Group Personal Pensions

A Group Personal Pension Scheme is very similar to an occupational money purchase scheme.

A group personal pension plan is a series of individual personal pensions which have been grouped together to provide cost effective administration and promotion of the scheme. The employer has no legal obligation under the scheme (other than normal employment law) so doesn't have to contribute and has very little administration to perform. 
There is a known cost for the scheme and the employer does not carry any risk.

If your objectives for a Pension scheme are to have a known low cost, minimal administration for you and good value for both employees who stay and those who leave. 
The most effective solution is a Group Personal Pension Plan.

As indicated above, to meet your requirements the best option is to establish a group personal pension plan. 
This type or pension plan is a series of individual personal pensions which have been grouped together to provide cost effective administration and promotion of the scheme. 
The employer has no legal obligation under the scheme (other than normal employment law) so doesn't have to contribute and has very little administration to perform. 
The administration falls on the scheme provider (usually an insurance company) and your Independent Financial Adviser who will act on both your behalf and with the individual scheme members.

However, as this type of arrangement gives individuals much greater control over their pension arrangements, it is important to get the scheme design right from the start. 
The following areas need to be covered;

1. Contribution levels,
2. Investment funds,
3. Ill health, and
4. Death in service benefits.

Most people, when thinking about what their pension will be, relate it to some proportion of their salary just before retirement, 
e.g. the pension will be half of their salary prior to retiring. 

To achieve this type of structure requires the amounts paid by individuals to vary by age. 

The structure below has been developed so that if all assumptions are met in terms of investment and salary growth etc.
Your employees will get a pension of approximately A% of salary just before retiring, for each year they have worked with you.

It is important with this type of structure that no promise of any pension at retirement is made by you to your employees. In addition these contribution rates will apply irrespective of sex.

Click the information jigsaw part to obtain an illustration based on your specific requirements.


This information will be sent to you with a specific key features document which provides a plain english guide to your plan.

Prefer Independent advice?  

Click the advice jigsaw part to obtain expert advice from your friendly Independent Financial Advisers, on the most suitable financial plans for your business. A fee will be charged for this service.


You may also wish to consider a special scheme for your directors of key employees

Click the jigsaw button to go to the Executive Pension Plan's page.