Employers and Company Schemes

The changes to pensions which took place in April 2006 brought an additional set of problems to employers with company schemes.

Almost all the enquiries we receive now are how to wind-up a company scheme with the least possible damage and impact to the business. All too frequently these focus just on the cost whilst ignoring the effect on the morale of the workforce. This is an issue which needs to treated with care, there is no point saving money if the effect is to alienate the people who are vital to future success.

Group Personal Pension

A group personal pension is not a company scheme so escapes most of the issues that have caught the attention of the press. It is the most common solution offered in place of a discontinued company scheme. The main pitfall to avoid is choosing the wrong insurance company to handle the administration.

If you have a scheme and already have problems with the idiosyncratic insurers approach then the only two solutions are

  • 1) to adopt, which is possible with some tweaking, or
  • 2) to change, which needs to be handled carefully to avoid upsetting your key employees