Stakeholder pensions to burden small businesses

Employers are not relishing the prospect of having to
provide stakeholder pensions through the pay roll a survey has revealed.

The survey of members of the Institute of Directors
discovered that although the vast majority of business leaders were well informed
about the new pension, most will be forced to comply against their will.

More than 90 per cent of employers had established whether or
not they needed to give access to a stakeholder scheme.

But only 31 per cent of employers employing fewer than five
staff, who are not obliged to provide access to the pension via the pay roll,
said they would do so voluntarily.

The survey showed that 83 per cent of employers, with
between five and nine staff, who are allowed no opt out unless they provide
alternative pension arrangements, said they expect to administer a stakeholder pension
scheme.

Richard Baron, deputy head of the policy unit at the IoD,
said, “The survey makes it clear that delivery of stakeholder pensions though
the pay roll is an unwelcome imposition. It is also pointless because employees
could just as well contribute directly from their bank accounts if they wished
to do so.”

By Ben Willmott.
Click here to respond

 

 

Comments are closed.