Product category:
Pensions and retirement
News Release from: Standard Life Bank | Subject: Pension scheme
Edited by the Insidemoneytalk Editorial
Team on 07 December 2007
The Pensions Bill published today will
remove the requirement for employers
to designate a stakeholder pension scheme.
Currently, employers are required to nominate a stakeholder pension provider and tell employees which scheme that is, so that employees can make payments into that scheme deducted directly from their wages There is no requirement for employers to make contributions into stakeholder schemes
This article was originally published on Insidemoneytalk on 11 Oct 2007 at 8.00am (UK)
Related stories
Standard Life PBR response - Tax avoidance loophole closed
The Revenue has closed a loophole which allowed pension funds to be passed on tax-free. Providers of small pension schemes are marketing scheme pensions as a way of passing pension money without tax
Pension Regulator governance of DC and new transfer value calculations
The Pensions regulator has published it's response to the andquot;Better governance of work-based pension schemesandquot; consultation responses which can be found here:
The requirement to designate a stakeholder scheme will be replaced by the requirement to automatically enrol employees into personal accounts or a good pension scheme (called a 'qualifying scheme').
Employers will also have to contribute to personal accounts.
It is clear that enforcement rules for personal accounts will be more stringent than stakeholder schemes.
Employers can be fined up to £50,000 initially with that fine increasing by up to £10,000 A DAY if they fail to comply with the new rules.
John Lawson, Head of Pensions Policy at Standard Life said, "This brings to an end the failed stakeholder experiment.
It is thought that as many as 80,000 employers are currently breaking the law by failing to designate a stakeholder.
The Government has bowed to the inevitable by repealing what is an unenforceable law.
However, the Government has signalled that it intends to get serious with tardy employers when personal accounts are introduced in 2012.
Failure to comply with the new personal accounts requirements could result an initial fine of up to £50,000 increasing by up to £10,000 on a daily basis.".
• Standard Life Bank: contact details and other news
• Email this article to a colleague
• Insidemoneytalk Home Page
