How do Stakeholder Pensions impact on me as an employer?

The Government is committed to ensuring that employers make available access for their employees to 'good quality' pension provision. This might take the form of an occupational pension scheme or a group personal pension scheme into which the employer contributes.

Where an employer offers such an arrangement, they may be exempt from also having to provide employee access to a stakeholder pension scheme. Professional advice should be taken to help determine whether an existing scheme qualifies the employer for an exemption and if not the steps that could be taken in order to do so.

Where an exemption is not otherwise obtained, since 8th October 2001 all employers with five or more employees have to provide access to a stakeholder pension.

Whilst neither employer nor employee contributions are compulsory at this stage, it is a legal requirement that employers must have in place the facility to enable their employees to contribute to a stakeholder scheme.

This will involve the designation by the employer of their chosen stakeholder provider and failure to comply with this requirement risks the employer facing a fine from the Occupational Pensions Regulatory Authority (OPRA).

Further details can be obtained by e-mail bectu@bbgroup.co.uk or by ringing 0845 634 2010 (local rate call in the UK).