Simple, Low-Cost Group Stakeholder Pension          

Low Cost Pension that need not cost your company anything

 

• If you have 5 or more staff you are usually obliged to offer a Stakeholder pension to staff

  • But you have no obligation to pay into it

• Offering a Stakeholder pension will meet your statutory requirements

  • Setting it up with Pension Salary Sacrifice will provide a real, significant benefit to your staff

• If you set up a GPP which you offer to pay 3% or more of base salary into within 3 months of joining you don't need a Stakeholder

  • The 3% company contribution can be set up to require a matching employee contribution, and you still are exempt

  • So most companies with a GPP are Stakeholder exempt

  • If you intend starting a company pension scheme that your company will pay into a GPP is often a better solution than a Stakeholder

• A Stakeholder can charge an annual management charge of 1.5% for the first ten years, then reduce to 1%

  • GPPs with an amc of 1% or less are available from us, but we also offer low-charged Stakeholders

  • So the charges of both products can be low

• Stakeholder pensions were introduced by the government a few years ago to encourage pension planning

  • Generally they offer a much more restricted fund choice than GPPs

  • Often they are more highly charged than GPPs

  • But, they have their uses in some circumstances, and your company may have a legal obligation to offer one to staff

• Does your company already have a Group Stakeholder in place?

  • Does it have a low charging structure?

    • Our Stakeholders feature an amc (annual management charge) of 1% or less

    • Your existing scheme may be set up with an amc of 1.5% for the first ten years!

  • Do all members have secure internet access to a customised website that shows all the details of their pension?

  • Is Salary Sacrifice set-up to provide the maximum tax efficiency?

  • If fund performance good?

  • Are you staff individually advised as to fund choice, how the scheme works and to answer all their queries?

  • Do you have an Employee Benefits Handbook explaining the pension and benefits schemes provided to all staff?

  • If you currently have a Group Stakeholder in place then a GPP may be the next step to becoming a professional employer

TEBC The Employee Benefits Consultants

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Copyright © 2005 TEBC Ltd
Last modified: 04-Dec-2007