Business face heavy fines if they fail to set up a pension scheme by October 2001 Every business in the UK with 5 employees or more and no pension provision in place, may face heavy fines if they fail to ensure that staff have access to a stakeholder pension before 8th October this year.
Business face heavy fines if they fail to set up a pension scheme by October 2001
Every business in the UK with 5 employees or more and no pension provision in place, may face heavy fines if they fail to ensure that staff have access to a stakeholder pension before 8th October this year.
Stakeholder pensions were launched by the Government on 6 April this year. Designed to provide simple and affordable pension solutions to all those who currently have no retirement provision, they have a minimum contribution of only Ł20, are very flexible and can be stopped and started at any time.
More than 300,000 small businesses in the UK have between 5 and 20 employees making up 13.8% of the total UK workforce. These businesses range from small accountancy firms and estate agents to public houses, garages, plumbers and electricians.
Employers will face fines up to Ł50,000 if they do not meet the legal requirements. To help ensure employers are complying with stakeholder legislation, Norwich Union, the UK's largest insurer, has produced a straightforward guide, 'Stakeholder Pensions Designation - Employer's support pack', which explains the process in detail. The packs are available to employers by calling 0845 944 4807* or through your independent financial adviser.
Alternatively employers can find everything they need to know on a dedicated interactive website, www.your-pension.com/employer which will also accept designations on-line.
Iain Oliver, Head of Corporate Pensions at Norwich Union commented "We are very conscious that this extra legislation will be a significant worry for small businesses, who have enough to worry about without the added complication of arranging pensions. We want to convey to all those who will be affected, whether electricians, plumbers or mechanics, that they don't need to lose sleep over stakeholder or trawl through tomes of government regulation.
"Norwich Union has created a simple, flexible package for employers that removes all administration headaches. We have a very broad range of stakeholder pension products that were designed with small businesses in mind, offering the added option of Employee Benefits and Contribution Protection. Once employers have designated Norwich Union as their provider, employees will have access to a quality pension product with the UK's largest insurer."
*Calls are charged at local rate and lines are open Monday-Friday, 9am-5pm.
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Notes to Editors
- CGU plc and Norwich Union plc merged on 30 May 2000 to create CGNU plc, the UK's largest insurance group and one of the top-five insurers in Europe with substantial positions in other markets around the world, making it the world's sixth largest insurer based on gross worldwide premiums.
- CGNU's principal business activities are long-term savings, fund management and general insurance, with worldwide premium income and retail investment sales from ongoing business of over Ł27 billion and assets under management of more than Ł210 billion.
- Since October 2000, the combined life and pensions, general insurance and retail fund management businesses in the UK have operated under the Norwich Union brand, while the institutional investment business operates under the Morley Fund Management brand.
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