How to show staff you’re invested in their future
When you’re looking to set up a new workplace pension or move to a different provider, there’s a lengthy checklist of essential criteria. Does the scheme comply with auto enrolment regulations? Will it stand the test of time – and go down well with employees? Is the provider’s administration service up to scratch? And are they offering a good choice of funds without excessive charges?
What are group pension schemes?
A group pension scheme is a workplace pension run by an employer. The most common type of group pension is a defined contribution scheme – often set up as a group personal pension – that a company offers to its employees in line with the government’s automatic enrolment duties for workplace pensions.
"We research the whole market, recommending the provider who offers financial security, wide fund choice, low charges and a reliable service, which is essential when administering a group pension arrangement. We can also offer group or individual pension surgeries for employees to help answer any questions they may have."
– Simon Claxton, financial services specialist at Macbeth
How do group pension schemes work?
Like other types of defined contribution scheme, the contributions made by a group pension scheme’s members and their employer are invested in a range of different funds. The aim is to build up a pot of money that can be used to provide some tax-free cash and an income when a member retires. Any group pension scheme contributions made by an employer are an allowable business expense.
Give your staff the opportunity to save for their retirement through a pension scheme that meets all your criteria.
- Find the best provider – make sure you’re offered financial security, a wide choice of funds, low charges and a reliable service
- Choose the right scheme – your options include group personal pensions, company pension plans and group stakeholder pensions
- Engage with employees – your staff should be given information about every aspect of the scheme, from becoming a member to deciding how to convert their savings when they reach retirement
- Benefit from tax relief – for every 80p someone puts into a pension, the taxman will turn it into £1
- No strings or catches – just an easy way of making your money work harder
Working closely with your finance and HR teams, we can ensure that you have the best possible scheme moving forwards.
Why choosing a good group pension scheme is important
- If The Pensions Regulator decides that your workplace pension doesn’t meet their auto enrolment requirements, you could face a hefty fine along with the difficult task of making the scheme compliant.
- A reliable service is essential for administering a group pension. Poor administration is the main reason employers decide to change their workplace pension provider.
- Working closely with your finance and HR teams, we can ensure that you have the best possible scheme moving forwards – and that it’s run in the most efficient and cost-effective way.
- A well-run group pension scheme can help maintain staff loyalty. It’s important to ensure your employees have a good understanding of the pension, including how to target a specific retirement age and income level, match fund choice to risk profile and manage pensions from previous jobs.
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"From day 1, the first meeting about implementing our new pension scheme to its conclusion was handled by Simon in an efficient and professional manner. Simon was always on hand with advice and assistance from making the initial provider recommendation to the implementation. He continues to provide all the ongoing support we need. The transition would have been a lot more complicated without Simon’s help."