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Presentation to. Wednesday 12th June, 2013 – 10.30am Unite House 128 Theobald's Road Holborn London WC1X 8TN. Pensions The next 5 years. In the UK, there are 16 million employees who will be exposed to changes in pensions legislation during the next 5 years. - PowerPoint PPT Presentation
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Presentation to
Wednesday 12th June, 2013 – 10.30amUnite House
128 Theobald's RoadHolbornLondon
WC1X 8TN
PensionsThe next 5 years
In the UK, there are 16 million employees who will be exposed to changes in pensions legislation during the next 5 years.
There are over 8 million of these employees that will automatically be enrolled into a qualifying workplace pension scheme over the next four to five years. In 2014 alone, 1.1 million employers will face additional legislative responsibilities and the requirement to choose an Auto Enrolment Workplace Pension Scheme.
Are employers ready for Auto Enrolment?
PensionsThe next 5 years
Are you aware of the legislative responsibilities?Are you aware of the legislative responsibilities?
BlueSky’s Auto Enrolment and Data PackageBlueSky’s Auto Enrolment and Data Package
Do you have a Qualifying AE Pension Scheme to join?Do you have a Qualifying AE Pension Scheme to join?
BlueSky Pension SchemeBlueSky Pension Scheme
When do you need to commence pension contributions?When do you need to commence pension contributions?
When do you need to commence pension contributions?When do you need to commence pension contributions?
From October 2012, any employer with employees being paid by PAYE has been required, by Government legislation, to nominate a ‘qualifying workplace pension scheme’ and ‘auto-enrol’ certain categories of its employees.
The table below details the date at which an employer needs to commence pension contributions but may be subject to further change by the DWP.
Employer size (by PAYE scheme size) or other description
From (inc.) To (inc.)
120,000 to 800 employees 1st October 2012 1st October 2013799 to 250 1st November 2013 1st February 2014 249 to 50 1st April 2014 1st April 2015 Test tranche for less than 30 1st June 2015 30th June 2015 49 to 30 1st August 2015 1st October 2015 Less than 30 1st January 2016 1st April 2017 Employers without PAYE schemes 1st April 2017New employers 1st May 2017
Staging Dates
Are you aware of the legislative responsibilities?Are you aware of the legislative responsibilities?
Before staging date
6 months before - Posters informing employees that ‘auto-enrolment’ is approaching
Register a point of contact with the Pensions Regulator
4 months before - Register chosen pension scheme with the Pensions Regulator
Provide data covering employer, scheme used, postponement and number of workers
Workers already in a scheme must be provided with information about the scheme
All data must be kept for at least 6 years
Legislation
Are you aware of the legislative responsibilities?Are you aware of the legislative responsibilities?
From Staging date
Eligible Jobholders aged 22 – SPA must be automatically enrolled must be written to with information about the chosen pension scheme must have the option of opting out*
Non Eligible Jobholders and Entitled Workers must be provided with information about the chosen pension scheme must be provided with information on how to ‘opt in’ or join a scheme
Contribute Staging Date to October 2017 - 2% of total pay (employer must pay 1%) October 2017 to September 2018 - 5% of total pay (employer must pay 2%) October 2018 onwards - 7% of total pay (employer must pay 3%)**
Monitor Each pay period, employees need to be assessed for enrolment
*‘Opt out’ employees will need to be re-enrolled every 3 years* *These examples are based on total pay. There are alternative definitions of pensionable pay which may result in higher rates of contributions to be paid.
Legislation
BlueSky’s Auto Enrolment and Data PackageBlueSky’s Auto Enrolment and Data Package
BlueSky’s Auto Enrolment Data and Communication Package
Fully compliant with all legislation
Forms part of BlueSky’s ‘one system for all’ administration system
Online creation and submission tool
Member ‘opt in’ or ‘opt out’ facility
Real Time Information (RTI) reporting
Pre and post Payroll reporting
Full Communication package covering all legislative requirements
No set up fee
Annual fee with 10% employee number fluctuation included
* See appendix for example process
AE Legislation Solution
Do you have a Qualifying AE Pension Scheme to join?Do you have a Qualifying AE Pension Scheme to join?
An Auto Enrolment Qualifying Workplace Pension Scheme
Must not have any barriers to entry
Must not require members to sign any paperwork to be ‘automatically enrolled’
Must have an online process for ‘opting-in’ and ‘opting-out’
and
Must state that contributions to the scheme will reach minimum requirements by 2018
or
Be accompanied by a statement from the employer
Choosing a Pension Scheme
BlueSky Pension SchemeBlueSky Pension Scheme
The BlueSky Pension Scheme is a Multiple Employer SuperTrust
The ECA and Unite as its ‘Preferred Supplier’
to the Electrical Contracting Industry
BlueSky is non profit – run for the members
No cost to the Employer, paid by members – 0.3% for 2013
Operational since 1988
Over 250 employers already participating
Funds under management in excess of £260m
Administered in the UK
Trustee Board and appointed professional advisors
Dynamically Managed Target Date Funds or 11 further ‘Self Select’ funds
Web based access for members, employers and advisors (MAP, SUN and APS)
How to choose
Who has recommended
BlueSky?
Are fees paid to any party?
Is BlueSky proven?
Who monitors the
BlueSky Pension
Scheme?
What are the members’ investment
options?
What are the costs?
How accessible is
BlueSky?
BlueSky Pension SchemeBlueSky Pension Scheme
Investment Options
12 member selected options
Default
Target Date Funds – offering dynamic asset allocation aiming to provide a risk reduced age appropriate diversified fund
Plus 11 ‘white labelled’ funds – with overview and monitoring
Global Equity Passive - aims to passively track performance of global equities.
Global Equity Active - aims to outperform global equities on a risk adjusted basis over three to five years
UK Gilts - aims to passively track performance of UK gilts
UK Property - aims to outperform UK property on a risk adjusted basis over three to five years
Index Linked Gilts - aims to passively track performance of UK index linked gilts
Cash - aims to perform in line with wholesale money market short-term interest rates
UK Corporate Bonds - aims to outperform UK corporate bonds on a risk adjusted basis over three to five years
Emerging Markets - aims to outperform emerging market equities on a risk adjusted basis over three to five years
UK Equity Active - aims to outperform UK equities on a risk adjusted basis over three to five years
UK Small Cap - aims to outperform UK small capitalisation equities on a risk adjusted basis over three to five years
Multi Asset Sharia – investing in Sharia compliant diversified funds
BlueSky Pension SchemeBlueSky Pension Scheme
Target Date Funds
• Key features:Age appropriate diversified growth fundsMix various asset classes with age appropriate allocationAre monitored daily by strategist and consultant
Aim - To reduce risk providing greater member outcome
0%
20%
40%
60%
80%
100%
40 yrs 30 yrs 20 yrs 10 yrs 0 +10 yrs
Allo
catio
n
Short Duration Index-Linked Gilts
Long Duration Index Linked Gilts
Short Duration Gilts
Medium Duration Gilts
Long Duration Gilts
UK Long Duration Corporate Bonds
Global Corporate Bonds
Global Property
Emerging Market Equities
Global Developed Market Equities
UK Equities
TargetYears
Adventurous Managed Balanced Managed Cautious Managed Defensive Managed
One Fund for Life Allows Members to Focus on Saving
BlueSky Pension SchemeBlueSky Pension Scheme
Benefits
• No short service refunds of contributionsEncouraging pension savings
• Transfers inConsolidation, taking advantage of BlueSky’s annuity sourcing service on retirement
• Transfers outNo restrictions or charges - the value of the member’s account is the amount transferred
• Pre retirement planningAt 5 years, 2 years, 6 months and 3 months before retirement
• Retirement processingAnnuity sourcing at no extra cost and drawdown options
• Death benefitsPaid at the discretion of the Trustee as either a return of fund or, if selected, an annuity
BlueSky Pension SchemeBlueSky Pension Scheme
Costs
• There is no cost to the Employer of operating BlueSky • With other providers, many of the functions described
above will need to be undertaken by the employer• BlueSky provides full support and expertise to the employer
enabling them to minimise the time dedicated to pension operations
• Annual Management Charge (AMC) 2013 : 0.3%• jdgfbJOBDGJ;sbdg;jbSDGJB;bgd;JB 2014 : 0.3%• Investment costs as low as 0.2%• Default option 2013 : 0.33%• Default option 2014 : 0.26%• Annuity set up at no extra cost
BlueSky
The complete pension solution
For members For employers For management
BlueSky’s Auto Enrolment and Data PackageBlueSky’s Auto Enrolment and Data Package
Appendix
BlueSky’s Auto Enrolment and Data PackageBlueSky’s Auto Enrolment and Data Package
Appendix
BlueSky’s Auto Enrolment and Data PackageBlueSky’s Auto Enrolment and Data Package
Appendix
BlueSky’s Auto Enrolment and Data PackageBlueSky’s Auto Enrolment and Data Package
Appendix
BlueSky’s Auto Enrolment and Data PackageBlueSky’s Auto Enrolment and Data Package
Appendix
BlueSky Pension SchemeBlueSky Pension Scheme
Structure
BlueSky Pension Scheme
Accreditations and referees
BlueSky Pensions
Ltd
Management TeamsSupport Team
Contracted Partners
JIB Trustee Company
Ltd
Executive
Administration Teams
BlueSky Pension SchemeBlueSky Pension Scheme
Administration Setup
IntellipenBlueSky
Database
Annuity Portal
HSBC gateway
Contribution InterfaceCalculations
Auto enrolment
package
Payroll
Member portal
Scanning system
BlueSky Pension SchemeBlueSky Pension Scheme
The BlueSky Pension Scheme is a Multiple Employer SuperTrust
How to choose
Who has recommended BlueSky?
Are fees paid to any party?
What are the costs?
Is BlueSky proven?
Who monitors the BlueSky Pension Scheme?
What are the members’ investment options?
How accessible is BlueSky?
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