Pension Reforms Affecting All Employers

Attending a seminar this morning, the guest speaker was Steve Bee, head of Paradigm Pensions and all-round pensions expert. Steve is even an advisor to the Government about pension reform.

Steve walked us through the history of pension reform and also, more worryingly, talked about the effect of the current pension legislation which will take effect from next year which will result in every single employer having to offer some form of pension scheme for its qualifying employees.

Smaller employers will struggle to get any joy from group pension scheme providers and so NEST (National Employment Savings Trust) will be the alternative choice for most SMEs.

The worrying aspect of all this is how complicated the legislation and rules are going to be and the resulting fines for non-compliance (between £400 and £2,500 per day) will not please most small business owners.

Steve was able to talk through the minefield in such a way as to get the salient points across as well as providing vital contact information for people who can assist.

If you’ve never read any of Steve’s material – he is the only person ever to have made recommendations to a Goverment Department in cartoon strip format – or seen one of his presentations then I’d highly recommend you visit his website www.jargonfreepensions.co.uk or view the following clip:

http://www.youtube.com/watch?v=XYMe8xKVSjQ

In short, every professional who advises a corporate client should know about these changes and advise their clients accordingly.