NEST Charging structure proves good news for existing stakeholder schemes
B&CE, the not for profit organisation that provides the construction industry’s official stakeholder pension scheme, believes the NEST charging structured unveiled this week is good news for existing schemes.
B&CE welcomes the Government’s announcement that the NEST charging structure has been designed to recoup the set up costs with a subsidy from the Government. The levy of a 2% initial charge for the Government’s scheme is particularly good news for existing stakeholder pension schemes, such as B&CE’s EasyBuild, and group personal pension plans in the short term as they will generally offer better value for money during this time. This could well be for a period of 10 to 20 years but will depend upon the level of take up of the scheme.
Going forward, the challenge will be for the existing stakeholder and GPP schemes to review and reduce their charges in order to remain competitive as NEST’s annual management charge is anticipated to be set at 0.3%. This may well be achievable as auto enrolment should result in increased membership and better quality business for schemes like B&CE’s EasyBuild, the current focus of which is the lower-to-moderate earner. It is important to recognise that the changes being implemented by the Government as part of the pensions reform are not just about NEST but will also apply to any private or occupational scheme arranged by an employer.
John Jory, Director of B&CE Insurance Ltd comments ‘B&CE has demonstrated with EasyBuild that stakeholder schemes already in place are more than fit for purpose in tackling the issue of saving for retirement. We aim to ensure EasyBuild will satisfy the legal and compliance obligations for both existing and new customers by becoming a qualifying scheme. EasyBuild is already recognised as the construction industry’s official stakeholder pension scheme and with our extensive experience in administering pension schemes, we understand the needs of both employers and individuals and will work with these customers to ensure they meet all their obligations, allowing them to concentrate on their business.”
For further information please contact:
Jo Gibbs
Communications Manager
01293 586541