In response to claims made by an article in the Daily Telegraph; that contributions to company pensions are ending up in unapproved schemes, Wessex Pensions wishes to offer reassurance and advice to individuals and small businesses.
The article points to cases of workers being enrolled automatically by their employers into ‘illegal’ company pension arrangements that do not qualify for tax relief. The newspaper claims to reveal the “first major legal ‘setback’ to hit auto enrolment”, the government initiative designed to get millions of workers saving for their retirement by making it compulsory for companies to offer staff pensions.
Wessex Pensions, a new company set up to help individuals and companies understand and benefit from Auto Enrolment and other changes to the pension system, recognises that yes, unregulated companies can find their way into any new area of business, particularly where it is a legal requirement to use a service. However, Wessex Pensions says problems can be avoided by taking precautions.
If an unregulated, company providing auto enrolment pensions goes bust, savers could lose their money. Wessex Pensions says if alegitimateand regulated auto enrolment provider ceases trading there is no danger to the funds of the employees whose workplace pensions have been set up through them.
Keith Meredith, Co-Director at Wessex Pensions says:
“Businesses should always check that the workplace pension provider has an HMRC registration and that they are regulated by the Pensions Regulator.
Scheme contributions are received into a master trust and cannot be accessed by the workplace pension provider or its creditors if the business fails. Also reassuring for savers is that independent trustees ensure that the business is being run according to the terms of the master trust and the requirements of the Pensions Regulator.”
Offering an affordable, personal service, Wessex Pensions prides itself as being transparent, fair and here to help.
Keith goes on to say –
“Workplace pension providers, as well as any other pension provider, are required to be audited by independent auditors each year. It’s also worth noting that auto enrolment providers could include companies that just provide auto enrolment services only and not the pension scheme itself. As a member of the Wessex Pensions auto enrolment scheme, our aim is to provide savers with the ability to save long term and deliver retirement benefits.”
Wessex Pensions operates within the rules of a Master Trust that is registered with HMRC and overseen by an independent Trustee Company. For more information on Wessex Pensions and their services, visit: www.wessexpensions.co.uk or call 03333 449 660.
Matt Jenkins
