Group Personal Pensions

As employers move away from offering occupational schemes because of costs and liabilities, the new breed of pension arrangement for employers to consider is the Group Personal Pension. Nicholls Stevens are regularly advising employers on the best method of establishing these schemes and assisting in the day to day administration

An employer may  offer a Group Personal Pension Plan to his employees. In this case each employee has his or her own personal pension into which the employer makes a contribution. The employee may also contribute directly or by salary sacrifice. In either event, the employee will receive  the enhancement of tax relief on the contribution made (there are limits to the level of contributions and advice may be needed).

Plans can be structured in such a way that the employer makes different levels of contribution for different classes of employee and in most cases the employee has a high level of control over the investment policy which is followed.

Nicholls Stevens offer work place advice, we run surgeries in house for the members of schemes we administer. This enables the members to seek advice not only on their personal pension but also other pension and financial advice from an independent source

As the long term performance of these schemes and the resulting pension depends on the member making the right investment choice, we strongly recommend that employers offer ongoing investment advice to their employees

On leaving service the employee takes the pension with him and can continue to make contributions or persuade a future employer to contribute.