Group Personal Pensions - GPP

Where the business offers a Group Personal Pension (GPP), you must:

  • Offer membership of the scheme to all employees aged at least 18. This applies to all staff who have been employed by you for at least three months and includes part-time and any contract/temporary staff;
  • Document the offer of membership and the contribution basis with each employee;
  • Ensure the scheme does not impose penalties if the employee decides to stop contributing or transfers out of the scheme;
  • Pay employer contributions to the GPP for each employee, of at least 3% of basic earnings. These contributions can be conditional on the employees contributing up to 3% of their basic pay.*

* If a GPP was set up before 8th October 2001 where you have insisted that matching employer/employee contributions are higher than 3%, this can continue, however all the other criteria must be satisfied.