Part of the proposal for Personal Accounts in 2012, is that members will automatically be enroled in a pension plan.
Statistics show that auto enrolment will have a significant impact on the membership take-up rates (see below).
Take-up rate using different communication methods (1)
(1) Source: Standard Life 凡 based on typical experience of approaches at 31 December 2006. Industry Standard is shown when Standard Life are currently monitoring response rates. *
While Standard Life will welcome this development, one implication is that unless scheme members are educated on the benefits then it can be many years before they look at investment choice or payment levels. We believe it is therefore essential that an education programme is implemented alongside auto enrolment.
Standard Life is increasing the size of its Employee Communications team by 50% to enable it to deliver an increased focus on communications programmes to employers during 2007 and beyond. Boosting the team will enable us to provide both new and existing corporate pension clients with an increased focus on communication and education programmes for their employees.
Greg Thorley, Employee Communications Development Manager
Greg Thorley, Employee Communications Development Manager, Standard Life said:
“We delivered over 1300 seminars in 2006 among our corporate pensions clients. A larger team will enable us to deliver an even more focussed and varied communication programme.
We need to find innovative ways of educating employees so that they fully appreciate the value of their employee sponsored benefits, and can also make informed choices with regard to how their pensions are managed.
One probable implication of Personal Accounts is that auto enrolment will become a feature of all Occupational arrangements.
Technology will also play a key part in the delivery of an enhanced communication and education programme, using bespoke websites and webcasts to encourage employees to take an active part in their retirement planning.
This increase in our Employee Communications team will place us in an ideal position to deal with both the more sophisticated communication requirements that we face today, as well as the increases in membership take-up in the run up to 2012.”
Contact your Standard Life account manager to find out more about how we can help you increase group scheme take-up.
No guarantees are given regarding the effectiveness of any arrangements entered into on the basis of these comments. This is based on our current understanding of personal accounts.
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