I have previously mentioned the implications of the new autoenroll pension provisions. Well now
with effect from 1st October 2013 the obligation to give access to a
stakeholder pension has been repealed.
The old rules said that a UK employer with
five or more employees had to give access to a stakeholder pension scheme - but
no more. There are some transitional provisions which allow an employer to
continue deducting contributions from the salary of an employee who is an
existing member of a stakeholder scheme after 1 October 2012, but if an
existing member asks his employer to stop the deductions, the employer must
tell the employee that it is no longer required by law to deduct contributions
and pay these to the scheme on his behalf, but that the employee can still make
payments directly to the scheme, provided this is permitted by the scheme
rules.
I was expecting this change to be linked directly with the staggered
introduction of auto enroll but I suppose that would have involved some really
joined up thinking!
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