Defined Contribution Schemes

Are you an employer running a defined contribution scheme?

If you are an employer running any kind of occupational pension scheme, you will need to review your provision of pension benefits before October 2012 when the legislation concerning work based pensions will come into effect

It may be that you will want to continue your defined contribution scheme, but extend the membership to include all employees, possibly considering different levels of contribution for different grades of employee.

Nicholls Stevens are currently carrying out reviews for existing and new clients. In some cases it has become apparent that it makes sense for the employer to move from an occupational pension scheme structure to a Group Personal Pension environment because this can release the employer form a great deal of cost and responsibility. When considering the introduction of workplace pensions, this is an ideal time to take advice as to whether your current scheme is suitable and cost effective

Reviews of existing pension schemes are undertaken on a fee basis, we will discuss and agree this fee before the work commences. You may not wish to move from your current adviser but we are able to give you an unbiased “second opinion”

Are you a member of a defined contribution scheme?

If you are a member of an employer sponsored defined contribution scheme or being asked to join such a scheme, you may need to seek advice from a financial adviser, Nicholls Stevens are well placed to give this advice because we have been running pension schemes for many years and dealing with the needs of members of these schemes.

The questions which often arise, are whether it is sensible to join an employer sponsored scheme and if so should you pay extra contributions and which fund should you choose

It does of course depend upon personal circumstances but in many cases if the employer is making a contribution and you can afford the minimum contribution it is worth joining because if you do not it is equivalent to giving up a portion of your salary. The choice of funds is more complex and depends upon your attitude to risk. Really understanding the risk you are taking is important, not just that you are not taking too much risk but in some cases, if you want to achieve a certain target pension you may be prepared to take more risk.Understanding how the funds work and what is in “the tin” us the most important fact and we can help you with these important choices

We meet many clients who have a large number of pension schemes, some defined contribution and they wish to consolidate schemes. This is not always a good idea, you need an expert to make a full comparison of charges, fund choice, administration and penalties. Nicholls Stevens carry out a great deal of this type of work so we are well placed to do this work for you on a fee basis