This is a letter template to be used by the employer. Theletter is an offer from the employer to the employee and can be used in the following scenarios:
–moving from another provider’s QWPS to a Standard Life QWPS
–moving from an existing Standard Life QWPS to a new Standard Life QWPS
The letter specifically covers entitled workers who are in the existing QWPS, who will need to ask to join the new QWPS, as opposed to being automatically moved over.
We have proposed a pragmatic approach to communications which signposts employees to the relevant information. However it is your responsibility to ensure that you give employees the information required by the Pensions Act 2008. Detailed guidance can be found here:
The paragraphs highlighted indicate the mandatory information that you need to communicate with your employees.
NAME & ADDRESS
<Date>
Dear [NAME]
Changes to your company pension.
We havereviewed our existing arrangements for employees, with help from our adviser <Insert advisor name>. Our new company pension is with Standard Life, and this is where future regular payments will be paid after <insert date>.
Why are these changes being made?
While the existing plan remains a suitable pension, we believe that the new plan is a better fit for our employees in terms of flexibility, investment choice and for the long-term[GC1].
How will the changes affect me?
You’re already in the existing plan however contributions to your existing plan will stop. We are inviting you to join the new plan, and, if you wish to accept this offer and restart contributions under the new plan,you must let us know by <contacting the HR Department on tel number/completing the enclosed joining form/ email to HR Department >[GC2]To help you decide if joining is best for you, please see ‘More Information’.
What will be paid into my new plan if I join?
Here is the payment structure for the new plan:
X[GC3]% / 0% / X%(min)
Where will payments be invested if I choose to join?
Regular payments will be invested in:
<Insert name of new default fund>
This is considered to be an appropriate choice for most people in the company pension. If you choose to join the new plan you can review, your investments and make changes to themonline. As with any investment the value of your fund can go up or down and may be worth less than you invested.
What do I need to do?
- If you want to join then please <contact the HR Department on Tel number/complete the enclosed joining form/ email HR Department@>[GC4]
- If you take no action then the value of your pension fund will remain in the existing plan. However, future contributions to your existing plan will stop.
If you join the new plan, Standard Life will send you more detailed plan information which you should read over.
More information
To learn more about your new company pension that you are being invited to join,please visit <insert url[GC5].
In particular, please read the Important Documents on this website so that you can decide if the new company pension is right for you.
Yours sincerely
<Name>
<Job title>
[GC1]Margin note for employer
If you have other specific reasons for changing your pension arrangements, and you feel are relevant to the employee, you may wish to provide more detail in this paragraph.
[GC2]Margin note for employer:
You must gather entitled members’ consent. It is up to you to decide the best method of capturing this information. Please amend the wording in the brackets to suit and delete as appropriate.
[GC3]
Margin note for employer:
If your company has more detailed structure then please adjust table to suit.
[GC4]Margin note for employer:
As per above note please amend the wording in the brackets to suit and delete as appropriate.
[GC5]Margin notefor employer:
Standard Life have different urls depending on the product and how it was sold.
If your new scheme was through an adviser and is a Group Flexible Retirement Plan (GFRP) then insert this url:
If you did not have an adviser, and is a GFRP, then insert this url:
If your new scheme is not a GFRP or it has been agreed as part of your service agreement, then you may be provided a more customised site. You should speak to your implementation manager or adviser who will confirm which site to refer to.