We're making some changes to our Talisman Group Pension Scheme (GPS)

You’ll be aware that there is a drive from the Government and Regulatory bodies to ensure auto enrolment is a huge success. This drive has created a focus on legacy products and their suitability as a vehicle for auto enrolment.

In March 2014 the Government announced a range of measures designed to improve the quality of workplace pensions.

These proposals mean that unfortunately, from April 2015, when they came into force, our Talisman GPS does not meet the new criteria for an auto enrolment scheme or a qualifying scheme.

We'd already taken the decision to not update GPS to allow it to be used as an auto enrolment scheme but we had been allowing it to be used as a qualifying scheme for existing members. However, due to further changes by the Government, since April 2015 GPS can no longer be used as a qualifying scheme, regardless of the contribution levels being paid into it.

This position has implications for:

  • Employers who've already reached their auto enrolment staging date and have been using their GPS as a qualifying scheme, and
  • Employers that are yet to reach their auto enrolment staging date.

In both circumstances they'll need to ensure that their employer duties are met for the existing members of the GPS who are still employees, as well as any other employees.

Our solution for auto enrolment

To help these employers meet their employer duties for auto enrolment we'll be offering them all a Retirement Solutions plan, where they don't already have one. If they already have a Retirement Solutions plan, they can use it for auto enrolment instead. This can accommodate existing GPS members who are still employees and any other employees who are being auto enrolled into, or wish to join, the Retirement Solutions plan.

You'll no doubt be in contact with your GPS clients as a result of this change, so we want to make sure that you have all the information you need at your fingertips.

Communications to adviser and employers

If you have any clients with a GPS who have an auto enrolment staging date in January 2015 or later, we'll email you and your client(s) six months before their auto enrolment staging date to make you aware of how the changes affect the plan and what you need to do.

We've also posted information online for employers.

If you have any clients with a GPS who had an auto enrolment staging date before January 2015, we emailed you and your client in October 2014 to confirm the position with their GPS and the options available to them.

What happens next?

  1. You need to contact our Retirement Solutions Staging team with the answers to the questions in the email we've sent you.
  2. Our Retirement Solutions Staging Team will then be in touch with all the information you need.
  3. If your client wants to open a new Retirement Solutions plan (or use an existing one) to satisfy their auto enrolment employer duties for existing GPS members and any other employees our Retirement Solutions Staging Team will then ask you to complete the necessary documentation.
  4. One of our Implementation Managers will then take you and your client through the rest of the process ahead of the staging date.
  5. If your client chooses to use a Retirement Solutions plan for auto enrolment the Retirement Solutions Staging Team/Charge Cap Team will also issue a letter to each of the members of their GPS.

Supporting documents

We've got a range of support material to help you guide your clients through the three key decisions they need to make if they want to open a new Retirement Solutions plan to satisfy their auto enrolment pension scheme:

  1. Our contributions support provides you with a range of material to help you understand the options available and make confident recommendations to your client.
  2. Default investment guide This outlines the default investment options we have available and the attaching responsibilities.
  3. Auto enrolment system factsheet This is for you to use with your client to help them decide whether or not to use our auto enrolment system. It sets out the key features our system has to offer and also covers some of the things your client will need to think about if they decide to use an alternative system.

More information

Last updated: 17 Apr 2018

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.