News from moneyextra.com
If you have more than 5 employees, you have to provide a 'stakeholder' pension as a minimum or face a potential £50,000 fine.
A Group Personal Pension (GPP) or Group Stakeholder Pension (GSP) is a group of personal pension plans or stakeholder pension plans arranged by an employer for their employees. Each employee has their own plan, which they can take with them if they change jobs. Similarly Group Self Invested Personal Pension (SIPP) plans can be set up. These are similar to GPP and GSP, but offer much greater investment flexibility and more options when benefits are taken at retirement. However, for lower fund values these can be comparatively expensive.
There are a number of companies offering these schemes for employers. We can advise you, as an employer, which type of scheme would be most appropriate and who can provide the options you require. These schemes can often be run “on-line” giving employers and employees access to plan details.