In the past employer’s provided pension benefits for their employees by means of an approved occupational scheme, either:
- Defined Benefits – also called Final Salary
- Defined contributions – also called Money Purchase
The costs of administration, the Pension Protection Scheme Levy and deficit funding has forced many employers to close their defined benefits scheme to new entrants or future accrual.
The new wave of company pension is The Group Personal Pension or Stakeholder Scheme
In this case the employer has no on going liability and simply contributes to a personal pension plan in the name of the employee. When the employee leaves service the plan goes with him and administration and cost is kept well under control.
From 2012 employers will have to automatically enrol employees into a new workplace pension scheme or convert an existing arrangement into a suitable qualifying scheme.
Nicholls Stevens have been advising employers on running schemes for nearly 25 years. At no time have they needed advice in the way that they need it today. There is so much change, so much complexity and if you are not aware, so much potential liability. If you want to have a partner to lead you through the maze get in touch with us