Group Pension Scheme
We can offer guidance to both employer and employee on the various issues concerning pension scheme planning and the costs involved.
Currently, the most popular scheme being used is a Group Stakeholder Pension arrangement. This type of scheme provides the employer with limited liability – unlike schemes where the employer guarantees an income in retirement; this scheme provides an income based on the size of the contribution and the underlying investment performance.
A Group Stakeholder Pension is a low cost arrangement offered mainly by Insurance Companies. Please refer to the Stakeholder factsheet for further information.
Employer Pension Schemes will certainly become a hot topic in near future when a new pension scheme is introduced. The new scheme will be known as a Personal Account. Because of the failure of previous legislation concerning pension schemes, Personal Accounts will involve automatic membership. It has been suggested that a 3% employer contribution will also be compulsory.
These plans are in the early stages of design, but we can anticipate their launch in April 2012.
