But - only 4% will use NEST
A recent poll by Xafinity of HR, payroll and pensions professionals has revealed that 35% have not yet selected which pension vehicle they will use for auto-enrolment.
47% of respondents said they will be using their existing arrangement or a new arrangement (13%). However, almost all of the respondents rejected NEST as an option, with only 4% stating that they will use NEST in conjunction with another vehicle.
The survey also found that over 40% of respondents' payroll and HR systems either can't address the increased categorisation of individuals and maintenance of audit trails required for auto-enrolment or they don't know if it is possible.
In terms of legislation and regulation affecting auto-enrolment, 47% of respondents stated that they had not considered the impact of the Data Protection Act, TUPE or equality legislation on their auto-enrolment
strategy. Additionally, 96% have either not yet (86%), or have no plans at all (10%), to review the flexible benefit and/ or salary sacrifice arrangements to ensure they do not breach the auto-enrolment regulations.
Ken Anderson, Head of DC Solutions at Xafinity commented: "The results reveal that many companies are still undecided about their preferred option for auto-enrolment. With many companies just a few months away from its implementation, this is now a cause for real concern as the survey also highlighted that 40% of companies were unsure as to whether their existing payroll and HR system could manage auto-enrolment, or considered that it definitely couldn't."
About the research
The research was completed by over 50 HR, payroll and pensions professionals in May 2012, who registered for Xafinity's conference, 'Auto-enrolment - It's complicated'. The 22 May conference looked at how businesses will be impacted by auto-enrolment. It focused on increasing the value that employees place on their pensions and broader benefits, thus maximising return on investment.
Keynote speakers included Steve Webb MP, Minister of State for Pensions; Dr Ros Altmann, Director General of Saga; Alan Pickering, Government Adviser; and Charles Cotton from the Chartered Institute of Personnel and Development.
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