Company Pension Scheme Introduction

In_for_a_penny

After being with the same company for 22 years, there is a possibility that it is introducing a company pension scheme. Initially, I expect it has been done due to people who have been interviewed for jobs are declining the offer when they find out there is no pension scheme. The type of scheme is yet to be defined but the two options I have heard of are, ‘Group Personal Pension’ and ‘Occupational Pension’. What are these and which would be best?

We (the employees) are invited to a ‘seminar’ by an individual financial advisor who deals with stakeholder issues of some employees.

I have a personal pension which I pay into monthly (approx. £140) and, after experiencing problems with a previous pensions provider, transferred my opted out contributions to another provider.

My questions are as follows:
- Is the introduction of a company scheme a voluntary or mandatory thing i.e. would I have to join?
- Is there a minimum/maximum amount that would have to be paid into it by me and my employer?
- Can funds be paid instead, into my personal pension rather than the company scheme?
- At what age would I have to be before a company pension scheme was made available to claim?
- Are the contributions normally index linked and payable as such by both parties.
- What is an average contribution made by a company and an employee?
- If the company in the future announced redundancies, would I be able to take out the money or would I have to freeze it and wait until I was of qualifying age to claim it?

I realise I have posed many questions but I would be grateful for any answers to any or all of them.

Thank you

EdInvestor

In_for_a_penny wrote:

The type of scheme is yet to be defined but the two options I have heard of are, ‘Group Personal Pension’ and ‘Occupational Pension’. What are these and which would be best?

A Group personal pension is the same as a personal pension but the charges are usually lower becauyse there is a discount for bulk buyers ( the employees). Assuming the Occ scheme proposed is money purchase, not final salary,they are much the same, but the occ scheme is often more restrictive.

- Is the introduction of a company scheme a voluntary or mandatory thing i.e. would I have to join?

Voluntary: No

- Is there a minimum/maximum amount that would have to be paid into it by me and my employer?

If the employer is giving you free money,there is usually a minimum you have to pay in to get it, eg you pay 3%, employer kicks in 5% on top and pro rata.

- Can funds be paid instead, into my personal pension rather than the company scheme?

Possibly, but often they won't because the company ( or the IFA?) " don't want the cost/bother of the extra admin" ( and/ or maybe he's paid less?)

- At what age would I have to be before a company pension scheme was made available to claim?

GPP is same rules as for personal pensions, ie 50, going up to 55.Occ should be similar but might vary.

- If the company in the future announced redundancies, would I be able to take out the money

Yes.

In_for_a_penny

Thanks for taking the time to respond so quickly.