Enabling enrolment empowering employers Innovative solutions … · Enabling enrolment, empowering employers | 3 Our services help to ensure that employers are able to satisfy their

For adviser, employer and trustee use only.

Enabling enrolment, empowering employersInnovative solutions for automatic enrolment

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2 | Enabling enrolment, empowering employers

Services to satisfy employer duties

Automatic enrolment (we call it ‘AE’ throughout this guide) was a landmark moment for workplace pensions. But behind its aim – to kick the UK out of a savings slumber that’s leaving workers underprepared for retirement – there are duties the employer has to fulfil.

There are different ways to tackle AE, and our services are flexible to accommodate the different levels of support employers need.

We’ve consulted with industry bodies and a number of our largest clients to develop effective support for automatic enrolment. This guide provides a quick introduction to our services.

The services are available to pension schemes on our My Money and New Generation Pensions (NGP) platforms, subject to agreement with Aviva.

Technology

Systems designed to apply employer data against the regulations and provide administration services

Pages 4 to 5

Communications

Notices developed to fulfil the employer’s duty to provide workers with relevant information

Pages 6 to 7

Default investment solutions

My Future or bespoke investment options built in line with Department for Work and Pensions (DWP) best practice

Pages 8 to 9

Duty bound

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Enabling enrolment, empowering employers | 3

Our services help to ensure that employers are able to satisfy their duties. There’s four options for the employer to use with their Aviva scheme:

• Option 1 – qualifying only scheme

• Option 2 – AE scheme

• Option 3 – AE plus communications

• Option 4 – AE plus technology and communications

Option 1 Option 2 Option 3 Option 4

Establish scheme meets relevant criteria

Technology (pages 4–5)

Assess workers against regulations

Store data for reporting purposes 1

Generate reports and MI 1

Communications (6–7)

Issue postponement notices

Issue assessment notices

Default investment solutions (8–9)

Set up new default option

Other services (10)

Facilitate opt-in, join, opt-out requests

Technical and educational materials

Employer options

Notes

A qualifying scheme (option 1) meets the relevant criteria for existing members only. A separate scheme is used to enrol new hires/non members.

An AE scheme (options 2,3 or 4) meets the relevant criteria for all existing members and the enrolment of new hires/non members.1 We provide and store information about opt-out requests received and the enrolment communications issued.

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System thinkingTechnology for effective enrolment administrationOur AE technology has been developed to provide a comprehensive assessment of employer data against the regulations.

Payroll data is fed into the technology, which provides workforce assessment, holds records of opt-in, join and opt-out requests and stores AE data for regulatory reporting.

Thinking inside the boxData processing and assessment results are provided immediately. The technology supports schemes operating tax relief at source, or net pay and salary exchange (sometimes known as salary sacrifice) arrangements for member contributions.

Note: contributions raised using salary exchange will be received into the pension as employer contributions. This can be used as an alternative to direct employee contributions from both Relief at Source and Net Pay Arrangement schemes.

Our technology ensures that workers are enrolled into an Aviva scheme, with information passed directly to the correct administration platform. This means that employers will only need to provide new joiner information once.

Technology to apply employer

data against the regulations

Default investment

solutions in line with DWP best

practice

Communications to generate tailored

information for workers



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Features of the technology at a glance• workforce assessment against the regulations and scheme

rules, to categorise workers and establish contribution and communication requirements

• activity reporting for employers to request information about workers who request to opt in, join or opt out

• analysis reports available to update payroll and provide management information for employers

• data storage for regulatory reporting purposes

• cyclical automatic re-enrolment performed, with information monitored for workers who have opted out.

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Data is processed and assessment results are provided immediately, with the information also used to generate enrolment communications for each worker (see pages 6 and 7). Data files are accepted in .csv (plain text) format.

What’s right for you?It’s important for employers to choose an option that’s right for the scheme. The decision tree below is designed to help you decide which of our services you might need. Employers and trustees should speak to a financial adviser before making any decisions. An adviser may charge for advice.



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Option 2 might be right for you – the scheme is used

for AE, but your assessment and communication duties are ful�lled by yourself or

through a third party.

No

Do you need support from Aviva to provide assessment services for your workforce?

Option 4 might be right for you – the scheme is used for AE,

along with our technology and communications.

Option 3 might be right for you – the scheme is used

for AE, along with our communications. Your assessment duties are ful�lled by yourself or through a third party.

No

Will any further contributions be paid into the scheme?

Employers will not need the services provided by

our technology.

Option 1 might be right for you – the scheme is used for qualifying purposes, but you don't need our

additional services.

No

Yes

Yes

Yes

Yes

No

Will the scheme be open to workers who aren't

existing members?

Do you need support from Aviva to issue your

workers with enrolment communications?

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Illustrate and illuminateCommunications to guide workers through enrolmentOur enrolment communications are designed to inform and inspire workers, and fulfil the employer’s duties to:

• generate tailored and relevant notices

• issue this information to each worker, along with appropriate product literature.

These are complex duties, which the employer can satisfy by using our range of enrolment notices (along with our ‘Starting points’ guide to pension saving).

The notices – available as emails or letters – are issued on behalf of the employer at the relevant postponement and assessment stages and cover all categories of worker:

• eligible jobholders

• non-eligible jobholders

• entitled workers

• non-qualifying members1

• qualifying members2

1 Existing scheme members where contributions do not currently meet the minimum legal level.

2 Existing scheme members where contributions currently meet the minimum legal level.

Non-member postponement notice (letter – page 1)

Mr A Smith1 Sample StreetSample TownSample CountyAB1 2YZ

Pension saving is around the cornerHere’s why it matters to you

Dear Mr Smith

As part of the government’s aim to get people saving more for their retirement, your employer, Harris, Murray & Smith, has a duty to enrol all eligible workers into a pension scheme.

On 1 July 2013, your employer will assess if you are eligible. If you are, you will be automatically enrolled into a New Generation Group Personal Pension. This is provided by us – Aviva.

Saving into a pension scheme could put you in a good place for the future, but first it helps to know a little more about what being enrolled means.

Where you standWhen it comes to seeing if you qualify for automatic enrolment, your employer will look at your age and how much you earn. What happens once you have been assessed is explained below.

Page 1 of 2

Date of this letter1 April 2013

Our reference123456

Scheme numberF54321

www.avivamicrosite.co.uk/ae

PO Box 1550, Salisbury SP1 2TW

Your employer’s duties are part of a government initiative known as ‘automatic enrolment’.

You will be enrolled into the pension scheme if you are aged between 22 and State Pension age and earn over £9,440 a year.

That works out at:

• £787 a month

• £182 a week

Your employer must enrol you into the scheme and contribute to your retirement pot. You will also be required to pay in.

Age from 22 to SPA*Earn above £9,440 a year

Age from 22 to SPAEarn £5,668 – £9,440 a year

Age from 16 to 21 or SPA to 74Earn above £5,668 a year

Age from 16 to 74Earn below £5,668 a year

Your employer does not have to enrol you, but you have a right to join a scheme. If you join, your employer may contribute. You may also be expected to pay in.

Your employer does not have to enrol you, but you have the right to opt in. If you opt in, your employer must enrol you and contribute. You will also be required to pay in.

* State Pension age (SPA). To find out your SPA, see www.gov.uk/state-pension

For illustrative purposes only.

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Notices tailored and issued to each worker

An employer logo can be added

Specific information about the pension scheme is included




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Making sense of pension savingOur enrolment notices are supported by wider suites of marketing material, which alongside our financial education guides and tools have been developed to deliver an engaging customer journey at each of the stages shown on the right.

Fulfilment optionsThere are three fulfilment options which may be available to employers, subject to agreement with Aviva:

• email – email notices supported by embedded links to online PDFs

• print + online – letter notices, supported by a mix of printed documents and links to online PDFs

• print – letter notices, supported by printed documents.

Additional charges may apply depending on the option chosen.

Non-member postponement notice (letter – page 1)

Mr A Smith1 Sample StreetSample TownSample CountyAB1 2YZ

Pension saving is around the cornerHere’s why it matters to you

Dear Mr Smith

As part of the government’s aim to get people saving more for their retirement, your employer, Harris, Murray & Smith, has a duty to enrol all eligible workers into a pension scheme.

On 1 July 2013, your employer will assess if you are eligible. If you are, you will be automatically enrolled into a New Generation Group Personal Pension. This is provided by us – Aviva.

Saving into a pension scheme could put you in a good place for the future, but first it helps to know a little more about what being enrolled means.

Where you standWhen it comes to seeing if you qualify for automatic enrolment, your employer will look at your age and how much you earn. What happens once you have been assessed is explained below.

Page 1 of 2

Date of this letter1 April 2013

Our reference123456

Scheme numberF54321

www.avivamicrosite.co.uk/ae

PO Box 1550, Salisbury SP1 2TW

Your employer’s duties are part of a government initiative known as ‘automatic enrolment’.

You will be enrolled into the pension scheme if you are aged between 22 and State Pension age and earn over £9,440 a year.

That works out at:

• £787 a month

• £182 a week

Your employer must enrol you into the scheme and contribute to your retirement pot. You will also be required to pay in.

Age from 22 to SPA*Earn above £9,440 a year

Age from 22 to SPAEarn £5,668 – £9,440 a year

Age from 16 to 21 or SPA to 74Earn above £5,668 a year

Age from 16 to 74Earn below £5,668 a year

Your employer does not have to enrol you, but you have a right to join a scheme. If you join, your employer may contribute. You may also be expected to pay in.

Your employer does not have to enrol you, but you have the right to opt in. If you opt in, your employer must enrol you and contribute. You will also be required to pay in.

* State Pension age (SPA). To find out your SPA, see www.gov.uk/state-pension


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An employer logo can be added

Specific information about the pension scheme is included

Awareness

The period leading up to the worker’s initial assessment, or deferred assessment date.

Financial education materials, including posters, flyers, emailers, presentations and webinars.

Postponement

Initial information to employees if the employer has chosen to delay assessment.

Email or letter notices, along with online access to more information about the scheme.

Assessment

When the worker is assessed to determine eligibility for automatic enrolment.

Email or letter notices, along with relevant scheme literature and our ‘Starting points’ guide to pension saving.

Welcome

Shortly after the end of the opt-out period, after the first contribution has been invested.

Confirmation of the member’s policy, along with information about investment options and any other online and offline services.



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Employer signature

Automatic enrolment scheme

No

No

Yes

My Future default

Aviva takes responsibility for

the default

Employer takes responsibility for

the default

Investmentadvice

Scheme specific default

Default investment solutions to meet the new standardPension reform puts a greater emphasis on good quality default investment solutions. With jobholders automatically enrolled into the default option (self-selection is available later), solutions need to meet the Department for Work and Pensions (DWP) guidance on governance, design, reviews and communication.

Recognising different employer and trustee demands, Aviva will offer:

• a range of Aviva My Future default investment solutions, for cases where the employer hasn’t sought investment advice, or where our solution is recommended by the adviser

• the ability to create a scheme-specific solution, where the employer has taken investment advice and a bespoke solution is required.

Future proofed

My Future solutionsThe My Future default investment solutions are designed to appeal to a broad mix of schemes and members. Fully governed and managed by Aviva, the two options are built using sophisticated and flexible investment strategies.



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My Future A low-cost option providing exposure to equities, government bonds and corporate bonds. Risk is managed to ensure members are exposed to the right amount of risk depending on where they are in their retirement journey.

My Future Plus As well as providing exposure to equities, government bonds and corporate bonds, My Future Plus provides exposure to alternative assets, namely emerging market bonds and equities, high yield bonds and commodities. This solution uses a volatility cap to reduce the risk levels in the portfolio in times of market volatility.

Employer signature

Automatic enrolment scheme

No

No

Yes

My Future default

Aviva takes responsibility for

the default

Employer takes responsibility for

the default

Investmentadvice

Scheme specific default



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My Future at a glanceThe My Future options are made up of blended funds which aim to manage risk. Both options, shown in the table below, meet the DWP guidance requirements.

The value of investments is not guaranteed, and can fall as well as rise. There is no guarantee that our My Future options are right for an individual workforce, and members could get back less than what is invested.

* Volatility means the ups and downs of an investment in relation to its value, over a period of time.

GRAPH DATA TO BE SUPPLIED

or move into

or move into

or move into

My Future/My Future Plus Consolidation option

From 15 years before the planned retirement date members can choose to move their pension savings into one of the following

funds:

Members’ pension savings are held in the Growth stage up until 15 years before the

planned retirement date.

My Future/ My Future Plus Growth

My Future/My Future Plus Target Annuity option

My Future/My Future Plus Target Cash Lump Sum option

My Future/My Future Plus Target Drawdown option

How it worksBoth My Future and My Future Plus use a flexible lifetime investment programme to manage a member’s pension plan through their retirement journey. Members can remain in the Consolidation stage until retirement if they have not yet decided how they would like to take their pension savings, as signalled by the first option on the right. Alternatively, members can choose to prepare their pension for the purchase of an annuity, to take their pension as a lump sum, or to take an income from their pension. A member’s pension savings will be moved into the relevant option – My Future/My Future Plus Target Annuity, My Future/My Future Plus Target Cash Lump Sum or My Future/My Future Plus Target Drawdown, as shown in the box on the right, depending on this decision. To prepare for retirement, the allocation of a member’s pension pot to company shares is gradually reduced and the allocation to fixed interest, and therefore less risky investments, is increased. This is done to reduce the risk of losses in the pension pot as members get closer to retirement.

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Opt-in, join and opt-out facilitiesAviva provides forms for all AE schemes (available online or by contacting us). If the scheme uses our technology and/or communications, opt-out requests can be sent online or by calling a dedicated helpline.

Opt in Join Opt out

Option 2

Option 3

Option 4

paper form online telephone

Note: the above forms are not required under option 1.

Further readingMy Future – A guide for employers https://library.aviva.com/ppen23p.pdf

An additional charge applies for My Future Plus. Employers and trustees should speak to an adviser before making any investment decision. An adviser may charge for advice.

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https://library.aviva.com/ppen23p.pdf


Working with youOur technology and communication services have been developed to ensure they’re compatible with the different ways that schemes are managed.

Platform availability

Available to schemes using My Money or New Generation Pensions corporate pension products.

Scheme suitability

Designed to meet the requirements of most employers: large to small schemes, contract and trust arrangements.

Contribution adaptability

Supports different contribution structures1 and can work with salary exchange and contractual joining arrangements.

Employer functionality

Online access to systems backed by customer service. Offline support, including user guides, also available.

Payroll flexibility

Works with schemes operating, weekly, fortnightly, lunar monthly and monthly payrolls

Data reliability

Data is regularly backed up, with scheme and worker records (including opt-out requests) stored in line with regulations2.

1 This includes employers that base contributions on qualifying earnings (QE) or certify the scheme based on sets 1 to 3.

2 Records are maintained for either four or six years as required by relevant legislation.

Further readingMy Future – A guide for employers https://library.aviva.com/ppen23p.pdf

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https://library.aviva.com/ppen23p.pdf

Aviva Life & Pensions UK Limited. Registered in England No. 3253947. Registered office: Aviva, Wellington Row, York, YO90 1WR. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Firm Reference Number 185896.

Calls to Aviva may be recorded. www.aviva.co.uk

AE068 AE01011 06/2019

The information in this guide provides an overview of Aviva’s services for automatic enrolment as at July 2019, which are subject to change. Aviva’s automatic enrolment services are only available to schemes where Aviva is the pension provider, and where Aviva has agreed to provide the services on behalf of the employer.

This guide is for information purposes only and is not intended to constitute a legally binding agreement, contract or representation between the employer/trustees, adviser and Aviva.

Aviva makes no representation, express or implied, as to its accuracy, and accepts no liability for any use of this information or any reliance placed on it.

Discover moreIt’s important for employers to understand their duties. We provide a series of guides which break down the different aspects of pension reform, as well as a range of financial education materials to increase awareness and understanding of AE. All of these are available at www.avivamicrosite.co.uk/ae

Employers should speak to their financial adviser about their options for tackling AE. An adviser may charge for advice. Alternatively, you can get in touch with us by email – [email protected]

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mailto:[email protected]

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Enabling enrolment empowering employers Innovative solutions … · Enabling enrolment, empowering employers | 3 Our services help to ensure that employers are able to satisfy their