Introduction

 

Many businesses appoint professional advisers to help them comply with pension legislation and manage their schemes. Pension provision is important in your relationship with your employees, so make sure your pension scheme is run properly. Let your employees know of any changes that may affect them.

 

There are two main categories of pensions:

• occupational schemes - salary-related, money-purchase or a hybrid (which could have both a salary-related and a money-purchase section)
• personal schemes - including personal pension schemes and stakeholder pension schemes, which are arrangements between individuals and pension providers

 

Occupational schemes include small self-administered schemes and executive pension plans. Some businesses also set up funded unapproved retirement benefit schemes, usually for directors or owners.

 

Employers may also contribute to personal or stakeholder pensions if they are prepared to do so, but this is not a legal requirement.

 

This guide covers employer and trustee responsibilities, processes, records and reports required, and how to open, wind up or change a scheme.

 

Subjects covered in this guide

• Introduction
• Regulations for setting up a pension scheme
• Pension trustees’ role and responsibilities
• Running a pension scheme effectively
• Changes to a pension scheme
• Winding up a pension scheme
• Checklist for employers and pension scheme trustees
• Buying or selling businesses with pension schemes