12 October 2012 #Employment
The DWP has brought into effect section 87 of the Pensions Act (PA) 2008, repealing the stakeholder pension designation requirements from 1 October 2012.
Section 87 of the PA 2008 came into force by a statutory commencement order made on 27 September 2012. This now means the previous requirement for a UK employer employing five or more employees to facilitate access to a stakeholder pension no longer exists.
However employers will note that transitional provisions will allow them to continue deducting contributions from the salary of an employee who is an existing member of a stakeholder scheme after 1 October 2012. If an existing member requests that his employer stop the deductions, the employer must inform the employee that it is no longer required by law to deduct contributions and pay these to the scheme on his behalf, but that the employee can still make payments directly to the scheme, provided this is permitted by the scheme rules.