Pensions pilot scheme - we need you to get involved
In conjunction with AgeWage, the CIPP are proud to launch an innovative pensions pilot scheme and we’re looking for 25 employers to volunteer to be involved from the outset. To thank you for volunteering, pension pioneers AgeWage will waive the normal initial fee of £7,500 + VAT, so participation for the first 25 employers will be free of charge.
The purpose of the scheme is to help employers and ultimately staff, to better understand their workplace pension, its performance and the steps they may need to put in place to help ensure a positive outcome for all.
Employers who take part will receive meaningful data about the value they, and their staff are getting from their workplace pension and it's hoped that this data will ultimately be shared with staff, in order to create a wider understanding and improved communication in an area that has historically been difficult to navigate for many.
How does it work?
By signing up to the pilot, employers will trigger a data request to pension providers to share contribution histories and individual pot values with AgeWage.
AgeWage will analyse the data, saver by saver, and then issue a report to each employer on the aggregate data. Since all data is anonymised, neither the employer nor AgeWage will be able to see individual employee details, however, where an employee makes a request, their data will be available under GDPR.
AgeWage has already analysed over 1m individual's pensions on behalf of insurers, master trusts and the governance committees and trustees of individual employers.
What will the report look like?
The innovative report will provide a score for each employer, which will allow them to see, from a score of 1 – 100, how much value their staff have got from their pension to date. The report allows employers to see these scores broken down by staff joining dates, age groups and will also produce an outlier report - showing records where data may be wrong.
Who is eligible to take part in the pilot?
To be eligible, the employer must have at least 300 employees in their workplace pension and that pension must have been with the same provider for at least three years.
The employer must agree to abide by the data collection process agreed between AgeWage and the CIPP and provide feedback to the CIPP on the output of AgeWage's work and on the ease of use of the data collection process.
Future plans, education and legalities
If the pilot is considered successful, the scheme will be rolled out to a wider group of employers.
We would like the scoring system, pioneered by AgeWage, to become integrated into employer's financial education programs.
AgeWage is currently testing a way to transmit individual scores to members in a safe way. The scores are very simple and emotive, telling people how they have done. These scores could be construed as advice, especially when viewed by staff alongside scores for other pensions. AgeWage has been asked by the FCA to trial the distribution of scores to around 350 individuals in the FCA's Sandbox (part of its innovation hub).
Once the FCA and AgeWage are satisfied that distributing scores to members is both safe and worthwhile, the CIPP and AgeWage will work out how best these scores can be distributed to staff. Suggestions so far have focused on pension statements, payslips and digital mail drops. Offering the scores digitally will enable a click-through to an educational app reinforcing existing messaging and introducing next steps to staff looking to turn pension pots into retirement plans.
Getting an AgeWage report is an easy process. Simply follow the steps below:
Press the get started link above or below and you'll receive a call back within 24 hours from Henry Tapper or Aron Maus of AgeWage, who'll answer your questions and help you to move onto step 2.
Send a data request to the operator of your workplace pension requesting data in the AgeWage format (AgeWage will supply templates and ensure all privacy agreements and data security protocols are in place).
Sit back and await your report which you can share with your colleagues.
There are no fees, no obligation and no hard sell on financial well-being. Just the chance to be a part of an innovative pilot scheme, that could change the future of pensions reporting.