1. NAEA/ARLA MASTER TRUST
Master Trust Presentation
NAEA/ARLA MASTER TRUST
Presented by: Brian Schubert – Head of Marketing Communications NFoPP
Date: 8th October 2014

2. Firstly The Bad News
Robots will replace agents, predicts boffin. July 2014
Estate agents will be replaced by robots, claims Dr Carl Frey of Oxford University
Should estate agents be thinking of retraining, jobs that remain safe from robotic technology include acting, fire fighting and being a priest !!
But Auto-Enrolment Pensions? How would that work?
Coming to an Estate Agent near you soon!!

3. Caveat Goddard Perry Consulting (GPC) normally present:
Pensions Auto-Enrolment for members
NAEA and ARLA Master Trusts
This presentation should not be construed as offering financial advice
For financial advice please refer to an Independent Financial Advisor (IFA)
We would however, recommend you speak to Goddard Perry

4. Who are Goddard Perry ?
Leading independent pensions solutions providers
Developing Master Trusts since experts in this field
SALVUS centralised Master Trust scheme, compliant with Pensions Act 2008
Founder member of Master Trust Association
Goddard Perry contact details :

5. Background
Auto enrolment is being introduced to encourage people to take responsibility for their own retirement savings as:
Increasing longevity of life
Retreating state role
Under saving for retirement in general
Complexity of current pensions
Note: Basic state pension is currently £ per week

6. Why save? You need capital to generate retirement income
Age 32
State Pension Age 67
5% investment return
£25,000 salary assumed
2% rise in salaries
Contribution
Projected Fund
2% (1% & 1%)
£53,014
6% (3% & 3%)
£159,041
10% (5% & 5%)
£265,069

7. Company schemes At October 2013:
69% of companies with employees had no pension scheme
93% of companies with 1-5 employees had no pension scheme
Auto Enrolment: new employer duties
The Pensions Act 2008 Section (3)2
“The employer must make prescribed arrangements by which the jobholder becomes an active member of an automatic enrolment scheme”

8. What are the Employers’ duties ? Employers must.....
Have a qualifying pension scheme
Auto enrol some employees and
Enrol other employees into an “ Automatic Enrolment Scheme”
Pay contributions within 3 months of becoming eligible
Comply ! – there are daily fines by tPR if you don’t

9. Auto enrolment basic rules: for eligible jobholders
If you are 22 or over, earning more than £10,000 a year, you need to be enrolled into a scheme from the employers staging date
Minimum employee contributions will gradually increase to 4% of pay after tax, topped up with 1% tax relief by the government

10. Auto enrolment
The employer is required to “Enrol” all eligible jobholders
Eligible jobholders can then “Opt out” within 30 days if they do not wish to be in the your company pension scheme
If eligible jobholders “Opt out”, the employer has to re-enrol them again 3 years later
The Eligible jobholder again has the option to “Opt out”

11. Auto enrolment contributions
The minimum mandatory contributions from the Staging Date, if you are in the scheme, will be:
* Less tax relief
Employee pays *
Employers
From Staging Date
1 %
From 1st October 2017
3 %
2 %
From 1st October 2018
5 %

12. Auto enrolment issues
How to assess staff e.g. part time & commission employees ?
Practicalities of HR, Payroll & Pension Provider interfaces
Tracking & complying with Auto enrolment rules
Communicating with employees
Reporting to the Pensions Regulator
As per the letter from the Pensions Regulator – the letter states “there may be consequences if you do not comply including fines and/or prosecutions”.

13. Need to plan ! When is your staging date?
Who will be your pension provider?
How will you assess workers?
Access to AE “middleware” ?
Existing arrangements (if any !) may not work…your current provider may decline AE members and /or not provide “middleware”

14. The NAEA ARLA Master Trust Solution
A Master Trust for “non-associated” employers
NAEA/ARLA “Sub-Trust” for you to join
Guaranteed acceptance
Simple documentation
Corporate Trustee compliance & governance
A “one stop” shop solution
Member focused

15. Trustee that focuses on members needs..
Blake Morgan Pension Trustees Ltd is the Corporate Trustee
Trusteeship conducted by experienced pension professionals
Director appointed for ongoing supervision
Board meets once a month to review all cases.
Master risk register, which is reviewed at each meeting
tPR returns and tPR pension levy’s

16. Administration that focuses on the member…
All services from one location
HS Admin 100% owned by Goddard Perry Group
£2.5bn assets under management: £1m - £900m
Dedicated administrator for NAEA ARLA Master Trust
Over 60 staff 16

17. The member’s experience…
Member joining pack & fact-sheet
NAEA/ARLA helpdesk provided by HS Admin
NAEA/ARLA branded website - fund information & projection tools
Telephone opt-out service
Annual Statutory Money Purchase Illustrations (SMPIs) - issued as at 31st December
Transfers in - allowed
Transfers out - allowed (no penalty on transfer)
Full options at retirement - counseling service (GPC)

18. Strait Logics supply the “Assessment Tool”
Architecture
Auto Enrolment – Integration and work flow
Quality and Security

19. Auto Enrolment Technology
Staging Dates and re-enrolment
Management Information and Status
Payroll Reference Periods
Master Trust Pension
Contributions Levels
Data Upload
Assessment and Reporting
Communication

20. Investment via strength, value and flexibility for the member…
Conventional life-style available (DWP approved)
Equities when younger then Bonds/Fixed interest
BlackRock Aquila are fund investment managers
Daily dealing and free switching
Daily valuations for members with online access
Straight Through Processing (STP) 20

21. Default Investment Fund21

22. Charging structure A “bundled” charge is applied to cover:
Administration, AE Assessment, Trusteeship, Accounts, tPR levy & maintaining agreed investments and strategies
The charge for NAEA/ARLA is as follows:
Annual Management Charge (AMC) of 0.65% per annum
There are no member specific charges other than AMC

23. Key Messages of: the NAEA / ARLA Master Trust
Speed, simplicity and flexibility to adapt to your requirements
Full use of technology & AE Middleware at no extra cost
Competitive charges: 0.65% Annual Management Charge only
No extra charges for HS Admin to project manage take-on installation
Robust administration with over 25 Years experience
Guaranteed acceptance for NAEA/ARLA members
You will struggle to get a solution as good as this else where

24. What next ? As an employer doing nothing is not an option
Look through the NAEA/ARLA Master Trust brochure in your delegate pack to get a more detailed understanding
Call Goddard Perry to register your interest on
Consequences of non-compliance:
If 1,000 firms miss their 2014 staging date circa 75,000 employees miss out on entitlements
This becomes a nationally important issue with serious consequences

25. Don’t get it wrong - talk to Goddard Perry: 0151 448 5550
So - Pensions Auto Enrolment:
Don’t get it wrong - talk to Goddard Perry:

26. Thank You www.salvustrust.com MASTER TRUST TEAM
Steve Goddard -
Ken Ashton -
Graham Hickling -
Sanjay Shingadia -
Rob Clutton -
Brian Schubert -
Goddard Perry Consulting Ltd
Corinthian House
17 Lansdowne Road
Croydon
Surrey CR0 2BX T:
Abbreviations:
AE – Auto-Enrolment
AMC – Annual Management Charge
DB – Defined Benefit Scheme
DC – Defined Contribution Scheme
DWP – Department of Works and Pensions
GPC – Goddard Perry Consulting
IFC – Independent Financial Advisor
NEST – National Employment Savings Trust
PAYE – Pay As You Earn
SMPIs – Statutory Money Purchase Illustrations
STP – Straight Through Processing
tPR – The Pensions Regulator