1. Find out if your business is legally obliged to arrange access to a stakeholder pension scheme. You may be fined if you fail to provide access to a scheme.

2. There are several exemptions which may mean you do not have to provide access. Check to see if any of these apply.

3. Check to see if any of your employees fulfil the criteria required to join the scheme. You can get this information from the Department of Work and Pensions (DWP).

4. If your company provides an existing company pension scheme, investigate whether you would benefit from replacing it with a stakeholder scheme.

5. Choose a registered stakeholder pension scheme from a list held by the Occupational Pensions Regulatory Authority (OPRA).

6. Consult with qualifying members of staff and the organisations who represent them (like trade unions) over the choice of pension scheme.

7. Write and notify the scheme provider telling them that they are your scheme of choice.

8. Give details of the chosen scheme and its providers to your employees. You must also give them contact details and allow them reasonable access to the scheme provider.

9. You will make deductions from staff wages. Work out how much these will be for each qualifying staff member, and inform staff in writing how and when these payments will be made.

10. Send this money and any additional contribution you may wish to make as an employer to the scheme provider on a regular agreed basis.

Dos and Don’ts:

Do:

Keep an accurate record of all payments made.

Check regularly that the scheme is still registered with OPRA.

Don’t:

Choose a scheme without consulting qualifying employees.

Give financial advice, or advise staff on which pension to take.

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Information supplied by Business Insight
Central Library, Chamberlain Square, Birmingham. B3 3HQ
Tel: 0121 303 4531 Email: business.library@birmingham.gov.uk
www. birmingham.gov.uk/businessinsight
www.bestforbusiness.com
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