Enabling enrolment empowering employers Innovative solutions Enabling enrolment, empowering...

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  • For adviser, employer and trustee use only.

    Enabling enrolment, empowering employers Innovative solutions for  automatic enrolment

    AV276081_AE068_AE01011_0619.indd 1 7/2/19 1:35 PM

  • 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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  • 4 | Enabling enrolment, empowering employers

    System thinking Technology for effective enrolment administration Our 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 box Data 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

    Technology to apply employer

    data against the regulations

    Default investment

    solutions in line with DWP best

    practice

    Communications to generate tailored

    information for workers

    Technology to apply employer

    data against the regulations

    Default investment

    solutions in line with DWP best

    practice

    Communications to generate tailored

    information for workers

    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.

    AV276081_AE068_AE01011_0619.indd 4 7/2/19 1:35 PM

  • Enabling enrolment, empowering employers | 5

    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.

    Technology to apply employer

    data against the regulations

    Default investment

    solutions in line with DWP best

    practice

    Communications to generate tailored

    information for workers

    Technology to apply employer

    data against the regulations

    Default investment

    solutions in line with DWP best

    practice

    Communications to generate tailored

    information for workers

    Technology to apply employer

    data against the regulations

    Default investment

    solutions in line with DWP best

    practice

    Communications to generate tailored

    information for workers

    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?

    AV276081_AE068_AE01011_0619.indd 5 7/2/19 1:35 PM

  • 6 | Enabling enrolment, empowering employers

    Illustrate and illuminate Communications to guide workers through enrolment Our 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 Smith 1 Sample Street Sample Town Sample County AB1 2YZ

    Pension saving is around the corner Here’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