Firms risk fines for failing staff on stakeholder pensions

first_img Comments are closed. Firms risk fines for failing staff on stakeholder pensionsOn 18 Mar 2003 in Personnel Today Previous Article Next Article Almost half of UK employers are breaking the law by failing to provide staffwith access to a stakeholder pension scheme, and could face fines of up to£50,000. This is the conclusion of a survey of more than 1,280 employers and advisersconducted by City law firm Fox Williams. The survey revealed that while all of the respondents had five or moreemployees – the threshold for provision of access to a stakeholder pensionscheme – only 55 per cent of employers provide some sort of scheme for all orsome of their employees. Commenting on the findings, Helen Monson, employment specialist at FoxWilliams, said she was surprised at the high number of employers who risk beingpenalised for breaching the Stakeholder Pension Schemes Regulations 2000. “Employers who are in breach of the regulations may not be aware oftheir requirements or may simply – and misguidedly, since there is currently noobligation to contribute to a stakeholder pension scheme, merely to facilitateaccess to it – by trying to save costs by not implementing a pensionscheme,” she said. “However, non-compliant employers should note that they may face apenalty of up to £50,000 for failure to comply with their obligation to provideaccess to a stakeholder scheme.” Related posts:No related photos.last_img read more