Are you ready for stakeholder pensions? John Davies outlines one of the major elements in the government’s pension strategy.

Stake your claim

  • Employers are required to provide access to a stakeholder scheme, if they put restrictions on occupational schemes
  • Employers must nominate a stakeholder scheme
  • Employers must deduct contributions from the payroll and pass them on to the scheme
  • Scheme providers will have to provide basic advice
  • Scheme providers can charge only 1% of the fund value for operational costs

    • Source

    Electrical and Mechanical Contractor

    Postscript

    John Davies is head of business law at the ACCA.