Communications and pensions

The need for communication
The need for communication

In response to NAPF research, larger employers who had already begun the AE process suggested there was a link between good communications and low opt-out rates. Employees knew what was happening and were expecting to see the money taken out of their pay packets. Good communications can reduce costs for employers. A major concern of several of the research interviewees was that considerable resources would have to be diverted to answer queries about AE. Clear communications are an effective way of addressing those questions early and reducing the number of people needed on a helpline.

Communications have to be done in prescribed formats and signposting employees to information on a website or a poster in the workplace is not allowed. Employers must give their employees “written” information, which means paper or email, and they can choose to give each employee a hard copy, delivered by hand or in the post, or send an email to the employee’s email address. Separate communications may be needed for each scheme and if you use different types of schemes there may be additional requirements.

Tomorrow, we take a look at how AE will impact your employees…