Company Pension Provision
Currently each employer with at least 5 members of staff has to ensure that a stakeholder scheme is in place, but contributions are voluntary. Few people realise that the provisions of the Pensions Act 2008 will impose mandatory contributions from 2012.
From April 2012, each employer will need to contribute a minimum of 3% of earnings to a suitable pension scheme and each employee will be required to contribute 4% of earnings to the same scheme. At a time when the economy is likely to growing much more slowly than it has in the past, this change (although necessary), will be a real burden.
Furthermore the stakeholder contracts of the past are likely to change to Personal Accounts where the charges are low or limited and therefore leave little room for investment advice - and very few investment choices! Therefore as at present, many employers will need to pay a fee to pension advisers in addition to the 3% contribution - or leave their employees floundering!
True to our forward thinking innovative nature, we have negotiated an extremely competitive Group Personal Pension with, in our opinion, the best large provider. It is very competitively priced, allows for full investment advice upfront and on an ongoing basis and remunerates Lewis' so that we do not need to charge any fees to the company.
Not only have we achieved one of the best schemes in the market, but we will also help the company phase in a scheme so that it does not come as a complete shock in 2012!