Stakeholder AND company pension?

Pal

This looks a bit restrictive to me - although it must be 'legal' I imagine.

Employers have to offer access to a workplace stakeholder pension except where...

..they already offer a group persional pension into which they pay at least 3% of your salary...

.. On stakeholders, they must offer access within 3 months [I think] but thereafter if you don't take them up they only have to reoffer access twice annually [which stops people starting and stopping contributions all the way through the year]

So I'm a little curious how your employer justifies offering you no scheme to join for a whole 12 month period?

The rules are that you have to offer access to a stakeholder to all employees within 3 months of their joining the company, UNLESS you are offering an alternative pension scheme to which you contribute at least 3%. There is not allowed to be a waiting period of more than a year to join that scheme.

The one year waiting period is perfectly legal. This is done so that employers do not waste money on pensions for people who will stay less than a year before leaving again. It also means that the people who run the pension do not have lots of tiny little pension amounts in respect of employees who left within a year.

The only point I would question is whether or not the two year waiting period for the 3% contribution is legal, as I would have thought that it should be provided within the 12 month period.

No doubt they have set it up correctly though.

3% is crap but it is better than nothing at all, which is what they could have done. I suggest making use of the available facility, and in the meantime, look around for another job that offers a better pension benefits. You may even get a payrise into the bargain.

Milarky

'crap'? Has the 'Thingy' Finder been switched off then?  ;D

...So are you saying that at the end of the first year the employer should pay 3% of that year's salary [but may require the employee to pay a matching 3%] and going into a second year has to pay 3% percent ongoing?

.. It's just that I had a quick look at the SI Regs and there it says...

http://www.legislation.hmso.gov.uk/si/si2000/20001403.htm#22

PART IV - EMPLOYER REQUIREMENTS
Exemptions from employer access [to stakeholder] and consultation requirements
"22(3) Contributions are made in accordance with this paragraph if they are made on each occasion on which the employee is paid remuneration by the employer (or, if the employer and employee agree longer intervals, at such longer intervals as are agreed) and at a rate of at least 3 per cent. of the amount of remuneration paid.

22(4) Contributions made by the employer in accordance with paragraph (3) may be conditional on the employee making contributions to the same scheme at a specified rate on each occasion on which he is paid (or, if the employer and employee agree longer intervals, at such longer intervals as are agreed)"

The one year wait isn't there - just a reference to the contract of employment allowing an agreed variation.

Hmmm! I thought the purpose of the stakeholder initiative was that anybody would be covered by a scheme straightaway?

Pal

You only have to provide a stakeholder if you have any relevant employees.  From the link you provided (further down the same page):

Definition of relevant employees

23.  - (1) The following persons shall not be an employer's relevant employee for the purposes of section 3 -

(a) any employee whose employment would qualify him for membership of an occupational pension scheme of the employer had he been employed by that employer for more than 12 months;

Presumably the pension scheme on offer qualifies as an "occupational pension scheme".  I am not up to date on this legislation but I believe that paying 3% to a personal pension arrangement also exempts someone from being considered a "relevant employee".

Stakeholder regulations mean that anyone who works for a company with over 5 employees will have access to a pension saving arrangement, but it does not mean that contributions have to be paid for them, and it does allow companies to only make schemes available to employees after a waiting period of up to a year.

!!!!!! works as well.