Small and micro firms get own AE software

The brainchild of Steve Bee, former head of pensions strategy at Scottish Life, the product is named Jargon Free Pensions Compliance and is being charged at a basic 50p per day.

The solution will be sold to firms of less than 50 employees through a national network of 100 IFAs.

Some of these IFAs in turn are expected to sell on the software to accountants, which is expected to be the key source of professional business advice for firms with fewer than 10 employees.

Research commissioned by the Pensions Regulator last year found that 40 per cent of small employers were expected to seek advice from their accountants on auto-enrolment.

Bee, currently director of Paradigm Pensions, which runs the Jargon Free brand, said: “The regulator has always said the route to this market is through accountants.”

He added, a lot of firms will do what their accountant tells them and that employers he had met were keen on complying with legislation.

The product is based on Staffcare software and, says Bee, will act as middleware between firms’ payroll providers and pension providers.

It will also contain documents and letters that can be easily printed and returned to advisers.

The only pension providers catering for this end of the market are the National Employment Savings Trust, Now Pensions and The People’s Pension.

Firms of under 50 employees start auto-enrolment in June 2015, but the product is being launched now to help advisers plan ahead.

Sean McSweeney, principal consultant at AWD Chase de Vere, backed the product but warned: “Many providers have ‘bundled up’ middleware and other compliance tools within their auto-enrolment propositions, which may meet the employers requirements.

“Although JFB’s proposition is low cost, SMEs need to work with their advisers to ensure this additional spend provides sufficient return.”