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.
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?
Pensions
The next 5 years
When do you need to commence pension contributions?
Are you aware of the legislative responsibilities?
BlueSky’s Auto Enrolment and Data Package
Do you have a Qualifying AE Pension Scheme to join?
BlueSky Pension Scheme
Staging Dates
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
120,000 to 800 employees
799 to 250
249 to 50
Test tranche for less than 30
49 to 30
Less than 30
Employers without PAYE schemes
New employers
From (inc.)
To (inc.)
1st
1st
1st
1st
1st
1st
1st
1st
1st October 2013
1st February 2014
1st April 2015
30th June 2015
1st October 2015
1st April 2017
October 2012
November 2013
April 2014
June 2015
August 2015
January 2016
April 2017
May 2017
Legislation
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?
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
 October 2017 to September 2018
 October 2018 onwards
Monitor

-
2% of total pay (employer must pay 1%)
5% of total pay (employer must pay 2%)
7% of total pay (employer must pay 3%)**
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.
AE Legislation Solution
BlueSky’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
Choosing a Pension Scheme
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
How to choose
BlueSky Pension Scheme
The BlueSky Pension Scheme is a Multiple Employer SuperTrust
Who
What
are
the
Who
How
has
monitors
the
What
are
the
Are
fees
paid
Is
BlueSky
members’
recommended
accessible
is
BlueSky
costs?
toinvestment
any
party?
proven?
BlueSky?
Pension
options?
Scheme?
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)
Investment Options
BlueSky Pension Scheme
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
Target Date Funds
BlueSky Pension Scheme
Adventurous Managed
Balanced Managed
Cautious Managed
Defensive Managed
Target
Years
Short Duration Index-Linked Gilts
100%
Long Duration Index Linked Gilts
80%
Short Duration Gilts
Allocation
Medium Duration Gilts
60%
Long Duration Gilts
UK Long Duration Corporate Bonds
40%
Global Corporate Bonds
Global Property
20%
Emerging Market Equities
Global Developed Market Equities
0%
UK Equities
40 yrs
•
30 yrs
20 yrs
10 yrs
0
+10 yrs
Key features:
Age appropriate diversified growth funds
Mix various asset classes with age appropriate allocation
Are monitored daily by strategist and consultant
Aim - To reduce risk providing greater member outcome
One Fund for Life Allows Members to Focus on Saving
Benefits
BlueSky Pension Scheme
•
No short service refunds of contributions
Encouraging pension savings
•
Transfers in
Consolidation, taking advantage of BlueSky’s annuity sourcing service on retirement
•
Transfers out
No restrictions or charges - the value of the member’s account is the amount transferred
•
Pre retirement planning
At 5 years, 2 years, 6 months and 3 months before retirement
•
Retirement processing
Annuity sourcing at no extra cost and drawdown options
•
Death benefits
Paid at the discretion of the Trustee as either a return of fund or, if selected, an annuity
Costs
BlueSky Pension Scheme
•
•
•
•
•
•
•
•
•
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
Appendix
BlueSky’s Auto Enrolment and Data Package
Appendix
BlueSky’s Auto Enrolment and Data Package
Appendix
BlueSky’s Auto Enrolment and Data Package
Appendix
BlueSky’s Auto Enrolment and Data Package
Appendix
BlueSky’s Auto Enrolment and Data Package
Structure
BlueSky Pension Scheme
JIB Trustee
Company
Ltd
BlueSky
Pensions
Ltd
Accreditations
and referees
Contracted
Partners
BlueSky
Pension
Scheme
Executive
Management
Teams
Support Team
Administration
Teams
Administration Setup
BlueSky Pension Scheme
Payroll
Annuity
Portal
Auto
enrolment
package
HSBC
gateway
Intellipen
BlueSky
Database
Member
portal
Contribution
Interface
Calculations
Scanning
system
How to choose
BlueSky Pension Scheme
The BlueSky Pension Scheme is a Multiple Employer SuperTrust
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?