Employers need to attract and retain the best. Group Personal Pension Plans can really help. Constant downward pressure on state benefits means that employees are increasingly focusing on what they need to do about their own retirement – but they are looking for employers to help. With the advent of NEST employers will be dragged in to the group pension arena – whether they want to be or not! So make your staff feel valued rather than be seen to act at the last possible moment and only when forced to – set up a group personal pension plan…
If a business has 5 or more employees it MUST have a stakeholder pension plan in place. Employers do not need to contribute, merely facilitate employee payment via payroll. So the employer burden is admin only. But employers must designate a scheme and there are large fines for businesses which fail to comply.
If you are looking at Employee Benefits a group personal pension for your business really merits serious consideration.
A Group Pension is a string of personal pension plans (one per employee) into which an employer makes contributions. The plan “belongs” to the employee and individual employees make their own investment decisions and decisions about when to draw benefits. The employer merely collects and remits contributions from employees and pays its own, direct to the product provider.
When an employee leaves service the employer has nothing else to do and no further liability. The plan is the property of the employee who can:
- pick up their own contribution
- transfer it to a new employer’s scheme
- leave it “paid up”
- draw benefits (if aged at least 55)
Group personal pensions are an essential bedrock of all employee benefits planning Contact Us for further information.