F& W Financial Solutions Limited
Independent Financial Solutions

The Welfare Reform and Pensions Act 1999 states that many employers must offer their employees access to a stakeholder pension scheme.

What does this mean to you as an employer?

Unless you are exempt, you must arrange access to a stakeholder pension scheme for your employees who earn more than the National Insurance lower earnings limit . This means that you must:

• give your relevant employees access to a stakeholder pension scheme no later than 8th October 2001
• choose a registered stakeholder pension scheme
• discuss your choice of scheme with those of your employees who qualify for access
• formally designate the stakeholder pension scheme
• give your employees the name and address of  the stakeholder scheme
• arrange to deduct contributions from the employees pay (for those who wish to pay in this manner)
• give your employees information about your payroll deduction arrangements (within 2 weeks), including: how an employee changes contributions; how often you will accept changes (must be at least every six months); how the employee can stop paying    
• make the payroll deductions
• send your employees (and any employers) contributions to the stakeholder pension scheme 
• record the payments you make
• make sure that your payroll system can cope
• the employee's payments are worked out correctly and sent to the scheme provider    

Your first step is to, use our simple interactive employer decision tree to find out if you are required to provide a stakeholder pension scheme, and if access applies to all your employees.

What should I do if I have to provide a stakeholder pension scheme?  

1. If you have established that you must provide access to a stakeholder pension scheme for your relevant employees, request advice from F & W Financial Solutions Ltd regarding a suitable Stakeholder scheme here.   
2. In order to comply with the requirement to "discuss your choice of scheme with those of your employees who qualify for access" - refer your employees to our simple interactive employee decision tree in order for them to decide whether they need/want a stakeholder pension scheme.
3. Establish how much each employee wants to contribute.

Want to know more?

You can download full details in the Department of  Work & Pensions booklet 'Stakeholder pensions - a guide for employers'

Or call the Stakeholder Pensions helpline on 0845 601 2923 - Monday to Friday 8.30am to 6.30pm. This is a local call rate number provided by the Office for the Pensions Advisory Service (OPAS).