How to select a workplace pension
Whether you've yet to reach your staging date, or have already passed it - you'll need to review the workplace pension you’re using to enrol your employees to ensure it is 'qualifying'.
Conditions of a qualifying scheme
A qualifying scheme should meet the following conditions:
- It's a registered pension scheme.
- Contributions comply with the minimum amounts required under auto-enrolment.
- There are formal agreements between the parties that the minimum contribution requirements will be met in the correct way.
From April 2015
- A charge cap of 0.75% applies to members in the default fund.
- Consultancy charging is banned.
- Your provider must have an independent governance committee in place, with a duty to act in members' interests.
From April 2016
- 'Active member discount' is banned.
- Advisor commission is banned.
Eligible jobholders who aren't already members of an existing qualifying scheme must be auto-enrolled into an auto-enrolment pension scheme.
Conditions of an auto-enrolment scheme
An auto-enrolment scheme should meet the following conditions:
- Meet the requirements of a qualifying scheme; outlined above.
- There should be no scheme provision, such as a minimum age or length of service, that prevents workers from being automatically enrolled into the scheme.
Alternatively, request a free pension review by phone on 0117 314 1783 or email us.
Get a head start on what you need to know about workplace pension reforms and auto-enrolment in one clear, easy-to-read guide.
Corporate Vantage: our workplace savings solution.