2nd July 2008, 01:50 PM
There appears to be a new bill going through parliament about occupational pensions. Initial information about it is at : http://www.thepensionservice.gov.uk/pens...counts.asp with more information promised on the DWP website.
It says :
" Minimum employer contribution
There will be a duty on employers to provide a workplace pension scheme or a personal account for their employees, and also to contribute a minimum of 3% (on a band of earnings) to employee?s pensions. This will sit alongside 4% from the employee (on the same band of earnings) and around 1% from the Government in the form of tax relief."
Thus, if people opt out of the workplace options, they have an alternative of the 'personal account'.
I would guess that the IFA 6% is part of the attempt to persuade RAOs (who are the organisations they have more direct influence over) to go above and beyond the bare minimum with their staff, in order to improve the benefits and pay for the profession as a whole.
It says :
" Minimum employer contribution
There will be a duty on employers to provide a workplace pension scheme or a personal account for their employees, and also to contribute a minimum of 3% (on a band of earnings) to employee?s pensions. This will sit alongside 4% from the employee (on the same band of earnings) and around 1% from the Government in the form of tax relief."
Thus, if people opt out of the workplace options, they have an alternative of the 'personal account'.
I would guess that the IFA 6% is part of the attempt to persuade RAOs (who are the organisations they have more direct influence over) to go above and beyond the bare minimum with their staff, in order to improve the benefits and pay for the profession as a whole.