Stakeholder Pensions

First, Choose your Scheme

You are responsible for choosing a registered scheme

• All stakeholder schemes are registered with The Pensions Regulator and a full list appears on the The Pensions Regulator's website. You should check that the scheme you select appears on The Pensions Regulator register and thereafter at reasonable intervals to ensure it remains registered.

Stakeholder pension schemes are available either direct from the stakeholder pension provider or through an Independent Financial Adviser. Many well-known financial companies are offering stakeholder plans.

There may also be schemes designed specifically for people in your type of business. For example, some unions, e.g. the TUC, also offer stakeholder pension schemes.

Contact a number of pension providers to find out what they offer in terms of product features and service.

All the registered stakeholder pension providers have web sites containing full details of their scheme's features and services. You will find web site addresses and other contact details for each scheme on The Pensions Regulator's web site. Alternatively you can access the majority of financial companies offering stakeholder pensions direct from the is4profit site.

If you feel you need more advice you may consider using the services of an Independent Financial Adviser (IFA) (see below for details of how to find an IFA). You may be charged for this advice.

Finding An IFA

If you do not have an IFA you can use our find an IFA tool or contact IFA Promotions who will give you the names of IFA's in your area. In addition you can specify the size of your business (in terms of employees) and they will match the right level of corporate advice to your firm's financial needs.

You can call IFA Promotions B2B Hotline on 0800 085 3251 or visit www.unbiased.co.uk

All IFA's are regulated by the Financial Services Authority (FSA). To check that an IFA is regulated contact the FSA Consumer Help Line on 0845 606 1234. They have a list of all the regulated IFAs.

Can Your Payroll Cope?

Check that you have the facility to deduct contributions through the payroll. By law you have to deduct contributions and send them to the scheme provider if your employees want you to.

Your employees can opt to make direct payments from their bank accounts if they wish

Consulting your Employees

Before you decide which stakeholder pension scheme to choose, you must consult your qualifying employees and any organisations which represent them (e.g. trade unions, staff associations).

What method of consultation you use is up to you. You might:

• Use a consultation/discussion process you already have in place
• Hold a meeting to give employees details about possible stakeholder schemes
• Inform your employees in writing and ask for their views before making the final decision
• Keep your employees updated using e-mail or your intranet system

You only need consult eligible employees

Your employees are entitled to choose a different scheme if they are not happy with your choice. They should be made aware that:

• They will be responsible for making their own contributions to a different scheme, as you are only responsible for deducting and sending the contributions to your designated scheme, unless
• You wish to offer to make payroll deductions to other stakeholder pension schemes.

New employees already contributing to a different scheme

• can continue to pay direct to that pension scheme provider and make the contributions themselves, or
• they can transfer to your designated scheme and ask you to make payroll deductions for them