Defaqto has launched a new guide to reviewing workplace pensions.

The CPD-accredited guide, in conjunction with Aviva, is aimed at reviewing all existing workplace pensions.

Defaqto found that with many employers now realising they can change their pension provider to avoid frustrations or save time and money, they are “seeing the secondary market bursting into life.”

Auto-enrolment legislation contains allowances that can result in certain groups of employees being excluded, these are highlighted in the guide alongside other “pitfalls to avoid.”

The guide is designed to help advisers identify triggers for change, re-evaluate the “suitability” of the existing workplace pension scheme, identify “good governance” and evidence value for money.

It also looks at what is driving this market growth and how advisers can take an active and compliant role within it.

With more than 70 retail workplace pension schemes to choose from, there is no shortage of options.

Therefore, the guide also warns of the dangers, including recommending indirect discrimination as defined by the Equality Act 2010.

An employer can justify indirect discrimination if they can show that the provision, criterion or practice put in place is a proportionate means of achieving a legitimate aim.

In the guide Defaqto suggests advisers should highlight to their employer clients if they are operating indirect discrimination and document the appropriate strategy in achieving a legitimate aim.

The guide also includes a one page checklist to help guide advisers through the evaluation process and evidence the suitability of their advice.

David Cartwright, head of insight for Wealth and Protection at Defaqto, said: “While cost and service are common triggers for the workplace pensions to be reviewed, every employer must go through a three yearly re-enrolment process, and this creates the perfect opportunity for advisers to help their employer clients.”

“Some of the best practice guidance we detail within this document is also proposed for future legislation updates by the Department for Work and Pensions (DWPs) in their report on auto-enrolment dated 18 December 2017.”