Stakeholder Staff Pensions

Few dentists have historically offered staff pension scheme arrangements. However, this changed with the introduction by the Government of Stakeholder pensions from 6th April 2001.

Stakeholder pensions provide all employees in non-pensionable employment with an option to arrange a cost effective pension. By October 2001 all employers with five staff or more have to provide a Stakeholder pension facility.

This was an important opportunity for employers to set up one scheme that can cover all employees. The benefits include cost effective administration and a facility to reward key employees. (There is no requirement on the employer to contribute directly to the scheme).

The benefits of Stakeholder include:

• A low cost pension facility for staff
• An opportunity for an employer to gain credit for offering pension facilities
• A tax efficient scheme for rewarding key employees
  

The levels and basis of and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor.

The Financial Services Authority does not regulate taxation and trust advice.