New tPR guidance on choosing a pension scheme
Details
The Pensions Regulator (tPR) has issued new scheme guidance for employers to either set up a new scheme or check that their existing scheme meets certain criteria for automatic enrolment purposes.
Choosing a new scheme
Employers will need to find a scheme that is suitable for them and their staff. Issues to consider include cost, whether it works with their payroll and tax implications for staff.
As there are a number of different types of pension schemes available and different types of specialist providers offering these schemes, tPR is advising employers to seek legal and financial advice before making a decision.
Checking an existing scheme
If an employer wants to use an existing pension scheme it will need to meet certain criteria. This may include changing the scheme rules or terms and conditions, being tax registered in the UK and requiring a minimum level of contributions to be paid into the scheme (dependent on the type of scheme).
If an employer finds that they cannot use their scheme, they will need to choose a new one that meets the requirements for automatic enrolment purposes.
Please see the full guidance statement here.