Site Established:
Year 2000

Start In Business
Bookmark and Share
 home
 Business News : D.S.S : Stakeholder Pensions : Questions
Employment.


home
site menu

Related Pages



06 April 2001

Stakeholder Pensions Questions and Answers.

FAQ's

I own a small business. Do I have to provide my employees with access to a stakeholder pension scheme?

What exactly are stakeholder pensions?

How do I go about providing access to a stakeholder pension scheme for my employees?

What information do I need to give to my employees about the scheme?

Once I have the stakeholder scheme up and running what do I have to do?

More questions? [ click here ]

Q. I own a small business. Do I have to provide my employees with access to a stakeholder pension scheme?

A. If your company has five employees or more you may need to provide access to a stakeholder pension scheme by 8 October 2001. Employers unsure about whether they are exempt or not should get a copy of our guide 'Stakeholder Pensions - a guide for employers' (PME1) by calling 0845 7 646 646. For clarification on the content of the guide you can ring the Inland Revenue's employers' helpline on 0845 714 3143.

Your employees do not have to join the company designated stakeholder pension scheme, but as an employer you need to provide them with the option to join. Companies that do not provide access to a scheme by October 2001 could face a fine.
[ back to top ]

Q. What exactly are stakeholder pensions?

A. Stakeholder pensions are a new low cost way for your employees to save for their retirement. They are flexible, low-cost private pensions available from 6 April 2001. If your employees want to increase, reduce or stop their contributions they can. Stakeholder schemes do not charge if your employees decide to transfer to another scheme or stop paying into their current scheme.
[ back to top ]

Q. How do I go about providing access to a stakeholder pension scheme for my employees?

A. The first thing you need to do is choose a registered stakeholder scheme that all your employees can join. You can get this list by calling Opra on 01273 627600 or looking at the website where there is an interactive 'decision tree' for employers to find out if they need to provide access. Next, you have to consult employees about your choice. You can do this on a one-to one basis or simply circulate information and request feedback. After this consultation you must "designate" or formally choose a stakeholder pension scheme.
[ back to top ]

Q. What information do I need to give to my employees about the scheme?

A. You should give your employees enough information to enable them to contact your chosen scheme. This could be as simple as passing on the name and address of the scheme provider plus a contact telephone number. But you may prefer to provide further information, such as leaflets, to your employees. Information leaflets should be available from stakeholder providers. You may also like to invite the provider to your workplace to talk to your staff.

The DSS has produced a guide for individuals called 'Stakeholder Pensions - your guide' (PM8) - call 0845 7 31 32 33 to get a copy. Further impartial information on all the available pension options is on the website www.pensionsguide.gov.uk. Impartial advice on stakeholder pensions is also available at the OPAS helpline on 0845 601 2923.
[ back to top ]

Q. Once I have the stakeholder scheme up and running what do I have to do?

A. Once you have chosen the scheme, you must arrange payroll deductions of the contributions your employees want to make to their stakeholder pension. You must also ensure that the contributions reach the stakeholder provider within 19 days of the end of the calendar month in which they were paid. As an employer you only need to provide a pathway for your employees to make their own contributions to the scheme, you do not have to make contributions yourself unless you want to. You are required to change the amount of deductions if employees request it. But the government has put limits on how often employers have to do this to ensure that administration is easy to manage.
[ back to top ]

General advice on stakeholder pensions: [ Click here! ]

Useful Links

Links to useful websites: [ Click here! ]



'Start in Business' Best Sellers :

The Beermat Entrepreneur : Advice on Turning a Good Idea into a Great Business.
How to Make Millions With Your Ideas : An Entrepreneur's Guide.
Richard Branson : The Authorised Biography
Motley Fool : Make your Child a Millionaire.
Hackers and Painters : What impact will programmers have on the rest of us?

Legal Document Templates :
Trading : Debtors & Creditors, Contracts & Letters etc.
Corporate : Corporate Docs & Forms, Company Admin, Companies House Forms
Employment : Recruitment, Staff Management, Discipline & Dismissal
Health & Safety : Health & Safety Statements, H & S Forms

Retailer's and Trader's Resources :

UK Wholesale Directory + Product Database :
SimplyWholesale : Find suppliers & view live wholesale offers.

Wholesale Directory - List of Suppliers :
UK-Trader's Wholesale Guide : Used by thousands of traders. Instant download.

Business Software :
Business Plan Software : Generate a solid business plan.

Gadgets / Future :
Electronic Product Code ( EPC ) Network : Research into the future of products
Buying Gadgets : The first Bluetooth products on the market.
Making Gadgets : Programming wireless devices with Java 2 ME.

Fun Stuff / Entertainment :
Ghana Soundz, Music : Probably the best music you will ever hear
The Office, TV Series : Useful when training your staff!
Need a Better Office Ambiance? : Sound like a call centre on the telephone!

 
last modified: 16-Jan-2001