers. The cost of the
Additional support for employers
If you would like additional tailored support to help you introduce your pension solution, the RIBA approved financial adviser is Charles Stanley Financial Solutions (CSFS). CSFS can offer the following:
- An initial conversation to discuss options and to agree on an approach - no charge
- Support in completing the relevant sign up paperwork and assistance in liaising with the pension administrator - no charge
- Production of compliant initial employee communication materials - £500
- Employee presentations - £380 per 2-hour presentation (additional costs for travel and out of pocket expenses may apply)
- Individual consultancy meetings with your employees, if required - £87.50 per employee for a 30-minute consultancy (these will normally be by telephone)
You may also choose to seek additional support as you approach your staging date and/or to commission an annual review of the overall scheme. For this, CSFS charges £1,300 per day or £190 per hour plus any required travel and out of pocket expenses. Equally, you may decide that you do not need advice or that you would prefer to consult your own financial adviser.
The charge to employees for managing their pension is the annual management charge of 0.44%, well below the industry average. This leaves more money in employees' pension pots on retirement.
When employees enrol, their money is invested into a diversified Lifestyle default fund. If they choose, they can transfer out of the default fund into any of over 200 funds. Some carry additional charges.