Corporate Client Agreement

Company Pension Scheme Provision

Between XXXXXX and XXXXXX

WORKPLACE PENSION SCHEME AUTO ENROLMENT OVERVIEW

Following our initial discussions with you we want to provide you with an overview of the services and their cost implications. This document has been written to highlight the processes and detail required with obtaining Pension Scheme Auto Enrolment compliance and your agreement to proceed is required before further work starts to attract costs.

Auto Enrolment is regulated by the Pensions Regulator whilst all financial planners, including pension specialists, are regulated by the Financial Conduct Authority. These layers of regulation are designed to protect the client and ensure exacting standards of advice and service.

This documents sets out the agreement between us, the cost of services in monetary terms and the basis of these calculations.

PROPOSED SERVICE LEVELS - PENSION SCHEME AUTO ENROLMENT

We agree the level of service is to provide is all of the following:

  1. Fact Finding
  • Discussions regarding -
  • the objectives and aims of this process
  • impact of auto-enrolment obligations and qualifying scheme requirements
  • Establish -
  • staging date
  • budget available
  • level of benefits the employer wishes to provide
  • Generic advice regarding -
  • typical pension benefit structures
  • the setting of pension contribution levels
  • enrolment procedures
  • Obtain data on the membership to be covered
  1. Research and Report - Provider Selection
  • Research the full market to determine appropriate providers for your pension scheme requirements. It should be highlighted that a preferred provider may not automatically accept the company scheme. At which point all reasonable efforts will be made to secure a scheme place with a preferred provider and failing than appropriate alternatives will be sort.
  • Prepare a report covering -
  • providers considered
  • reasons for selection of provider(s), payment methods, charges and details of investment funds available
  • default funds to be offered and any reasons for their selection including life styling options and target date fund options
  • options with regard to employee advice
  • remuneration options and impact on terms
  1. Employer Meeting
  • Meeting to discuss –
  • the report and recommendations and agree way forward
  • any further predicted impact of auto-enrolment based upon the company fact find and pension scheme selection information
  • Agree -
  • the details of the scheme design including contribution rates for employees and employer, and eligibility terms
  • the extent to which the employer wishes members to receive individual advice and how the cost of this is to be covered
  • start date of scheme
  • establishment of Governance Committee and its terms of reference
  • timetable for review meetings to cover initial establishment and then future operation
  • remuneration and method of payment
  • Review draft communications and agree time to issue
  • Provide support and advice on existing pension schemes
  1. Member Communications
  • Prepare –
  • announcement to all potential scheme members explaining scheme in simple terms and benefits of joining
  • notes on scheme fund choices available and their risk profiles
  • “Scheme Booklet”, providing more details of scheme, and choices available and generic illustrations of potential benefits
  • Establish a member helpline or appropriate support point of contact
  • Where possible arrange seminar presentations to introduce the pension scheme and any other benefits and give opportunity for questions
  • Provide details of –
  • online support and how to access this
  • default fund or funds and attributes of these funds and how they have been selected
  • Confirm what can and cannot be done online
  1. Implementation of Pension Scheme
  • Arrange meeting between provider and employer to ensure all administration procedures clear and understood
  • Collate and schedule information from member application forms to pass to employer and provider
  • Ensure initial premium collection works smoothly and procedure in place for efficient processing of all subsequent premium collections
  • Agree procedures for subsequent entrants – provide a list of potential new members each month so that they can be sent pension scheme details
  • Meet with Payroll and provide training
  • Default fund and scheme favourite set up and governance
  1. Review Meetings
  • Agree timetable for regular review meetings at appropriate intervals to check that all agreed aspects are performing as they should plus a review any issues
  • Ensure that all parties are happy with efficiency of administration and consider any potential improvements
  • Attend and minute Governance Committee meetings
  • Provide regular management information
  1. Ongoing Help and Support
  • Maintain helpline or management point of contact so members can raise any queries that they may have and these can be resolved efficiently

COMMERCIALS

You have agree to our remuneration of £XXX for the services required to set up your company with an Auto Enrolment compliant pension scheme. This fee includes all aspects of preparation, training and support outlined above. Unless otherwise agreed in writing all fees become payable at the point the scheme is established.

AGREEMENT

Please confirm you understand the scope of this agreement. Any questions or areas of uncertainty will happily be explained before further work is committed to:

Signature:

Name:Date:

Position:For and on behalf of: