Is there a duty to setup pension provisions?
Discussion
The only obligation isfor the employer to have a Stakeholder scheme designated, and to offer to deduct your (voluntary) contributions through payroll and remit them in a timely fashion to the designated provider.
There is no requirement for the employer to contribute. Yet. This may change in 2012.
There is no requirement for the employer to contribute. Yet. This may change in 2012.
Any UK employer with 5 or more employees MUST offer a Stakeholder Pension Scheme to theire employee - if the employer doesn't already have an established employer occupational scheme in place. The employee is not obliged to join the stakeholder scheme - but the choice to join must be available.
If an employer does not make stakeholder scheme - they are in contravention of employment and pension regulations and could be fined.
If an employer does not make stakeholder scheme - they are in contravention of employment and pension regulations and could be fined.
Unless exempt, the company has to choose (designate) a provider, having consulted relevant employees, and then make all eligible employees aware that they can choose to contribute to it.
See p5 of the booklet at http://www.thepensionservice.gov.uk/resourcecentre... for more details.
See p5 of the booklet at http://www.thepensionservice.gov.uk/resourcecentre... for more details.
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