Press Release

24th April 2001

SMEs Still Unlcear of Stakeholder Obligations

Nearly one in three of the UK's small and medium sized enterprises have yet to address the provision of stakeholder pensions (SPs), according to a study commissioned by internet-based small business information resource, is4profit.com.

Firms have barely six months left to comply with pensions regulations and provide access to stakeholder schemes. The legislation applies to all employers with five or more employees - including directors and part-time workers - and schemes must be in place by October 8 at the latest. Penalties for non-compliance are potentially severe - involving fines of up to £50,000.

The is4profit.com research shows that one in five SMEs are still unsure of whether they need to supply a SP. A further 9 percent were aware of their obligation, but had made no attempt to address the issue.

Commenting on the research, Brian Jack, managing director of is4profit.com said:

"Despite the best efforts of the pensions industry and the Government, there is still a worrying ignorance about stakeholder pensions amongst small businesses. Our research program indicates they are far more exercised by the need to find employees of the right calibre to facilitate expansion."

"Of the one in five businesses who said they were unsure of the requirements of the stakeholder pension legislation, the great majority were from companies with more than 10 employees and so will have to provide access to a scheme. If they all leave it to the last minute the consequences could be serious both for the companies themselves and for the industry which will face a massive surge in applications."

END

For further information contact:

Brian Jack
is4profit Ltd
10 Shieling House,
Invincible Road,
Farnborough,
Hampshire.
GU14 7QU

Telephone: 01252 37 66 50
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

or

David Evans
GEA Public Relations Ltd
89 Great Eastern Street
London
EC2A 3HX

Telephone: 020 7729 0586
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Note to Editors:

is4profit is a new, independent, internet-based business information and advisory service for the small and medium-sized enterprise sector.

The service aims to provide smaller businesses - from sole traders to 250 employee companies - with a one-stop web resource encompassing such areas as expert, practical guidance on business planning, legal and personnel issues, group purchasing facilities, cash flow protection and first steps in e-commerce as well as a comprehensive B2B business directory and details on how to check they are paying correct bank charges.

The company conducts continuing research amongst SMEs to ensure its site content matches their requirements and members are consulted through regular forums. Amongst recent initiatives is the production of a downloadable, independent free guide to the practical demands on small businesses resulting from Stakeholder Pensions legislation.