The National Employment Savings Trust and Aegon have signed a formal agreement to offer an integrated auto-enrolment proposition.
Aegon are the first company to sign a ‘letter of understanding' with the trust, outlining how the arrangement, which will enable employers to offer schemes from both providers, will work.
The deal will see the two firms collaborate on administration, communications and tendering for business, and will be regularly reviewed.
The administration system, which will include auto-enrolment and re-enrolment processes, employee opt-outs and contribution calculations, will be based on Aegon's auto-enrolment hub.
Aegon UK group marketing director Paul McMahon said the dual scheme approach would an important part of the firm's overall pensions offering.
"We believe this dual scheme approach and our close working relationship with NEST will reduce the administrative headache for employers and help them engage with a broad spectrum of employees to get them planning for retirement," he said.
NEST chief executive Tim Jones (pictured) said: "Many large employers currently getting to grips with automatic enrolment are coming to the conclusion that they want different schemes for different groups of staff. NEST has been built to work alongside existing provision and is specially designed for its target market of people new to pension saving and their employers."
The agreement follows similar tie-ups between NEST, which will target lower earners who are new to pensions saving, and other providers.
These providers include Standard Life, and Aviva which will provide the top up scheme for NEST's workforce.
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