Employer Pensions - Your Options if your not exempt from Stakeholder

Designate a Stakeholder scheme now - You may consider setting up a Stakeholder scheme to fulfill your obligations. We have tried to highlight some of the main points to consider:

  • As an employer you don't have to contribute if you don't want to.
  • Offering a pension scheme as part of your employee benefits package could help staff relations.

Alternatively you could set up an exempt group personal pension or an occupational scheme - Consider other types of pension arrangements offering a Stakeholder exemption. Some of the issues to think about are outlined below:

  • You must make a payment of at least 3% of each employee's basic salary to the scheme for this to be an exempt group personal pension and to avoid setting up Stakeholder.
  • Your contributions will be allowable as a business expense, reducing taxable profits and possibly potential tax liability.
  • Administration for a group personal pension will mainly be dealt with by the product provider