Existing Company Pension Schemes

If you are an employer with an existing pension scheme or schemes, there are a number of very good reasons why you should review them.

Firstly, you need to know whether they are likely to qualify as a “Quality Workplace Pension Scheme” or QWPS. With the advent of the new pensions regime due in 2012 you need to start addressing the issues today. Finding out about Personal Accounts is not merely an option, it is an imperative.

You may like to discuss the various benefits that sound pension schemes can deliver to employers and how best to communicate these added values to the workforce to boost employer relations.

Secondly, the rules governing pensions changed dramatically back in April
2006 and not all employers may be fully aware of their implications and possible opportunities for some really flexible pension and tax planning. It is an area that is often overlooked as many people join a pension and then forget about it until they either change jobs or retire, when it is too late to discover what they could have done if only they had known.

Thirdly, many schemes may have been set up a long time ago and one of the main impacts that the ill-fated “stakeholder” pension regime had was to reduce overall pension charges by a considerable amount (well over 25% according to figures shown in the Government White Paper). This means you need to find out how efficient your scheme is and whether you can get better value for money and at the end of the day, a bigger pension for life!

Fourthly, many employees will naturally be very concerned about their pension funds in these troubled times, where their money is invested and what might happen in the future especially if they are approaching retirement. Whether this involves looking at fund options or strategies to make funds safer in later years, or providing Employee benefit seminars (of which we have years of experience).

Finally, many schemes are arranged in agreement with employees whereby extra pension contributions can be generated by using what is called Salary Sacrifice and utilise a saving in National Insurance contributions. This is often very popular with employees who feel they pay enough tax already!

There has been a huge amount of change in recent years and there is more to come, so in order to keep your company pension up to the mark, why not contact us and talk to one of our Independent Corporate Advisers who will be happy to show you how to potentially add value to your pension scheme and your business.

A pension is a long term investment. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.
Tax Planning is not regulated by the Financial Services Authority.

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