Legislation has proved to be most burdensome for employers running some occupational pension schemes. This, along with the need to provide further flexibility and portability, has ensured the success of group personal pensions.
Since October 2001 it has become an obligation of all companies with 5 or more employees to offer a group stakeholder personal pension scheme to its employees unless they already have in place an occupational pension scheme or a group personal pension scheme.
By operating a Group Pension Scheme which was often an administrative nightmare for the company running a company sponsored scheme (a company trustee based scheme), it can instead be the responsibility of the insurance company (a contract based scheme), to bear the responsibility and administrative burden of running the scheme, leaving the directors free to carry out their normal daily business activities.
Group Pension Schemes can be individually designed on a tiered contribution basis to reflect seniority or loyalty within an organisation
Ancillary benefits can be added to cover long term illness and provide financial protection to dependants. The recognition that State benefits are inadequate for many people; that employees expect pension benefits as part of their remuneration package and that pensions are a tax effective means of rewarding loyal staff, could mean that group personal pensions would be an excellent option for the small to medium size company.
We have considerable experience in the group scheme market, including the design of individually tailored employee benefit packages. Please contact us for further details.
Group Pensions
