The following Pensions guidance note Produced in partnership with Alistair Hill of CMS provides comprehensive and up to date legal information covering:
The introduction of personal pensions in 1987 was heralded as offering new choices for self-employed and employed individuals.
However, it soon became apparent that the new product could also be marketed to employers. The group personal pension (GPP) product rapidly arose to fill this gap in the market.
At its simplest, the GPP product can be described as a series of individual personal pension plans written under a single personal pension scheme and administered by the product provider for the employees of a single employer or group of employers.
GPPs can thus be described as ‘workplace personal pension schemes’. As a result, certain requirements apply to GPPs which do not apply to personal pension schemes used outside of a workplace context. For instance, GPPs must be governed by independent governance committees (IGCs) (see Group personal pensions—principal legal features below) and restrictions apply in relation to member-borne charges. For further information on the workplace requirements applicable to GPPs, see Practice Note: Personal pensions—an introduction—Features specific to workplace personal pension schemes.
Where the underlying personal arrangements in a GPP happen to be self-invested personal pensions (SIPP), the GPP may be marketed as a group SIPP arrangement.
GPPs are typically marketed and operated very similarly to insured defined contribution (DC) occupational pensions. For example, they
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