Title Page
Copyright
Contents
Acknowledgements 7
The Authors 8
Summary 9
1. Introduction 17
1.1. Background 17
1.2. Research aims and objectives 17
1.3. Research design and conduct 18
1.4. Sample design 19
1.5. Sample profile 21
1.6. Analysis of the findings 22
1.7. Content of the report 23
2. Overview of employer's cuire nt pension provision and profitability 25
2.1. Employer's current pension provision: population statistics 25
2.2. Provision among respondents in this survey 25
2.3. Employer contribution and employee participation rates 26
2.4. Reasons why small employers do, or do not, offer a pension scheme 27
2.5. Profitability performance over the previous five years 29
2.6. Expected performance over the coming five years 29
3. Awareness of the 2012 workplace pension reforms 31
3.1. Awareness of the 2012 reforms and the impact of the economic climate 31
3.2. Understanding of pension schemes 32
3.3. Expected opt-out rates among employees 33
3.4. Current levels of planning 34
4. Learning from previous legislation 35
4.1. Receiving in formation and advice about legislative change 36
4.2. Managing previous legislative change 36
4.3. Difficulties with managing previous legislative change 37
4.4. Implementing stakeholder pensions legislation 38
4.5. Managing the cost of previous legislative change 38
4.6. Reliance on outsourcing 39
4.7. Limited options 40
5. Implementing the 2012 workplace pension reforms 41
5.1. The expected administrative set-up process and costs 41
5.2. Managing automatic enrolment 43
5.2.1. Communicating with employees 43
5.2.2. Communicating with pension providers 44
5.2.3. Upgrading payroll systems (purchasing and installing new software) 44
5.3. Managing opt-outs 45
5.3.1. Dealing with employees 45
5.3.2. Communicating with pension scheme providers 45
5.4. Managing refunds 45
5.5. Obtaining advice 46
5.5.1. Sources of advice 46
5.5.2. Estimated cost of advice 47
5.6. Communicating with the Pensions Regulator 48
5.7. Ongoing administrative tasks 48
5.8. Managing the administrative costs 49
6. Managing the contribution costs of 2012 workplace pension reforms 51
6.1. The expected cost of pension scheme contributions 51
6.1.1. Economic scenarios 52
6.2. Managing the costs in a time of continued economic uncertainty 53
6.3. Managing the costs at the beginning of economic recovery 55
6.4. Managing the costs in a time of full economic recovery 56
6.5. The potential impact of phasing contributions 57
Appendies 59
Appendix A. Topic guides and show cards 59
Appendix B. Qualitative analysis using Matrix Mapping 83
Appendix C. Selected findings from the 2007 quantitative study into employers' existing pension arrangements and likely their reactions to the 2012 reforms 85
Table C.1. Employers' provision of and contribution to pensions, by size of organisation 85
Table C.2. Main reason for providing a pension, by size of organisation 86
Table C.3. Main reason for not providing a pension, by size of organisation 86
Table C.4. Administration of payroll, by size of organisation 87
Table C.5. Administration of pension scheme, by size of organisation 87