Stakeholder Pension
By law any employer with five or more employees must offer a
stakeholder pension scheme, which must be brought to the attention
of all employees who must be given the chance to make an informed
decision by seeking advice of an independent financial adviser. Stakeholder pensions were made available from 6 April 2001, with
the intention of increasing the number of people saving for
retirement. They is be widely available from banks, insurance
companies or building societies, amongst others.
If an employee’s contribution is currently £80, the pension administrators will add 20% tax relief and a total of £100 is paid into their plan.
The Government are keen to make access to pension schemes much
easier. As a result, current legislation means that businesses
that do not already have a suitable pension arrangement in place
will have to offer access to a Stakeholder pension scheme for their
employees:who have worked for them for more than 3 months, and
whose earnings are above the National Insurance lower
earnings limit
Employees Rights
Employers with 5 or more staff must now offer their employees
access to a stakeholders pension scheme. You must formally choose
the scheme from any commercial financial service pension company who
have registered their stakeholder pension scheme with the Inland
revenue and the Occupational Pensions Regulatory Authority (OPRA),
from 8 October 2001. Employee's statutory rights must be
incorporated in the employment contract.
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Some Stakeholder Pension Providers |
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Norwich Union |
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Scottish Widows |
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Legal & General |
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Standard
Life |
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Scottish Life |
| Prudential |
The basic rate income tax is 20%. The taxable pay on stakeholder pension
1s 80%.
Some employers' may wish to set up company health insurance plans or medical cover with the same pension company reducing administration.
NHS Pension.
If you are a GP Practice. then the NHS Pension scheme must be
offered unless the employee opts out by completing SD502 form.
Suitable alternative occupation pension schemes can be offered.
There are
changes to the NHS Pension scheme effective from 1 April
2008 where a tiered contribution scheme will be in place.
If you no
longer wish to administer the NHS Payroll and Pension, we are
currently accepting new clients now. Existing clients of GP Practices can login to customer support for
more information on the NHS Pension scheme members.
This page was last updated
24/01/2010
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