B&CE, UK provider of financial benefits (including pensions) to the construction industry and allied trades, today announced that in early November 2011, it will launch an alternative pension offering that will be available to everyone, regardless of their sector. This launch will build on the success B&CE has had in providing workplace pension solutions to an industry that is typical of the market targeted by the introduction of automatic enrolment.
The new brand has been created to address a combination of factors that will ultimately benefit new and existing members. First and foremost, feedback from many of B&CE’s current customers indicated that they wanted to use the existing scheme across other, more diversified and non-construction parts of their businesses and the branding focus of the current scheme was potentially not suitable for all of these operations. This, coupled with research[1] commissioned by B&CE amongst the mainstream financial services industry, highlighted a very favourable response to B&CE’s current product and services. It also cemented the need and appetite for more choice to meet the challenges of auto enrolment, particularly around the low to moderate earning employee marketplace.
B&CE Director of Finance and Strategic Delivery, Patrick Heath-Lay says: “While the construction industry will remain at the heart of B&CE’s efforts, our decision to diversify will benefit those working in construction and beyond. We have a 30 year proven track record in delivering a workplace pension solution that is driven by trust, simplicity, transparency and clear communication and this is what employers and employees are looking for.
Currently over 1.6 million people (predominantly part of a highly transient workforce) enjoy the benefits of a B&CE workplace pension scheme.
Setting the record straight
As a company with an impressive track-record in the pension industry, B&CE is leading the call for a number of industry issues to be addressed, which include:
· Increasing awareness of the changes but also more assistance for employers to cope with the regulatory aspects of the reforms. Economic times are tough and the last thing businesses need to be worrying about is the prospect of becoming regulatory experts and pensions administrators. Our experience has taught us that the practicalities of operating a workplace scheme in a highly transient, operationally diverse arena, places unwanted strain on employers, let alone adding the complexities of regulating the automatic enrolment requirements.
· The increasing misconception that NEST is auto enrolment. B&CE believes employers are entitled to and should be aware, that they do have a choice and a voice when it comes to workplace pensions and B&CE is responding to this through the launch of its new brand. Increasing consumer choice in this way should drive better outcomes for the UK workplace population.
· Simplicity and transparency are crucial factors in the automatic enrolment solution. Our 30 years of experience has taught us that to truly engage workforces in workplace saving, simplicity and transparency in design, operational execution and communication are crucial. One particular area that needs to be addressed is a consistent and more transparent approach to charging. The industry is consistently receiving criticism in relation to charging and it is critical that both employers and employees can have a clear look through on the charging issue in relation to the performance of the funds. B&CE is already a recognised provider of the lowest cost workplace pension solution[2] and with a transparent charging structure believes it will continue to lead the way in this arena.
Patrick continues: “We recognise and support the need for pension reforms and to create an agenda where its pays for the whole population to save for retirement. There are clearly big challenges ahead for the industry in re-storing faith in pensions but UK employers and employees need to be aware that there are options available to them. They continue to cry out for transparency, trust and simplicity from their pension and by opening our offering to everyone we can play a big part in addressing these issues.”
Note to editors:
For more details about the launch, please contact: Stephanie Davey or Lydia Cambata at Living PR. Tel: 020 7739 8899 or email B&CE@living-group.com.
About B&CE
Since 1942, B&CE has provided financial welfare benefits to those working within the construction industry and their dependants. Today it manages assets of over £1.8 billion.
B&CE’s current product offering includes a workplace pension, employee accident cover, employee life cover, employee healthcare and holiday pay.
[1] NMG Financial Services Consulting Ltd
[2] Money Management survey, Josephine Cumbo, 27 September 2011