Auto Enrolment Webinar with BrightPay and NEST

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Three Simple but Effective AE Pricing Plans

NEST - Helping make auto enrolment work for you

By Karen Bennett, BrightPay

By John Hale, NEST Corporation

By Karen Bennett

Three Simple but Effective

Auto Enrolment Pricing Plans

By John Hale

NEST - Helping make auto

enrolment work for you

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Three Simple but Effective

Auto Enrolment Pricing Plans

Webinar Agenda

Auto Enrolment

Overview

Auto Enrolment as

a Service

Pricing Auto

Enrolment Services

Tiered Pricing

Strategy

Monthly

Retainer Fee

Price List

Approach

Increase Profits

with BrightPay

How BrightPay

can help?

Introduction to

BrightPay Connect

Auto Enrolment Overview

Entitled Workers

Non Eligible Jobholders

Eligible Jobholders


Eligible Jobholders

• Aged between 22 and State Pension age

• Earn more that £10,000 per year

• Work, or ordinarily work, in the UK


• Set up a pension scheme with a

qualifying workplace pension provider

• No eligible jobholders? No need to set

up a pension scheme

• If an employee chooses to opt in or

join, a scheme must then be set up


• At staging employers must assess all

employees

• If an employee is an eligible jobholder

they must be enrolled into a workplace

pension scheme


• ALL employees must receive

communications within six weeks

• Employees must be notified of auto

enrolment and how it affects them

• Postponed employees must also receive

communications within six weeks


• Ongoing duties:

Handling opt-outs and refunds

Managing opt-in and joining requests

Making deductions and contributions

Monitoring employees each pay period

Sending contributions to the pension provider


• Employers must complete a declaration

of compliance

• Must be completed within 5 months of

staging date

• Notifies TPR that you have complied

with AE


Auto Enrolment as a Service


Employers with less than

50 employees

of an accountants client

base is made up of:

90%

• Are you ready or prepared to take

on auto enrolment business?

• What level of support / information

will you offer?

• Are you prepared for employers

coming to you last minute?


• Offer a complete end to end solution

• Bureaus can generate income and enhance

client relationships

• A new platform to reach and upsell to

• Employers will be happier to consolidate all

their outsourced services to one person or

advisor


Pricing Auto Enrolment Services


• Prices vary dramatically across the

market

• Dependent on the no. of employees

and the level of AE services

• Offer a free AE consultation with clients

• Explain the various administrative

aspects of AE


• The three main advantages:

1) Understand how much is involved

in AE

2) Much more receptive to your fee

quotation

3) Eliminate your clients seeking AE

advice from you for free


Tiered Pricing Structure

Monthly Retainer Fee

Price List Strategy

Tiered Pricing Strategy

1. Tiered Pricing Strategy

“A tiered strategy is where a bureau can provide AE services at

different price points for different levels of service”

• For example, shipping costs when purchasing online

• Clearly outlines the value and price differences between different

levels of service

• Allows clients to choose a price point that suits their budget

• Employee Assessment

• Enrolling Employees Tier 1

• AE Communications Tier 2

• Processing opt ins/outs Tier 4

• Postponement

• Declaration of Compliance

• Ongoing AE duties

Tier 3

How to charge for AE services?

Monthly Retainer Fee

2. Monthly Retainer Fee

“A monthly retainer fee is an agreed amount to be paid on a

monthly basis for completion of an agreed set of tasks”

• Increase a clients monthly charge for processing their clients

payroll and auto enrolment

• Spreads the cost of auto enrolment over a period of time, rather

than a large fee initially

• A simple way to include ongoing AE duties

• Consistent & predictable revenue stream each month

2. Monthly Retainer Fee

“A monthly retainer fee is an agreed amount to be paid on a

monthly basis for completion of an agreed set of tasks”

• Appeals to clients as it guarantees the bureau will carry out

specific AE task each month

• Understand what payroll and auto enrolment will cost, allowing

them to plan accordingly

• Ongoing duties should be automated with minimal time required

Price List Approach

3. Price List Strategy

“A price list is a simple way to present a list of services – breaks down

each AE process into bite-sized pieces for your clients.”

• Some bureaus may decide to only handle some auto enrolment

tasks

• Demonstrates exactly what is being offered as a chargeable

service

• Cost itemisation: justifies the price charged for AE


• A clear pricing structure will allow any

bureau to cost and schedule AE duties for

each client

• Bureaus can establish clarity while

effectively increasing profits

• Client can decide which of the tasks they

want to outsource / process in-house

Increase Profits with BrightPay

Minimise CostsSimplify &

Automate

Pre-Assssment

Tool

Pension

Integration

Importing to

BrightPay

BrightPay

Connect

Minimise Costs

• Avoid any unnecessary costs

• BrightPay Bureau Licence: £229 + VAT

– Unlimited employers

– Unlimited employees

– Free phone & email support

– Full AE, CIS & P11D functionality


Automate

Pre-

Assessment

Tool

Pension

Integration

Importing to

BrightPay

BrightPay

Connect

Simplify & Automate


Automate

Pre-

Assessment

Tool

Pension

Integration

Importing to

BrightPay

BrightPay

Connect

Pre-Assessment Tool


Automate

Pre-

Assessment

Tool

Pension

Integration

Importing to

BrightPay

BrightPay

Connect

Pension Integration

• Direct integration with NEST and

Smart Pension (API)

• Avoid having to manually create

enrolment and contribution files

• Saves bureaus time and reduces

data processing errors


Automate

Pre-

Assessment

Tool

Pension

Integration

Importing to

BrightPay

BrightPay

Connect

Importing to BrightPay

• Easy import from other payroll software

providers including Sage, Iris & Moneysoft

• Ability to import via FPS or CSV

• Seamless import from HMRC Basic PAYE

Tools at the click of a button


Automate

Pre-

Assessment

Tool

Pension

Integration

Importing to

BrightPay

BrightPay

Connect

BrightPay’s Approach to Auto Enrolment

NEST public

NEST works

April 2017

© NEST Corporation 2015

Legal information

© NEST Corporation 2015. All rights reserved. This information doesn’t constitute

financial, investment or professional advice and shouldn’t be relied on.

We don’t make any personal recommendation or give advice to employers and their

workers on how to make investment decisions. If you’re considering using NEST you

might want to talk with an appropriately qualified financial adviser.

We don’t give any undertaking or make any representation or warranty that this

document is complete or error free. We don’t accept responsibility for any loss caused

as a result of any error, inaccuracy or incompleteness.

Any form of reproduction of all or any part of these slides is not allowed.

41


NEST works…for auto enrolment

Purpose-built Well run Online and easy to use

Established by government Not for profit It’s all we do

42


NEST works…….

Free to use Low cost for

members

Same for everyone

Opt outs made easy Others can help run NEST

NEST 2031

Retirement

Date Fund

NEST 2032

Retirement

Date FundNEST 2033

Retirement

Date FundNEST 2034

Retirement

Date FundNEST 2035

Retirement

Date Fund

Award-winning

default fund

43


How to make auto-enrolment work

1. Know your Staging Date

2. Choose your pension provider

3. Check your payroll can deal with auto-enrolment

4. Can your payroll produce files compatible with your provider’s requirements

5. Or better……. can your payroll send data to your pension provider via web services?

6. Make sure your pension scheme set up matches the way your payroll works (e.g. if you pay weekly then

you will need a pension scheme that can deal with weekly pay etc)

7. Issue the statutory communications in good time

8. Build processes to send data and make payments that work each pay period

44


Employers

NEST works for…

Members

338,000+ 4.6m+Over £1.6 billion

funds

under management

15,680+

45

NEST Connectors


Connect with us at linkedin.com/company/nestpensions

Follow us @nestpensions

Visit nestpensions.org.uk/professionalshelpingemployers

and sign up for our monthly newsletter

Visit nestpensions.org.uk/events for our webinars

Questions & Answers

For more information visit www.brightpay.co.uk, email

[email protected] or phone 0845 3004 304

http://www.brightpay.co.uk/

mailto:[email protected]

Auto Enrolment Webinar with BrightPay and NEST

Software

Transcript of Auto Enrolment Webinar with BrightPay and NEST