Ilauliers forced to [lifer Pension ri ts
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by Miles Brignall iousands of haulage companies will have to offer sir employees access to the government's new akeholder pensions or face a fine of up to 30,000.
Every firm with Five or more employees which ies not offer a pension scheme will be required I provide workers with access to a stakeholder )nsion within six months.
The scheme is part of a government initiative encourage those on low incomes to save more ir their retirement; it is designed as an atternave to personal pensions for those without ccess to company (occupational) pension plans. The legislation, which came into force last eek, requires companies to give their employees COSS to a policy provided by one of a list of penion providers, including Prudential, Legal & erieral, Standard Life and Scottish Widows, which have signed up to the stakeholder programme. Tax-free deductions can be made from payroll, or staff can arrange direct debits.
Government advisors have admitted that workers earning less than £12,000 a year will probably be better off remaining in the state earnings-related pension scheme (SERPS). But anyone who decides he can afford the stakeholder pension can contribute up to 14,600 a year.
Many owner-drivers and agency workers have been put off personal pension plans; the stakeholder scheme is designed to attract them with flexible terms and low charges (capped at 1%).
However, the Federation of Small Businesses warns that in the long term the new pensions will be unworkable and a burden to small companies— particularly those without computerised payroll systems. Employees of larger firms with company pension schemes are unaffected.