Group Pensions For Employees
A good company pension scheme should not be looked at as an expense, but as an Investment In your business.
What is it?
A tax efficient savings plan funded by employers and employees through payroll deduction to build up a pension fund to provide an income in retirement.
Stakeholder Pensions
- All companies with 5 or more employees must provide access to a stakeholder pension
- Failure to provide this can result in a fine of up to £50,000
- Choice of lump sum or regular contributions
- Tax relief on employee contributions
- Flexibility to allow employee to move fund to another provider/employer
Personal Accounts
- A government compulsory national pension savings scheme due to be implemented in 2012
- If implemented, it will be compulsory for all employers and employees to contribute to the government personal
account or their own scheme - Employers need to consider the fixed cost implication if these proposals are implemented
Why choose a Pension Plan?
- Rewards and motivates employees sending them a strong signal of commitment
- Enhances your reputation as a good employer
- A high value benefit to aid retaining and rewarding existing staff and attract quality new employees.
- Regularly tops polls of employees as the most valuable benefit an employer can offer
- Growing awareness amongst individuals of the need to take responsibility for their own retirement solutions
- Shows employees you care about their financial future
- Pensions have attractive tax benefits for employers and employees
- Allows flexibility to provide different benefit levels to different categories of staff
- Ability to choose contribution levels
