Pensions
On this page:
NHS:
Summary
Future developments
Employer Guide
Key references
General:
Summary
Future
developments
Action point checklist
Key references
Questions and
answers
The State Retirement Pension
Occupational pensions
Personal
pensions
Stakeholder pensions
More articles on this topic from
XpertHR
|
NHS |
NHS 2.806
The NHS Pensions Authority website contains advice for employers. (See NHS 2.808 Employer Guide)
NHS 2.807 The Government has issued plans to reform the NHS pension scheme, including proposals to raise the pension age from 60 to 65 and to change from a final salary to a career average scheme.
A consultation paper on this subject was published in January 2005, and closed on 11 April 2005.
More information
NHS
Pension Scheme Review Time Line (PDF format, 82K) (on NHS Employers
website)
NHS Pension Scheme
Review Q&As (PDF format, 98K) (on NHS Employers website)
NHS Pension
Scheme Review Glossary of terms (PDF format, 110K) (on NHS Employers
website)
The NHS
Pension Scheme Review Consultation (on NHS Employers website)
Suggest a link
NHS 2.808 The NHS Pensions Authority (NHSPA) website contains an Employer Guide to assist employers in administering pension arrangements. The guide includes information on:
joining and leaving the scheme;
pensionable pay and contributions;
calculating membership;
transferring scheme benefits;
benefits;
pensions on divorce;
complaints and disputes;
agency targets;
forms and records; and
injury benefits.
More information
Employer Guide (on
NHSPA website)
Suggest a link
Key references
NHS 2.809
Legislation
National Health Service Pension Scheme
Regulations 1995 SI 1995/300
National Health Service (Pension Scheme and Compensation for Premature
Retirement) Amendment Regulations 2000 SI 2000/605
National Health Service Pension Scheme (Additional Voluntary Contributions)
Regulations 2000 SI 2000/619
National Health Service (Pension Scheme and Additional Voluntary Contributions)
(Pension Sharing) Amendment Regulations 2001 SI 2001/1428
National Health Service Pension Scheme (Additional Voluntary Contributions)
Amendment Regulations 2002 SI 2002/610
National Health Service (Compensation for Premature Retirement) Regulations
2002 SI 2002/1311
National Health Service (Pension Scheme, Injury Benefits and Compensation for
Premature Retirement) Amendment Regulations 2003 SI 2003/631
National Health Service (Pension Scheme and Injury Benefits) Amendment
Regulations 2004 SI 2004/665
National Health Service (Pension Scheme and Injury
Benefits) Amendment Regulations 2005 SI 2005/661
|
General |
2.806
Employers often offer employees membership of an occupational pension scheme, which may be contributory or non-contributory. Employers must not attempt to compel employees to become members of a scheme, although membership can be automatic unless the employee requests in writing to opt out. Trustees administer pension schemes. (See 2.809 Occupational pensions)
People who do not have access to an occupational pension scheme may choose to invest in a personal pension plan. Employers may offer personal pensions to employees on a group basis. This is much easier to administer than an occupational pension scheme. (See 2.810 Personal pensions)
Since 8 October 2001 many employers have been required to give employees access to a stakeholder pension scheme. Private pension providers administer such schemes, but employers must deduct contributions to them from employees' pay when requested to do so. Stakeholder pension schemes are available to employees who earn more than the lower earnings limit for national insurance contributions, and they accept contributions of as little as £20. (See 2.811 Stakeholder pensions)
2.807 Retirement age: Currently women reach state retirement age at 60 and men at 65. Between 2010 and 2020 the state retirement age for women will rise gradually, and from 6 April 2020 it will have reached parity with men at 65 (Pensions Act 1995, section 126). The rise in state retirement age will not affect women who were born before 6 April 1950, but women born between 6 April 1950 and 5 April 1955 will retire at an age between 60 and 65.
Age discrimination legislation must be implemented in the UK to comply with the EU Employment Framework Directive. Regulations are due to come into force on 1 October 2006 but will effectively exempt most age rules relating to occupational pension schemes so that pension provision will not be jeopardised and necessary pension operations can continue unaffected.
The Government's age discrimination proposals include setting a default retirement age of 65 but subjecting it to formal review in 2011. Employees will no longer be required to retire below age 65 unless their employer can objectively justify this. Employers will be able to request to work beyond 65 and this right will be based on the current right for parents of young children to request flexible working. The proposals will not affect entitlement to the basic State Pension.
Pension taxation from April 2006: The Finance Act 2004 provides for a new regime for taxing pensions. The regime will apply to all registered occupational, personal and stakeholder pension schemes. Individuals will be able to join more than one scheme, for example someone could join a company pension scheme while retaining membership of a personal pension scheme.
From 6 April 2006 contributions will no longer be limited to a fraction of capped earnings and there will be a single set of tax rules for all registered pension schemes. The Government proposes abolishing the existing tax regimes governing pensions by setting a new lifetime limit of £1.5 million on the contributions amount that can attract tax relief for the tax year 2006/07, tested when the individual takes his or her benefits. The lifetime limit will be reviewed every five years, with the first review in 2010. A charge of 25% will be made on pension funds in excess of the lifetime allowance where the excess is taken as pension, with a 55% charge where the excess is taken as a lump sum.
In any given tax year contributions attracting tax relief will be limited by an annual allowance, initially set at £215,000 for the tax year 2006/07. There will be a charge of 40% on increases in pension savings in excess of the annual allowance. The annual allowance is to be increased steadily each tax year and reviewed every five years. Contributions above these limits can be paid, and tax relief will be given on up to 100% of relevant UK taxable earnings or £3,600 in a tax year, where the individual is a non-tax payer.
A new 'migrant member relief' will allow tax relief on contributions paid to overseas schemes where an individual comes to work in the UK as an existing member of an overseas pension scheme. The new regime will allow full membership of a UK registered pension scheme to any individual, whether or not he or she is resident in the UK. There will be no special time limit on the period during which an employee seconded to work abroad can be a member of a registered pension scheme.
All schemes will be able to pay tax-free lump sums of up to 25% of the capital value of their pension fund during the value of the lifetime allowance, subject to the scheme rules. Employees will be able to remain in employment and make contributions towards further benefits while receiving a pension in full or in part from that same employer. At the moment most employees cannot take their pension until they leave their job.
Other than in cases of ill health, the minimum age for most employees to start taking a private pension is to rise from 50 to 55 by 6 April 2010. This rule will not apply where a contractual right exists via membership of an occupational pension scheme to take a pension earlier.
Guidance can be found in the Registered Pension Schemes Manual (on the HM Revenue & Customs website).
Pensions Act 2004: Although the majority of the provisions of the Pensions Act 2004 came into force on 6 April 2005, the introduction of an online retirement planner, providing a forecast of projected income from state and private pension provision, is not expected to be launched until spring 2006.
The Government intends to introduce regulations effective from 6 April 2006 that will require employers to consult with active and prospective members, and their representatives, on significant changes to their occupational or personal pension provision. Consultation on Pensions: The Consultation by Employers Requirement (on the Department for Work and Pensions website) closed on 26 August 2005. Proposals include a requirement that an annual benefit information statement be produced automatically for non money purchase pension schemes in respect of scheme years ending on or after 6 April 2007.
Stakeholder pensions: When stakeholder pension schemes have become established the State Second Pension will become a flat-rate scheme for those with a significant part of their working life ahead of them, for example those aged under 45 at the point of change. Everyone who is contracted in to the state scheme will be treated as if he or she has earnings of £12,100 (or the prevailing Low Earnings Threshold at the time), regardless of his or her actual earnings. Initially the intention was that this change would be made from April 2007. However, this is now under review following the poor take-up rate of stakeholder pensions and is likely to be delayed.
2.808 The State Pension system combines a contributory state scheme, consisting of a basic retirement pension and an additional pension (previously the State Earnings Related Pension Scheme (SERPS), now the State Second Pension (S2P)), with a private system of occupational and personal pensions. For those who were in employment between 3 April 1961 and 5 April 1975, a third element, a 'graduated pension scheme' applied.
Basic State Pension: To be entitled to a basic State Pension, a person (or sometimes his or her spouse) must have paid or been credited with a certain level of national insurance contributions. A contribution record is established for every individual for whom there is a national insurance number held by the Department for Work and Pensions.
From 11 April 2005, the amount of the basic State Pension is £82.05 per week for a single person and £131.20 for a pensioner couple. To receive a full State Pension an individual must have paid or been credited with sufficient national insurance contributions for around 90% of his or her full working life. Failing this, benefits are reduced on a broadly proportionate basis.
As of 6 April 2005 the Pensions Act 2004 provides for an increase in the rate of pensions where individuals choose to defer claiming their State Pension until after the state retirement age for at least 12 consecutive months. This includes a new option to take a lump sum instead of higher weekly pension payments. The lump sum is based on the amount of pension that a person would have been entitled to for each week or accrual period that he or she defers the claim, with an interest rate at 2% above the Bank of England base rate. There is no upper limit on how long a State Pension can be deferred.
State Second Pension: In addition, employees - but not the self-employed paying Class 2 national insurance contributions - earn an entitlement to an additional, second-tier pension. They can choose to contract out of it and join a pension scheme that gives them equal or better rights in place of that entitlement.
The S2P replaced SERPS with effect from 6 April 2002 (although existing SERPS entitlements are protected). SERPS receives no new contributions from this date, but benefits accrued under SERPS will be maintained so many employees currently working will receive a mixture of old and new benefits.
S2P is aimed at boosting the additional pension of low and moderate earners by providing a minimum guaranteed pension, and allowing carers and some long-term disabled people with broken work records to build up additional pension for the first time.
Unlike SERPS, S2P is calculated on the amount of employees' earnings falling into three distinct bands. The lower and upper earnings limits remain in place and will be uprated each year in line with prices, but two new earnings thresholds determine the three earnings bands used for the S2P calculation.
The Low Earnings Threshold (LET) is uprated each year in line with national average earnings and is set at roughly half the level of earnings gained by the average full-time employee. The LET from 6 April 2005 is set at £12,100.
All employees paying Class 1 national insurance who earn between the lower earnings limit (£4,264 per year from 6 April 2005) and the LET are considered for S2P purposes as if they were at the LET level for each qualifying year. National insurance rebates to those in contracted-out pension schemes (both salary related and money purchase) remain earnings related.
2.809 There is voluminous legislation regulating the administration of occupational pension schemes. Specialist advice and assistance should always be sought before an occupational pension scheme is set up.
Where an employer provides specialist pensions information and advice to its employees, from 6 April 2005 there is no tax liability for the employees. This is provided that the benefit is generally available to all employees and the cost to the employer is below an annual limit of £150 for each employee.
Broadly it is important for employers and employees to be aware of the following:
Employers may not compel their employees to belong to an occupational pension scheme, although membership can be automatic unless the employee elects to opt out in writing. The Department for Work and Pensions has issued guidance, available on the Pensions at Work website, on opt-out techniques, explaining how employers that run stakeholder pension or group personal pension schemes can provide for their employees to become members.
Some schemes require contributions from employees (contributory pension schemes) and others do not (non-contributory pension schemes), though the latter are now a rarity rather than the norm.
Trustees, who hold assets on trust for the scheme members, run occupational pension schemes. Discretion in how to run the scheme is conferred upon the trustees.
Tax relief is currently given on employee contributions, including additional voluntary contributions (AVCs), up to a maximum of 15% of the employee's relevant remuneration for a particular tax year. AVCs are sometimes set up under the original scheme, or under free-standing additional voluntary contribution schemes (FSAVCs). The latter are an investment vehicle, normally managed by a third party, eg an insurance company. The Pensions Act 2004 removed the compulsory requirement on trustees to offer an AVC scheme, although scheme trustees are likely to continue with existing arrangements.
The amount to which a retiring employee is entitled can be calculated in a variety of ways. The rules of the pension scheme will set out the method that has been adopted. A common method was to calculate the amount due with reference to the leaver's final salary and his or her length of pensionable service. However, the high cost of such schemes has resulted in a number of employers closing them to new entrants. Another method is to calculate the amount with reference to the amount of money paid into the scheme by the leaver. This is known as a defined contribution scheme.
Occupational pension schemes usually provide death-in-service benefits. These are usually in the form of a lump sum, which is capped at four times pensionable salary at the time of death.
For the tax year 2005/06 the pensions scheme earnings cap is set at £105,600 and places a ceiling for certain individuals on the contributions that can be paid to, and the benefits that can be paid by, tax-approved pension schemes. In addition, the cap introduced in 1987 on the final remuneration for calculating pension benefits from occupational pension schemes is aligned with the earnings cap. From 6 April 2005 the cap on tax-free lump sums is £158,400, which is one and a half times the pensions scheme earnings cap.
The former employer or a third party (insurance company) pays an occupational pension until the pensioner dies or no dependent relative exists. The pension amounts are subject to PAYE where paid direct by the former employer. However, there is no Class 1 national insurance contributions liability even if the pensioner starts to receive a pension below state retirement age as a result of retiring early through ill health.
The scheme rules of the pension fund determine the frequency of the pension payments. A pensioner is no longer entitled to the same rights as when he or she was in employment, eg the right to receive an itemised pay statement on or before each pay date.
Occupational pension schemes and sex discrimination: Case law and legislation has evolved which relates to sex discrimination and occupational pensions. The European Court of Justice ruled in Barber v Guardian Royal Exchange Assurance Group [1990] IRLR 240 ECJ to the effect that benefits under occupational pensions constitute 'pay' within the meaning of Article 141 of the Treaty establishing the European Community. The significance of this decision was that it meant that the equal pay legislation must apply to occupational pensions.
In summary:
Retirement ages in occupational pension schemes should be the same for men and women who are in the same jobs (Sex Discrimination Act 1975, section 2(1)). Employers can, however, currently set whatever retirement age they choose for their employees.
Women may claim parity with men as regards benefits under the occupational scheme. The legislative scheme mirrors claims under the Equal Pay Act 1970, in that an 'equal treatment rule' is deemed to be included in the scheme. Women may claim equivalence with men who are engaged on like work with them, or who are doing work rated as equivalent under a job evaluation scheme, or who are doing work of equal value to them. The employer may seek to justify its actions by showing that there is a material factor other than sex which distinguishes the treatment of the employees (see 2.307 Equal pay).
Part-timers should not automatically be excluded from occupational pension schemes. They may, however, be excluded where this is objectively justified, eg the benefits arising from membership would be negligible because of their low contributions from pay. Automatic exclusion, which used to be common, usually constitutes indirect sex discrimination because most part-timers are women (Bilka-Kaufhaus GmbH v Weber von Hartz [1986] IRLR 317 ECJ, Pension Schemes (Equal Access to Membership) Amendment Regulations 1995, Occupational Pension Schemes (Equal Treatment) Regulations 1995, Equal Pay Act 1970, Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000).
The old limit on the period for which backdated pension rights could be claimed by a part-timer was two years. However, the Government acknowledged that this two-year limit was no longer lawful and removed it by way of the Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000 (Amendment) Regulations 2002, which came into force on 1 October 2002. Part-time employees who are unlawfully excluded from an occupational pension scheme can now, in theory, claim the right to membership of the scheme and the right to payment of a retirement pension retrospective to 8 April 1976.
Special rules apply to the level of employee and employer pension contributions where a woman is in receipt of statutory maternity pay. During periods of paid maternity leave, whether the employee is in receipt of statutory or occupational maternity pay, the employer's pension contribution should be based on the employee's normal remuneration. However, if the rules of the pension scheme require the employee to make a contribution, this should be based on the actual pay that she is receiving. Accrual rights are now similarly protected during periods of paid statutory paternity and adoption leave.
Occupational pension schemes and the Pension Protection Fund: From 6 April 2005 defined benefit occupational schemes are required to pay into the Pension Protection Fund (PPF) at a flat rate for every pension scheme member. This is £15 per current final salary scheme member and £5 for deferred members. From April 2006 companies will pay a levy that will be a 20% flat rate and 80% based on the size of the company's deficit and the risk that the company will become insolvent. The PPF is designed to protect schemes that are under funded when an employer becomes insolvent such that members are guaranteed a specified minimum level of pension. The PPF pays compensation to the members of these schemes in lieu of the benefits that would have been payable by the scheme.
The PPF is not a pension scheme, although it receives tax treatment equivalent to that of a tax-privileged pension scheme. It is not, however, able to pay tax-free lump sums.
The Government had previously established a Financial Assistance Scheme to compensate workers who lost income as a result of under-funded pension schemes that started winding up between 1 January 1997 and 5 April 2005. Details of the Financial Assistance Scheme can be found on the Department for Work and Pensions website.
Occupational pension schemes and the Pensions Act 2004: On 6 April 2005 the majority of the measures contained in the Pensions Act 2004 came fully into force. From this date the Pensions Regulator replaced the Occupational Pensions Regulatory Authority (OPRA). It has broader powers than OPRA and a specific remit to enforce the payment of pension contributions.
In addition, business transfers to which the Transfer of Undertakings (Protection of Employment) Regulations 1981 apply are now protected by a requirement that the transferee offer transferred employees who had access to employer-contributed occupational pension provision a prescribed level of pension provision after the transfer. The Transfer of Employment (Pension Protection) Regulations 2005 provide the detail of the contribution requirements to a defined contribution or stakeholder pension scheme and set out alternative options for a defined benefit occupational pension scheme.
2.810 Employees who do not have access to occupational pensions will often pay into a personal pension because of the low level of the State Pension that may be payable on their retirement.
Individuals earning above a certain limit cannot make contributions to their personal pensions from income above the limit. This is calculated as a percentage (dependent on age) of an employee's net relevant earnings. Up until 5 April 2001 contributions to any UK approved personal pension plan were conditional on an individual having 'net relevant earnings'. Since 6 April 2001, following the introduction of stakeholder pensions, individuals have been able to make contributions even where they have no 'net relevant earnings'.
Employers can offer individual personal pension contracts on a group basis as an alternative to occupational pension schemes (Group Personal Pensions). These are based on arrangements entered into between the employer and a pension provider, and are administered by the pension provider.
2.811 Stakeholder pensions are a form of personal pension regulated up by the Welfare Reform and Pensions Act 1999. They are designed to meet the needs of people who do not have access to an occupational pension scheme. Commercial pension providers run the schemes and a stakeholder pension can be sold through a basic advice service introduced by the Financial Services Authority.
Key features of stakeholder pensions are that members must be able to transfer into, or out of, the scheme without penalty, and contributions may be as low as £20. The provider can waive this limit in exceptional circumstances. As of 6 April 2001, an employee can be a member of a tax-approved occupational pension scheme and contribute up to £3,600 to a stakeholder pension plan, subject to certain earnings and employment conditions being met.
Since 8 October 2001 employers (other than those which are exempt) have been required to designate schemes and make them available to employees.
An employer is exempt from the requirement to provide a stakeholder pension scheme to its employees if it meets any of the following criteria:
It has fewer than five employees, including company directors and those who do not meet the conditions to have access to a stakeholder pension scheme. This does not include workers who are not employees, eg self-employed people.
It offers employees an occupational pension scheme which is available to all staff within their first year of service.
It offers a contributory personal pension scheme to all of the employees who would be eligible to join a stakeholder pension scheme (the contributions must equal at least 3% of the employee's basic pay). Such a scheme must contain no penalties for early release and the employer must undertake to administer contributions to the scheme. If the employee makes contributions, they must be no higher than the employer's contribution.
It gives some employees access to a personal pension scheme as set out above, and the remainder access to an occupational pension scheme as set out above.
An employer need not offer a stakeholder pension scheme to all its employees. Those who do not qualify are:
employees who have less than three months' continuous service;
employees who are members of the occupational pension scheme or who have chosen not to join it;
employees who are not eligible for the occupational pension scheme because they are aged below 18 or within five years of the employer's pension scheme normal retirement age;
employees who have earned less than the national insurance lower earnings limit for one or more weeks within the last three months (assessed on a rolling basis);
employees who cannot join a stakeholder pension scheme because of HM Revenue & Customs restrictions (for example the employee does not normally live in the UK and is non-resident).
The duties of an employer that is required to operate a stakeholder pension scheme include the following:
It must designate a scheme from the list of registered schemes held by the Pensions Regulator.
It must consult with (but not advise) those employees who qualify for the scheme, or their representatives, about the scheme which it proposes to designate.
It must inform the scheme provider that it has chosen that scheme, and keep the provider informed of details such as the employees' contribution records and the employer's contribution amounts.
It must inform the relevant employees of the name and address of the provider, and contact details for a named representative.
It must allow the provider to have reasonable access to the workplace.
It must make arrangements to deduct employees' contributions and send them to the scheme provider within strict time limits (19 days after the end of the month in which the deductions were made, irrespective of the employee's pay interval).
It must make payroll deductions if requested, and give employees written information about payroll deduction arrangements. Employees can make fixed deductions or a percentage of their net pay. Contributions to stakeholder pensions are voluntary net contributions, so statutory deductions such as tax and national insurance must be made first. No tax relief is given through PAYE.
It must keep records of payments made to the provider.
A failure to cooperate may result in fines of up to £50,000 being imposed on the employer by the Pensions Regulator.
Employers that make a contribution to stakeholder or group personal pensions are free to promote these schemes to their staff, provided that they do not receive a direct commercial benefit from this promotion.
From 6 April 2005 the stakeholder pension charge cap for new members is based on an annual management charge of 1.5% for the first 10 years that the product is held, after which a 1% annual management charge applies. The cap for existing members remains at 1% of the value of the growth fund.
From 6 April 2005 there is a requirement to move a member's savings to less volatile investments five years before he or she plans to retire. However, members are able to opt out if they so choose and schemes do not have to comply with the requirement until 6 April 2006, so long as the Occupational Pensions Regulatory Authority was notified by 5 April 2005.
2.812
Ensure that you (if not exempt) offer either an occupational pension scheme or a stakeholder pension scheme to eligible employees.
Take specialist advice on how to run and administer any pension scheme.
2.813
Legislation
Pensions Act
1995
Pensions Act 2004
Sex Discrimination Act 1975
Equal Pay Act
1970
Occupational Pension Schemes (Equal Access to Membership) Amendment
Regulations 1995 SI 1995/1215
Occupational Pension Schemes (Equal Treatment)
Regulations 1995 SI 1995/3183
Part-time Workers (Prevention of Less
Favourable Treatment) Regulations 2000 SI 2000/1551
Part-time Workers
(Prevention of Less Favourable Treatment) Regulations 2000 (Amendment)
Regulations 2002 SI 2002/2035
Social Security Pensions (Low Earnings
Threshold) Order 2005 SI 2005/217
Social Security (Deferral of Retirement
Pensions) Regulations 2005 SI 2005/453
Stakeholder Pension Schemes
(Amendment) Regulations 2005 SI 2005/577
Transfer of Employment (Pension
Protection) Regulations 2005 SI 2005/649
Pension Protection Fund (Tax)
(2005-06) Regulations 2005 SI 2005/1907
Cases
Barber v Guardian
Royal Exchange Assurance Group [1990] IRLR 240 ECJ
Bilka-Kaufhaus
GmbH v Weber von Hartz [1986] IRLR 317 ECJ
Preston and others
v Wolverhampton Healthcare NHS Trust and others (No.2) [2001] IRLR 237
HL
Pensions: The Consultation by Employers Requirement (on Department for Work and Pensions website)
Useful article link
2.814
Q105: Who is entitled to a state retirement pension?
All workers who have a sufficient national insurance contributions record during their 'working life' are entitled to a basic State Pension when they reach state retirement age. This is currently 60 for women, but will rise to 65 by 2020. The state retirement age for men is 65.
Q106: What are the rates for the basic State Pension?
From 11 April 2005 the amount of the basic State Pension is set at £82.05 per week for a single person and £131.20 for a pensioner couple. There are different rates of pension for married women and the over 80s.
Q107: What is the Second State Pension?
The Second State Pension replaced the State Earnings Related Pension Scheme with effect from 6 April 2002. It is intended to boost the basic State Pension of low and moderate earners by providing a minimum guaranteed pension, and allowing carers and some long-term disabled people with broken work records to build up additional pension for the first time.
Q108: Are employers obliged to offer an occupational pension scheme?
No, there is no legal obligation to operate an occupational pension scheme although many employers choose to do so. A scheme can be set up to require contributions from employees, or can be non-contributory. Because there is so much legislation regulating the administration of an occupational pension scheme, specialist legal advice should be sought before setting one up. If no scheme is set up, the employer may need to consider a stakeholder pension.
Q109: Is it permissible for an employer to offer a pension scheme only to full-time employees?
No, this would be unlawful under the Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000 unless the exclusion of part-timers could be objectively justified. Furthermore, because equal pay legislation applies to occupational pensions, the exclusion of part-timers from an occupational pension scheme would be likely to constitute indirect sex discrimination against women. Women may also claim parity with men as regards benefits under an occupational scheme and the retirement ages in occupational pension schemes should be the same for men and women performing the same job.
Q110: What options are open to employees if their employer does not offer an occupational pension scheme?
Employees without access to an occupational pension scheme can choose to pay into a personal pension. Employers can also offer personal pensions on a group basis (group personal pensions) as an alternative to an occupational pension scheme. Alternatively, most employees are now entitled to a stakeholder pension scheme if their employer does not provide an occupational pension scheme.
Q111: What is a stakeholder pension scheme?
Stakeholder pensions were introduced under the Welfare Reform and Pensions Act 1999 and are designed for employees who do not have access to an occupational pension scheme. Since 8 October 2001 employers (other than those which are exempt) have been required to designate schemes and make them available to qualifying employees.
Q112: Are employers legally obliged to make stakeholder pension schemes available to all employees?
Employers with more than five eligible employees
that do not provide an occupational pension scheme or group personal pension for
all employees are required to designate a stakeholder pension scheme. Employers
must designate a scheme from a list of registered schemes held by the Pensions
Regulator. 
