Q&As

An employee pays into a stakeholder pension and their employer operates a National Employment Savings Trust scheme for other employees and ensures both it and the employees pay in the minimum contribution. However, the employer does not pay any employer contributions into a stakeholder pension. Is the employer required to do so?

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Published on LexisPSL on 15/02/2021

The following Pensions Q&A provides comprehensive and up to date legal information covering:

  • An employee pays into a stakeholder pension and their employer operates a National Employment Savings Trust scheme for other employees and ensures both it and the employees pay in the minimum contribution. However, the employer does not pay any employer contributions into a stakeholder pension. Is the employer required to do so?

An employee pays into a stakeholder pension and their employer operates a National Employment Savings Trust scheme for other employees and ensures both it and the employees pay in the minimum contribution. However, the employer does not pay any employer contributions into a stakeholder pension. Is the employer required to do so?

The obligation on employers to designate and facilitate access to a stakeholder pension scheme ceased to apply from 1 October 2012, when the automatic enrolment regime came into effect. However, unless a relevant exception applies (eg where an employer is notified that a designated stakeholder pension scheme has commenced winding up), employers are under a continuing duty, in respect of relevant employees, to deduct employee contributions to an existing stakeholder scheme from their remuneration and pay them to the trustees/managers of the scheme. For more information, see Practice Note: Stakeholder pension schemes—the legal requirements.

Whether the employer is required to pay employer contributions into the stakeholder scheme depends

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