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Pensions for Business
Executive Pension Plans
These are “pre pension simplification” employer-sponsored occupational pension plans. It may well be the case that a review of this type of plan may find a cheaper and less onerous solution, especially when reviewing Trustees duties and regular audits.
Group Personal Pension
Group Personal Pension Plans are a relatively straightforward method of providing your employees with a pension arrangement. As they are not classed as occupational schemes they are not subject to the more onerous rules and regulations applicable to such schemes. Group Personal Pensions are made up of a series of individual personal pension policies with each employee having their own policy.
In order for the scheme to be classed as an ‘exempt’ Group Personal Pension you will need to make an offer to your employees to pay at least 3% of their basic pay into their plans. If you take this course of action you do not have to designate a separate stakeholder scheme for your employees.
Contributions to Personal Pensions generate direct tax savings. Any contributions made by you into your employees’ Personal Pension Plans can be fully offset against your corporation tax liabilities.
Group stakeholder
On 6 April 2001, the Government introduced a new type of private pension, called a Stakeholder Pension. Stakeholder Pensions are intended to encourage people to make pension provision by having low charges, low minimum contribution levels and by not penalising policyholders if they need to stop paying contributions or move their funds to a new provider.
Group Stakeholder Pension Plans are a relatively straightforward method of providing your employees with a pension arrangement. As they are not classed as occupational schemes they are not subject to the more onerous rules and regulations applicable to such schemes. Group Stakeholder Pensions are made up of a series of individual personal pension policies with each employee receiving their own policy.