Stakeholder pension schemes before 1 October 2012 [Archived]
Produced in partnership with Alistair Hill of CMS
Stakeholder pension schemes before 1 October 2012 [Archived]

The following Pensions guidance note Produced in partnership with Alistair Hill of CMS provides comprehensive and up to date legal information covering:

  • Stakeholder pension schemes before 1 October 2012 [Archived]
  • Definition of stakeholder scheme
  • Exemption from stakeholder requirements
  • Relevant employees
  • Eligibility
  • Employer obligations
  • Contributions
  • Requirements for registration as a stakeholder pension scheme
  • Permitted charges
  • Regulation and enforcement of stakeholder obligation

ARCHIVED: This Practice Note has been archived and is not maintained.

With effect from 8 October 2001, the Welfare Reform and Pensions Act 1999 (WRPA 1999) introduced an obligation on employers with five or more employees to designate and facilitate access to a stakeholder pension scheme.

The obligation on employers to designate and facilitate access to a stakeholder pension scheme (as set out in the WRPA 1999, s 3) ceased to apply from 1 October 2012, when the obligation to enrol workers automatically into a qualifying scheme (introduced by the Pensions Act 2008) came into effect.

However, unless a relevant exception applies, employers are under a continuing duty in respect of relevant employees to deduct employee contributions to a stakeholder scheme from their remuneration and pay them to the trustees or managers of the schemes. In addition, any existing or new stakeholder pension schemes must continue to be operated in accordance with the statutory requirements in relation to such schemes eg in relation to registration and cost.

This Practice Note provides an introduction to the statutory framework and operation of stakeholder pension scheme before 1 October 2012. For further information on the current legal requirements relating to the establishment, maintenance and winding-up of stakeholder pension schemes, including the specific legal requirements that apply to trust-based stakeholder pension schemes, see Practice Note: Stakeholder pension schemes—the