In 2012 the Government introduced “Auto-Enrolment” legislation designed to help people save more for their retirement. The legislation requires employers to enrol their workers into a workplace pension scheme. Workplace pension schemes are set up either as Group Personal Pensions or as Trust-based Schemes such as NEST and The People’s Pension.
A Group Personal Pension is a series of individual Personal Pension policies established as a group. This means that there is an individual contract between each member and the scheme provider (usually an insurance company). A Trust-based Scheme, as the name suggests, is a scheme run by a group of trustees appointed by an employer. There are no individual contracts but the trustees have a “fiduciary duty” to scheme members, i.e. an obligation to act in their best interests.
At HDA we have considerable experience of advising on and implementing workplace pension schemes. Some of the key features of our service are:
Streamlined and efficient administration
Highly competitive costs
Advice on and implementation of salary sacrifice and net pay arrangements
Regular on site workshops (by prior arrangement with employer)
Individual advice on existing benefits
Individual retirement advice
Of greater interest to Company Directors we also have considerable experience of Group SIPP and SSAS arrangements. The SSAS option is increasingly popular for directors wishing to use their pension funds to invest in their own business. A SSAS may also allow Company Directors to fund their retirement at an accelerated rate (in excess of the normal money purchase Annual Allowance). This may offer valuable tax-saving opportunities.
For more information please get in touch.