Aviva is the first GPP provider to come out and say it aims to be incorporated on The Pension Regulator’s approved auto-enrolment provider list.
GPP providers have typically shied away from offering terms to small, less profitable business and advisers see Aviva’s decision to come into the market as a significant turning point for the auto-enrolment sector as it rolls out to increasingly small businesses.
The GPP list mirrors the existing master trust provider list, which includes seven schemes that have received accreditation from the ICAEW/TPR master trust assurance framework. Several of these providers levy an onboarding charge on employers joining the scheme.
Master Adviser partner Roy McLoughlin says the arrival of GPP providers into the small and micro sector will be welcomed by advisers who are increasingly seeing employers for who the only option was likely to have been Nest.
Aviva MD of business solutions Andy Beswick says: “I’m delighted that The Pension Regulator will shortly be listing individual group personal pensions providers who are in the automatic-enrolment market on their ‘Choose a Workplace Pension Provider’ webpage. This is often the first place that small business owners come to for information about their auto-enrolment responsibilities and it is important that there are details of all their available options.
“Aviva intends to apply to be featured in the list as we can help businesses of all sizes, no matter how small, to set up their workplace pension. We therefore very much welcome this decision by The Pensions Regulator”
A spokesperson for Aegon says: “Aegon’s workplace pensions are sold through financial advisers who are best able to determine the needs of an employer and their staff. The TPR criteria are designed for employers who do not wish to take advice on the scheme they are selecting and as a result, we do not intend to put ourselves forward for the list.”