Know your legal obligations on pensions

Introduction

It is sensible for everybody to make sure that they have some sort of pension provision. As an employer, you need to understand your legal obligations in this area.

You should consider your own retirement needs as well and, even if you own the business, do not rely on selling your company as a guaranteed source of income on your retirement.

As an employer you are currently not obliged to set up a pension scheme, but - depending on your size and your existing provision - you might be obliged to provide access to one run by a third party. However, the Pensions Act 2008 will introduce new obligations on employers to provide access to, and contribute towards, a workplace pension scheme for eligible employees.

The two main types of private pension are final-salary and money-purchase schemes. Money-purchase schemes include occupational money purchase, personal pensions, stakeholder pensions and executive pension plans.

Whichever pension you choose, either for yourself or on your employees' behalf, you need to understand the relevant regulations and tax implications. Talk to a professional adviser about your particular needs before deciding.

This guide will help you understand your options and explain your legal obligations.

Subjects covered in this guide

• Introduction
• Final-salary pension schemes
• Money-purchase pension schemes
• Stakeholder pensions
• Promoting stakeholder and group personal pensions to employees
• Keeping employees informed
• Contracting out of the State Second Pension
• Pensions reforms

Print options - What are my print options - Opens in a new window

• Add guide to my print portfolio (print later as PDF)

Email options - What are my email options - Opens in a new window

• Tell a friend about this page
• Send me an email alert when this guide changes