TT8: October 8th is Stakeholder Pension Day
With effect from 8th October 2001 all businesses employing five or more people must have systems in place to enable their employees to make pension contributions under the new stakeholder code.
Apart from businesses employing less than five people, the only exemption is for organisations that offer all employees a personal pension to which the company contributes at least 3%.
Failure to comply with the law could render you liable to a £50,000 fine.
What do you need to do?
The only requirement is that you provide access to a scheme and the facility for employees to make contributions through the payroll. There is no obligation for the company to contribute to the fund. However, time is running out. If you haven’t got a scheme in place already, you’ve only got a few days left.
Barnes Roffe Topical Tips
- You don’t have to contribute to the scheme, but you must make one available!
- If you haven’t got a stakeholder pension scheme in place ACT NOW !
- There are many well – known companies that offer ready-made packages that are just a phone callaway. Alternatively, your independent financial advisor will be pleased to advise you.
- Charges to employees are limited to 1% per annum in all cases.
- If you think you are exempt because you provide a company plan get this verified by your advisor.
This bulletin is intended to remind employers of their obligations under the rules regarding stakeholder pensions. Whilst Barnes Roffe is authorised to carry on investment business by the Institute of Chartered Accountants in England and Wales, nothing in this bulletin should be construed as investment advice.Talk to Barnes Roffe today