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Group Pension Scheme

How do you know if your company pension is delivering the best possible value to your employees?

A short guide to our Group Pension scheme support

It is now compulsory that all companies in the UK have a qualifying group pension scheme for its employees.  Most employees are automatically enrolled, and the company and its employees have to contribute.

The majority of schemes in the UK are Group Personal Pensions.  These are individual pensions under a group banner.  A pension is a savings scheme where individuals can build up funds for their retirement.

Group Pension

Way too often, Group Pension Schemes are treated as a payroll exercise. Companies should ensure their employees fully value the investment they are making. Bigmore Benefits ensure the benefits of your Group Pension is communicated clearly to employees, so they fully value the investment your company is making.

What are the advantages of contributing to a Group Pension scheme?

  • You cannot access the funds until 55 at the earliest (going up to 57 from 2028). This may not seem like a benefit. But ‘If you could, you probably would.’ So it’s good that it locks your money away for a period of time. The company has to contribute. Employees won’t get the money any other way. Tax benefits on contributions – Depending on the scheme set up, there are two ways employees can contribute:
  • The company has to contribute. Employees won’t get the money any other way.
  • Tax benefits on contributions – Depending on the scheme set up, there are two ways employees can contribute:
Relief at source method
Salary Sacrifice
  • Your funds will grow in a tax free environment.
  • When you retire, you will be able to get 25% of the fund as a tax free lump sum. The rest of the fund is typically used to provide an income for the rest of your days in retirement.
  • There are distinct death benefits attached to pension schemes and these can be used in conjunction with your estate planning.

Key Group Pension Scheme product considerations

Choosing a Group Pension  Scheme for your employees is perhaps one of the most important decisions a company can make for its employees.  Here are some key considerations for companies when making a decision:

  • What are the range of funds available for employees?
  • Is the pension portable for employees (i.e. would they be able to transfer their pensions should they wish?)
  • Performance is subjective because of the range of funds available. However, it is good practise to review the performance of the default fund?
  • What are the retirement provisions available for employee approaching retirement?
  • Do you want senior employees to have access to a larger range of funds?
  • What is the financial strength of the provider? These will typically be rate by either standards and poors or moodys.
  • What are the charges for the scheme both to the employee and the company?

How good is the online functionality for employees?

All pension providers now provide an online facility to view your pension, however, they vary in terms of the tools available.  A good guide is to find a pension scheme where employees can:

  • View their pension online.
  • Review their Attitude to Risk.
  • Change their funds to meet their attitude to risk (ideally with unlimited switches within a year).

Lastly, one of the most important considerations is the online facilities provided by the providers to apply contributions.  These quality of these, vary dramatically.  You should review their ease of use, their ability to cope with large data being applied on a monthly basis, and the back office service provided should employees or the company need help.

Request a quote

We believe we provide the most comprehensive service available for Small Medium Enterprises. We will:

Have an initial discussion to find out your requirements.

Quote the market
Find the most suitable product within your budget.

Report and Recommendations
Report our findings, including a full recommendation of how we believe you should proceed.

Full Implementation
Implement the scheme and provide full communications to your employees.

Ongoing Support
Provide ongoing support to both you and your employees.

Bigmore Employee Benefits

Telephone: 01932 253939
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“I had worked with CB Benefits for a previous business 3 years ago. I remembered the professionalism and friendliness of the Company and its staff and asked them to come and pitch for pensions and benefits with my current company. The package offered was just as I had expected. The process was made very easy for us, CB Benefits staff are always on hand to answer queries and most importantly my staff love the user portal and are using the benefits to their full potential. I would strongly recommend CB Benefits to other companies.“

Tom Ekers
Finance Director, MobileWebAdz Ltd

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