So, you are thinking about whether can I change my workplace pension provider. Then, you are on the way to make your most expensive employee benefit. Your organization’s pension scheme must reflect a brand.
A pension scheme is one of the best ways to make feel your employees valued. So, you must pick the right pension scheme for your employees to boost engagement, which leads to ultimate employee satisfaction.
There can be various reasons that make you think about a shift. Indeed, moving your entire pension scheme to a new one can be a little bit challenging. However, don’t think so much.
Nowadays, switching your workplace pension provider has become a hassle-free task To gather more information, continue reading this article.
Here, in this article, I will wrap together what is workplace pension scheme, can I change my workplace pension provider. Reasons to change my workplace pension provider, and how to switch my workplace pension provider,
Let’s dive into the deep!
What is Workplace Pension?
A workplace pension scheme is securing the retirement of an employee through contributions deducted directly from the wages.
An employer also makes a contribution to an employee’s pension fund through this scheme.
If an employer is eligible for automatic enrolment, then the employer must make contributions to this scheme.
There are two types of workplace pensions,
- Occupational pensions
- Group personal pensions or Stakeholder pension
Occupational Pensions: This type of workplace pension is set up by the employers to provide pensions to the employees. There are two types of occupational pensions,
- final salary schemes
- money purchase schemes
Group personal pensions or Stakeholder pensions: Group personal pensions and stakeholder pensions work in similar ways as you can arrange for yourself. In this category, the employer will choose the pension provider but the employee needs to have an individual contract with the provider.
Group personal pensions or Stakeholder pensions can be an option if the employee is not eligible for automatic enrollment into the workplace pension scheme.
Can I Change My Workplace Pension Provider?
Yes, switching the workplace pension provider is possible. Nobody will not locked into a single pension provider for a lifetime.
As an employer, you are completely free to shift your entire team’s pension provider at any time.
Any time, you feel there is a requirement to change the workplace pension provider, you can go ahead.
Shifting to a potential and effective workplace pension provider can have a great impact on employee engagement. Moreover, there is no need to spend an extra penny for this movement.
Reasons to Change My Workplace Pension Provider
Your business as well as your employees may suffer if you don’t approach modern digital pension providers when it is super easy to switch.
You must think again about these key factors before planning to switch your workplace pension provider.
Is your present pension provider helping you to save money?
If your present pension provider does not tell you about the tax hack that gives back, then you must think about a switch.
Your present pension provider is doing a disservice to you. Salary sacrifice is a money-saving way for both your employees and your company.
The tax you are hacking away is NI (National Insurance). Employees pay this according to their salary, and the company also pays based on the wage bill.
So, the bigger the salary is, they pay NI the more. The less an employee earns, the less they pay NI.
You and your employees could be losing out for the retirement:
Not switching your pension provider may cost you and your employees beyond your imagination. Past performance is not a good indicator of other future returns.
The average annualized growth rate tends to range between 3 to 4%. At the same time, the worst performers tend to range between 4 to 6%.
So, if you are stuck within a poor-performing pension provider throughout your life, then you including your employees will have a worse impact on the total retirement plan.
So, you must review your workplace pension provider now!
Employees are worried about money and they are less productive:
When the employees are worried about their money, it will have a worse impact on their work.
According to some reports, when employees are more worried about their money, they tend to have more sick days. They feel less motivated and less engaged. They become dissatisfied with the work, which ultimately leads to a drop in overall productivity.
An easier way to solve this issue is by providing a pension plan. You must look for a pension provider that comes with an app version, so the employees can handle all the operations using their phone.
Thus, the employees will have a clear picture of their post-work income. Ultimately, when the employees are happier, they will more concentrate on their work.
Attracting the best talent:
If your employees are not attracted to your pension scheme because it is complicated, boring, and more. Then it is the right time to ask yourself whether it is the right time for a shift to workplace pension provider.
You must look for a digital and modern pension provider that sits on any phone. The app must be easy to manage.
When you provide something as attractive as TikTok to your employees, new talents will be attracted to your organization.
Your pension scheme can be a reflection of your brand. If you have an experienced, and talented, and motivated team, there is no need to worry about productivity!
How To Switch Your Workplace Pension
There are 3 main steps that you need to consider to switch over your workplace pension.
Step 1: Find Your New Pension Provider:
The first step is the most important one. You have to find out your new pension provider. In the UK, you will have a variety of options, each comes with its advantages as well as disadvantages.
So, you just take some time to research them and think which option is the most suitable one for you.
Suppose, you have a large team in your organization, and you look for a provider that offers resources and support.
So, you can save a lot of time each day from answering all the questions your team has.
If the pension provider provides all the support to the team, the employees can access and manage their pension schemes on their own.
If you are looking for something suitable for a start-up, you must select a pension that is flexible and modern.
Step 2: Notify Your Old Pension Provider:
The next step involves informing your present pension provider about this switch.
You must tell them to which pension provider and to which scheme you are switching. Your account manager will perform this task through an email or a call.
Then the two pension providers will take care of this shift. They will inform you when everything is ready for you.
Step 3: Brief Your Team:
Lastly, you must inform your team about what is going to happen. It is a good idea to let them know about their money beforehand.
The employees must know what is going to take place with their money. There must be some reasons for this switch, so you must tell your employees about the upcoming benefits from the switch.
You must tell them about the terms and conditions of the new pension scheme.
Normally, there may arise some pension-related questions among the team. Many employees will look into their pensions, their plans, contributions, benefits, and more.
You can conduct a welcome session with the new pension provider to solve the questions of your team.
FAQ:
Can I change my workplace pension provider?
Ans: If some circumstances arise in the long run that you are getting worried about the returns of your present workplace pension scheme, it’s time to shift. Transferring workplace pension providers is quite a simple process. You are free to shift your team’s pension provider at any time.
How do I change my workplace pension provider?
Ans: To change your workplace pension provider, you just need to follow the three below steps. These include finding the right workplace pension provider, informing your present pension provider, and telling your team about this shift.
How long does it take to transfer a pension to another provider?
Ans: Normally, it takes 6 to 8 weeks, however, it may take longer depending on your investments and provider.
Conclusion:
Switching your team over to a new workplace pension provider is easy. You must inform the new pension provider where you are switching from. They both will look after everything and let you know.
Here, in this article, I have provided every detail regarding how can I change my workplace pension provider. You can go through this article and hope, this guide will help you all the way around. You should keep in mind that you must look for the cutting-edge, and cost-effective workplace pension that your entire team will like.
