Group Pension & Insurance Schemes

Group Pensions

Employers have a range of options when it comes to providing pensions, either for themselves or their staff. When there are five or more employees legislation requires the employer to provide access to a pension plan, although there is no compulsion for the employer to pay into it. These plans can be ‘stakeholder’ arrangements or Group Personal Pension Plans. Both fall under Personal Pension Plan rules.

Other pension plans can suit a particular business for a variety of reasons. There is nothing to prevent an employer running different schemes for different groups of staff. So owners or executive staff may have schemes which are suited to particular business and/or tax planning needs. This may be to provide for higher paid staff, or to enable a business to invest in property. For example its own premises can form part of the assets of the pension fund which will provide future retirement income.

Different schemes have differing obligations and areas of flexibility - it is important to choose the right option for a particular business.

Group Insurance Schemes

The provision of additional benefits in an employee’s overall package can be a key aspect of attracting and retaining staff. As well as meeting staff pensions expectations, a business may well consider providing various protection plans both to safeguard the business itself as well as adding to employee benefits.

Cover available can range from life assurance plans (paying a lump sum in the event of death), to private medical cover (perhaps including family members as well) and income protection which will meet a percentage of salary in the event of accident or long term illness.

These plans have differing tax treatments and may be assessed as a ‘benefit in kind’ for tax purposes, but they can encourage a feeling of greater security and have been proven to aid staff retention in general. “Groups” can be as small as three members, and some of the savings in cost when compared to individual plans can be very marked.

Who can I talk to about this?

For more information on how we can help in this area, please call or email Tony Hastings or Debby Grinyer. Our telephone number is 01844 261283.