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Changing government legislation around childcare vouchers and pension annuities is forcing some employee benefits providers to rethink their service proposition, making it difficult for employers to identify their area of specialism. Ian Hodson, reward and benefits manager at the University of Lincoln and one of five participants in the debate, said he expected to see more benefits providers reposition themselves because of changing government legislation.
In his Budget speech in March, Chancellor George Osborne announced his decision to abolish the legal requirement for defined contribution DC pension scheme members to convert their retirement pot into an annuity at retirement , prompting much speculation about the future of annuity providers.
Attendees at the roundtable debate said the increasing number of new market entrants, particularly in the health and wellbeing sector, is complicating the task of appointing providers most closely aligned to their organisational and workforce needs. But Louise Wesley, director of operations at Busy Bees Benefits, says the repositioning trend is an inevitable evolution of the benefits market that is being fuelled by employer demand.
Busy Bees repositioned itself as a benefits provider and relaunched as Busy Bees Benefits in after selling its childcare voucher business, Busy Bees Childcare Vouchers, to Computershare Voucher Services in It now offers bikes for work, car leasing, will writing and retail vouchers, as well as childcare vouchers. Cotton doubts that any benefits provider would risk offering a benefit that its technology systems could not cope with.