What is a group pension?

If you work for a company sometimes Employers set up a group pension for staff. If you have are an employer and are thinking of setting up a Company Scheme please give us a call. Group Pension arrangements are not suitable for all companies and therefore the right pension recommendation is accessed on a case by case basis. There are a number of conditions which are standard minimum requirements in all group pension arrangements.

What are the minimum requirements that i should know about Defined Contribution Occupational Pension Schemes?

• Benefits are not personally owned, they are held under trust and in accordance with scheme rules
• The Employer must contribute, normally at least 10% of ordinary annual contributions to the scheme
• The employee can also make a contibution if they wish
• Scheme can also provide death and retirement benefits in one package
• Tax relief on employee contributions up to certain limits
• Tax relief on employer contributions allowed in the companies accounting period in which the contribution is paid
• Tax relief on special employer contributions may be spread forward over a period of 5 years
• At retirement a Tax free lump sum entitlement of up to 150% X final renumeration at normal retirement age (20 years + service)