There have been several attempts over the years to make it easier for employers to provide their staff with retirement benefits. None of these schemes have been particularly successful so it has now passed into law that any employer will have to provide and contribute to a pension scheme for the benefit of its employees.
When the Government launches its’ National Employment Savings Trust (NEST) in 2012, all employees not covered by ‘high quality pensions’ will be automatically enrolled in the national scheme.
With NEST it’s a one size fits all approach. Employer’s will have no control over the way the pension is set-up and run. And they’ll face the risk that their competitors will offer a more attractive pension making it difficult to recruit and retain quality employees.
So you as an employer you have a decision to make. Just satisfy the regulatory requirements and go down the NEST route. Or position themselves as an employer of choice by offering a tailored pension that suits the needs of their workforce and their industry.
The information provided about NEST and automatic enrolment is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice.
Our IFA’s will work with you to create a customised communication strategy designed to increase employee understanding of GPP’s, drive take-up rates and alleviate your administrative burden. For larger plans the material can even be personalised with your company branding.
A group personal pension (GPP) plan is a registered pension scheme. It is a collection of individual personal plans grouped together by the pension provider.
The policyholder can retire at any age after age 55 (subject to plan restrictions). When the policyholder does retire, they can generally take up to 25% of the value of their fund as a tax-free lump sum. The remainder of the fund can be used to buy an annuity with an insurance company.
What distinguishes a GPP from an individual personal pension plan (PPP) is that the charges levied by the provider under the GPP may be lower than under the equivalent PPP. The provider, because they are dealing with bulk business, may be able to offer a reduction in their normal charges.
Contact one of our qualified IFA’s to discuss the impact the new legislation will have on you and to look at the best way forward. We have IFA’s in London, Bromley & Beckenham.