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.
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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.
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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.
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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.
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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.
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General advice on stakeholder pensions: [ Click
here! ]
Useful Links
Links to useful websites: [ Click here!
]
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