Employers should first check if they must provide access to a Stakeholder pension. Employers can then see if the access requirement applies to all employees.
Employers will be exempt from the employer access requirement if they meet one of the conditions detailed here. Employers can also, (even if they are exempt) give employees access to a Stakeholder pension scheme if they want to.
If you are an Employer the conditions for being exempt are as follows:
You employ fewer than five people
You must include all your employees and this may include company directors but does not include self-employed people.
If you have five or more employees, and fewer than five of them meet the conditions to have access to a Stakeholder Pension Scheme, you must provide these (four or fewer) employees with access to a Stakeholder Pension Scheme.
You offer an occupational pension scheme
You offer your employees an occupational pension scheme that all your staff can join within a year of starting to work for you.
You offer a personal pension scheme
You offer your employees access to a personal pension scheme that meets the following conditions:
- It is available to all employees who should have access to a Stakeholder pension scheme (except those under 18);
- You contribute an amount equal to at least 3 per cent of the employee’s basic pay to the Personal Pension;
- The scheme has no penalties for members who stop contributing or who transfer their pension; and
- You deduct the employee’s contributions from their pay and send them to the Personal Pension provider if the employee asks you to.
- You offer an occupational scheme for some staff and a personal pension scheme for the rest of your employees, and the schemes meet the conditions set out here.
If you have an existing occupational scheme, or an arrangement with a Personal Pension provider (often known as a Group Personal Pension scheme), you should check with the provider of that scheme, or Rosan Helmsley, to find out if the scheme meets the conditions for being exempt.