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Stakeholder: user's guide
Page 40
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Stakeholder pensions became available from 6 April to provide a low-cost, privately funded supplement to the state pension.
2 The Welfare Reform and Pensions Act 1999 requires employers to offer their relevant employees access to a stakeholder scheme by 8 October if they have no existing scheme.
3 Employers are exempt from offering a stakeholder pension if they:
• Have fewer than five employees; • Already offer an occupational pension scheme; • Offer to pay at least 3% of salary into personal pensions; there must be no penalty for stopping payments or switching out of the scheme.
4 OPRA has the power to fine non-exempt employers up to 250,000 if they fail to offer stakeholder pensions.
5 OPRA was set up by Parliament under the Pensions Act 1995 to help make sure occupational pension schemes are run safely and properly. OPRA investigates and can take action where there are breaches of the Pensions Act that could put the security of occupational pension schemes at risk.
More information for employers about stakeholder pensions is available from the Inland Revenue helpline on 0845 7143143.
7 The DSS publication Stakeholder Pensions, a Guide for Employers, is free from the Pensions Info-Line on 08457 646 646.
8 OPAS (Pensions Advisory Service) will answer individual queries on 0845 6012923.
• Occupational Pensions Regulatory Authority, Invicta House. Trafalgar Place, Brighton BN1 4CW Helpdesk: 01273 627600.
Website: www.opra.govuk, www.stakeholdersopra.gov.uk E-mail: helpdesk®opra.gov.uk