ACEVO launches member pension scheme

The Association of Chief Executives of Voluntary Organisations (ACEVO) has launched a pension scheme for its members, to support them through the upcoming legislative changes.

In partnership with national financial advisory firm, Foster Denovo, ACEVO has negotiated the competitively priced scheme with leading pension provider, AEGON.

Louise Smith, director of finance and operations, at ACEVO, said: “We’re pleased to be launching the ACEVO Member Pension scheme in conjunction with Foster Denovo, and believe it provides a truly competitive offering for our third sector membership.

"In particular, we believe this will benefit smaller third sector employers who may not otherwise be able to access such a competitive pension scheme for their workforce.

“In line with the upcoming legislative changes, we are now urging those employers who already have existing pension arrangements in place to review these, and to see whether better value and increased flexibility can be achieved through this new pension scheme.”

Ian Bird, equity partner at Foster Denovo, added: “The pensions landscape is currently undergoing a period of significant change, and the introduction of pension reform from October 2012 means that, for the first time, employers will have to offer a workplace pension and contribute towards eligible employees pensions.

“Early planning around the pension reform is vital. In the latest ACEVO Pensions Survey (January 2012), we revealed that nearly one third of members (31 per cent) are still to consider the strategy they will adopt in readiness for the 2012 pension reform, and one fifth (20 per cent) do not have any kind of pension scheme in place.

"The cost implications for some employers could be significant and should not be underestimated.”

The charging structure of the scheme will significantly undercut the standard one per cent Annual Management Charge (AMC), enabling ACEVO to offer a pension with a leading provider at a reduced cost.

Paul McMahon, UK group marketing director at AEGON, said: “We are pleased to be able to support ACEVO with preparing for its new pension responsibilities.

"Automatic enrolment is one of the biggest opportunities for employers, pension providers and advisers to work together to boost the level of workplace pension saving in the UK. Getting the right scheme in place will be essential if employers are to help their employees benefit from effective retirement planning.”

ACEVO members, across the board, will also be provided with access to financial advice and support from Foster Denovo – helping them to get pension reform ready.