AEGON today announces it has signed a ‘letter of understanding' with NEST Corporation to provide integrated auto-enrolment support for employers.
AEGON is the first provider to reach agreement with NEST Corporation and formalise its approach in this way.
The letter of understanding outlines how AEGON and NEST Corporation will work together to provide a combined solution for employers who want to run an AEGON scheme alongside the NEST scheme. AEGON believes this ‘dual scheme' approach will appeal to many new and existing corporate clients.
AEGON and NEST Corporation have agreed to work together on four key areas to provide a joined up auto-enrolment approach for employers and their employees:
Integrating the auto-enrolment processes, including re-enrolment, and centralising the calculation and transmission of contribution information for all employees. AEGON's auto-enrolment hub will facilitate these processes
An agreed strategy for delivering communications where both parties are providing auto-enrolment solutions
Preparing joint approaches and bids to corporate customers. This may include preparing joint tender material and customer-facing documents
Regular review of agreed processes and joint activity to ensure the business relationship continues to develop to meet clients' ongoing needs
The agreement with NEST follows the announcement in February that AEGON has chosen leading business and technology company Logica to support the delivery of its online auto-enrolment "hub". The hub will be a core component of AEGON's pension reform proposition for new and existing customers.
Paul McMahon, AEGON UK Group Marketing Director, says:
"It's in everyone's interests to make auto-enrolment a success. We're delighted to have reached an agreement with NEST Corporation to offer an integrated solution where it's in the best interests of our customers to do so. This joined up approach will be an important part of our overall pensions reform proposition and we believe it will be attractive to many new and existing corporate customers.
"The NEST scheme will be fully supported through our auto-enrolment hub to centralise the calculation and transmission of contribution information, employee opt outs and automatic re-enrolment. We believe this dual scheme approach and our close working relationship with NEST will reduce the administrative headache for employers and help them engage with a broad spectrum of employees to get them planning for retirement."
Tim Jones, NEST CEO says:
"Many large employers currently getting to grips with automatic enrolment are coming to the conclusion that they want different schemes for different groups of staff. NEST has been built to work alongside existing provision and is specially designed for its target market of people new to pension saving and their employers. We are very pleased to be working with AEGON as one of our partner providers."
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