At the heart of automatic enrolment, connecting payroll to pension providers

Will LovegroveCEO

The Pensions Regulator “AE Conference”July 2016

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The problem

We predicted in 2013 that manually processing pension datawould become a significant problem as more and more Employers staged.

We used this satirical video to emphasis our point & build important industry relationships

A new data supply chain

Payroll Pension provider

Automatic enrolment is creating a new “pension data supply chain”principally between payroll and pension providers.

This new supply chain is being operated “manually” by payroll bureaus and payroll departments.

We believe software can help relieve the manual burden.

The opportunity

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We are now establishedand have formed commercial relationships

with these payroll companies or their Bureaus, and business partnerships with these pension providers.

Software hides complexity

Payroll Pension providerAE ‘module’

API data transfer

Scheme &

Data tools

Many payroll systems now have AE features, free, or as an optional module.Some of the larger payroll systems have API data transfer in place with NEST

Only pensionsync is operational with 4 providers, increasing to 6 by end of 2016pensionsync provides sophisticated tools and monitoring-dashboards

that help Bureaus set-up new schemes and also monitor every step of the data transfer process (between payroll software and pension provider, and vice versa)

Predictions for the futurePrediction for TPR

Your role will become more important as 1.8m Employers stage.New technology (such as APIs) is an opportunity to get more accurate & up to date information on Employer’s schemes.It could be the best way to achieve this is to adopt new emerging technology, or become part of the new pension data supply chain.

Prediction for Pension ProvidersNew technology is an opportunity to increase member engagement (as well as lower cost of working with Employers).API technology has a role to play in the Pension Dashboard. APIs can take data to where the member is already engaged, such as Payroll/Payslips (rather than ask the member to come and engage with Providers, or a Public Service Dashboard)

Concept payslip

The car industry has “concept cars”I have “concept payslips”.

An insurance company challengedme to give an example of howpension data could travel to where members are already engaged.

This is my payslip of the future.(It is actually my current payslip, but I’ve doctored the numbers)

In my opinion, the place where an Employee is told that a deduction has been made is the perfect place to tell the Employee where their money has gone to

It is also the perfect place to display other “pots”. And the place where the Employer can display a simple message of “how to get financial advice”

Thank you