The Pensions Regulator has issued a series of guides that will help advisers, employers and pension professionals with all aspects of choosing, setting up and enrolling workers into auto-enrolment pension schemes.
One key thing to note is to make sure service levels and processes at the new provider are absolutely spot-on to cope with the changes to contribution levels, and that employers are set up to communicate effectively to staff not just the details of the new provider, but also the details of rising contributions.
Figure 1 shows the rise in contribution levels (Source: Nest).
Jason Green, head of workplace research for F&TRC, says: "Advisers must fully understand why they are switching and identify the benefits.
"These should be benefits to the members as achieving good member outcomes should be at the core of all decisions that are made."
Compliance and tax
Another thing advisers should consider if they do believe switching will be in the scheme member's best interests is to ensure the new provider has the best functionality and continuity of compliance.
Mr Jones explains: "If switches are to proceed, it will be best to let the future provider ensure continuity of auto-enrolment compliance."
It is also worth checking what sort of minimum and maximum contribution levels a scheme is set up to do if advisers are to advocate switching between schemes.
For example, in April, NEST's maximum contribution cap will be lifted allowing members to contribute the full annual allowance of £40,000 a year.
In addition, NEST will open its doors for the first time to transfers in with a 0.3 per cent annual charge.
This will give greater flexibility and help for people who are intending to save as much as possible for their retirement.
While many schemes do allow members to invest the full allowance, advisers will have to make sure employers and employees are not exposing some larger pension pots to any inheritance tax (IHT) liability.
Graham Peacock, managing director of Salvus Master Trust, comments: "It is important advisers make the best recommendations for their clients by being aware of discrepancies between schemes that may mean members become liable to IHT, for example."
However, with the current contribution rates for auto-enrolment (2 per cent on a band of earnings) IHT is unlikely to be a consideration for most workers on average earnings unless they have significant previous pension savings they would want to transfer.
Data systems
The need for ensuring data is fully protected and up to date is also something that advisers and trustees should consider, according to Claire Montgomery, senior business analyst for Trafalgar House.
