Setting Up a Company Pension Scheme
Setting up a company pension scheme can be a complex process and there are a number of different options to consider before deciding on the pension scheme that is right for your company.
Setting up a company pension scheme- what you should consider:
- Find out what your legal obligations towards your employees are, and how this may change in the future.
- Consult with employees on the benefits and drawbacks of different schemes.
- Consider the amount your company is willing to make in contributions towards the fund.
- Consider the size of the fund you wish to make available to your employees upon retirement.
Setting up a pension scheme for your company will soon become a legal obligation. Currently any company that has more than five employees is required by law to provide employees with access to some form of pension scheme. Between 2012-2017 new laws will be phased in meaning employers will be required to automatically enrol eligible employees in, and make contributions towards a company pension scheme or a NEST (National Employment Savings Trust) pension scheme.
There are several different forms of company pension schemes which you may like to consider as suitable for your company, these include occupational pension schemes, company stakeholder pensions, and personal pensions.
It is essential when setting up a company pension scheme to strike a balance between keeping your employees happy and making the most of of your budget.
To discuss your options for setting up a company pension scheme we recommend that you speak to an independent company pension advisor from one of our partner firms for a free initial consultation.
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