Pension Help (25yr Old)

MikeJones_2

dunstonh wrote: »

That ruling was abolished earlier in the year. Part in preperation for the NPSS and part because the majority of the schemes just existed on paper and not in reality...

Thanks dunstonh. Hadn't picked that up on our radar, but it's a logical move.

Can you point me to the Regs that this was issued under, as I can't find them?

Currently, these websites all continue to state the '5 or more employee rule':

The Pensions Regulator

The Pensions Advisory Service

Business Link (which you are directed to from the link on DirectGov Legal obligations for employers with regard to stakeholder pensions)

Mike

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

dunstonh

Would someone from say HSBC be ok or would he try and sell me a particular product?

No. He is a salesforce adviser. Targets, sales pressure etc never goes well with proper advice.

It's a job to know why to find a good honest IFA

Statistically its not. IFAs do the majority of transactions but only accounted for 4% of complaints to the FOS last year. The image that is sometimes presented doesnt match reality. Probably on part because research has shown that over half of those who have seen tied sales reps actually thought they were seeing an IFA and not a sales rep. Just avoid the salesforces and you should be fine.

Thanks dunstonh. Hadn't picked that up on our radar, but it's a logical move.

Just for reference it was in the last pensions bill which took effect earlier in the year
(copy and paste of proposals in the bill below)

Removal of the employer stakeholder designation requirement
5.13 From 2012, all employers will be required to automatically enrol eligible workers into a qualifying workplace pension scheme. This will make obsolete the
current requirement that employers with five or more employees must (unless they provide appropriate alternative pension arrangements) designate a stakeholder pension scheme. The Government therefore proposes to remove this requirement, although employers may still continue to offer stakeholder pensions as qualifying schemes or as an additional pension saving option.

5.14 Removing this requirement is consistent with the Government’s aim to simplify the pensions system for employers. It will mean that employers no longer have a statutory duty to:
• designate a stakeholder pension scheme;
• consult their workforce about their choice of scheme;
• supply employees with information about the scheme;
• supply information to the pension provider; and
• permit representatives of the pension provider access to the workforce

MikeJones_2

Hi dunstonh,

So, is it currently Draft Regulations as the Bill was being read in the House of Lords recently (see BBC.co.uk - right hand column)?

If it is draft, then the '5 or more employee rule' surely still stands until the Bill is passed?

Mike

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

dunstonh

It is draft but they have already stopped enforcing it. We got the announcement for that earlier in the year. In other words, if they get someone reporting a firm for non compliance they will take no action. The bill is just the formality of this.