Take control of your pension costs
A missed or incorrect salary payment is often noticed immediately. Unfortunately, the same is not true of pension contributions. Even though they represent the employee’s future income. As an employer, you have a far-reaching responsibility to get this right. So it is an important issue to keep track of.
Occupational pension administration can be handled in several ways. You can manage it internally, with one or more people who can take responsibility for getting it right through their expertise and in-house systems, or bring in external help in the form of specialist expertise and automated, quality-assured systems.
Different solutions for reliable pension administration
If you bring in an experienced consultant or handle the work internally, there is a risk of becoming dependent on one person. Expertise is often built up over time, and when a particular person handles the work, that expertise resides with them. Organisational changes or the end of an employment or consultancy arrangement therefore carry the risk of that expertise leaving the business.
This can, of course, be addressed by involving more people in the work. But some dependence on individuals will remain.
With an external provider, you can ensure that organisational changes or departures do not affect day-to-day operations. And that important information about how pensions are administered does not fall through the cracks.
Expertise and knowledge provide peace of mind
A major challenge in occupational pension administration is its considerable complexity. You usually need to take account of different collective agreements, pension policies and several providers, including insurance companies, advisers or other partners offering different reporting and calculation solutions.
Building an understanding of how everything fits together and interacts takes time, and it is also important to keep that knowledge up to date. Not least because regulations and collective agreements change.
Many mistakes arise from a lack of knowledge of regulations, incorrect calculations or a general lack of understanding of how occupational pensions and insurance should be administered correctly. Our reviews have shown that around one in five employees has incorrect insurance cover. Something that can be avoided if you have a controlled and reliable reporting and administration process.
It is understandable that things can go wrong from time to time. But what matters is having a process to ensure that mistakes are noticed immediately, and procedures to ensure everything is handled correctly from start to finish.
Reliable administration that frees up time and resources
By working with a partner with specialist expertise, you can get help to ensure that reporting and discrepancies are checked and that costs are in line with expectations.
Having control over occupational pensions is not just about ensuring accurate reporting. It also means checking and following up insurers’ premium invoices, keeping accurate accounts, tracking tax deduction limits and tax rates, and, of course, being able to analyse and forecast. Tasks that require specialist expertise and supporting systems, and that are time-consuming for an in-house member of staff.
To keep your pension costs under control while freeing up time and resources internally, it is important to find a partner who understands your needs and has expertise in occupational pensions. Bringing in external help can improve efficiency, reduce risks and provide quality assurance that your employees receive the correct pension contributions and insurance cover.
Let us show you how we can best help you
Do you need to review your occupational pension and insurance administration? Or simply hear how you can make the work more efficient and ensure everything is done correctly?
Contact us for a brief discussion and we will tell you more about how it works and how we can help.
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