26 Oct 2012

Employer Stakeholder duty removed as auto-enrolment kicks off

Employer Stakeholder duty removed as auto-enrolment kicks off

In a surprise early move the UK Government has moved employers' focus from stakeholder pensions firmly towards auto enrolment.

In a surprise early move the UK Government has moved employers' focus from stakeholder pensions firmly towards auto enrolment.

From the 1st of October 2012 in terms of new DWP regulations - (SI 2012/ 2480) which implement section 87 of the Pensions Act 2008 - employers are no longer obliged to provide their staff with access to a stakeholder pension.

It was widely expected that obligatory access to stakeholder pensions would be gradually phased-out by 2017 as employers' new auto-enrolment duties kicked-in. 

In a move welcomed by industry the UK Government has taken what could be viewed as a more pragmatic approach and removed what is often perceived as a burden from all employers immediately.

Employers still have to provide payroll deduction facilities and pass on contributions for employees who were already members of their designated stakeholder scheme before 1 October 2012 but if an employee tells the employer to stop the deductions, the employer obligation also stops.

Peter Mutch, Corporate Services Director


Please correct the errors below before submitting your request:

Get in touch

Our dedicated client contact team prefer to receive enquiries through our contact form. We'll endeavour to get back to you within 24 hours or during the course of the next working day.

Source of enquiry