Payroll – the heartbeat of workplace pensions

Since the dawn of automatic enrolment (AE), payroll has become the beating heart of workplace pensions – and it’s time the pension industry gave it the recognition it deserves.

When I started working in the pension industry, admin staff would input everything manually, from new scheme applications to new member sign-ups and monthly contributions. Today, two decades later (yikes!), such practices seem ridiculously outdated – now it all just runs at the click of a button…right?

Wrong.

With every UK employer now required to have a workplace pension scheme, pension admin has become more complex than ever– involving a continuous cycle of assessing the workforce, managing enrolment and opt-outs, and paying contributions.

Nowadays, it’s the responsibility of payroll to keep the whole system working, ensuring millions of employees are enrolled into their pension schemes, contributions are collected, and compliance is achieved .

I’ve been involved in initiatives that aim to navigate the grey space between payroll and pensions – proposing data standards and middleware solutions. Yet, I still find myself asking why the pension industry hasn’t done more to embrace the vital role payroll play.

Looking ahead, what changes can the pension sector make to truly put payroll at the heart of its processes?

Here is my three key point plan for how we – the pension industry at large – can and must do better in the future.

1. Add value to payroll providers’ propositions:
o By removing admin and setup fees for payroll bureau customers
o By adding benefits such as financial education tools and salary sacrifice implementation to the pension package
o By enabling you to offer your clients more than just a box-ticking pension scheme

2. Invest in payroll technology:
o By partnering with progressive payroll software companies to develop cutting edge solutions
o By driving higher standards of integration and collaboration between payroll software and pension providers
o By helping make truly modern, cloud-based payroll software affordable and accessible to the whole of the payroll bureau community

3. Treat payroll as a key business partner:
o By inviting payroll providers to the discussion table when setting our market strategies and developing products
o By using our voice to champion the crucial role that payroll plays in supporting workplace pensions
o By providing tools and resources tailored to the needs of payroll bureaus and their clients

Empowering payroll is key to empowering pensions

Automatic enrolment has forever changed the relationship between payroll and pensions, but we’re yet to realise its full potential.

If you’re a payroll provider reading this, it’s time to demand more from workplace pension providers.

For pension professionals like me, it’s time to step up further and recognise a key business partner that has been neglected by the industry for too long.

By working together, we can build stronger partnerships that help achieve better outcomes for payroll providers, pension providers, and, ultimately, our customers.

Meet the People’s Pension team at Accountex Summit Manchester on stand B7, taking place at Manchester Central on 23 September 2025.  

For further information, please visit www.accountexmanchester.com.

Book your free ticket here.

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