Issued: 15 October 2004
Guests at The Pensions Trust's roadshow heard how multi-employer schemes provide an ideal solution to many of the problems of pension provision. Richard Stroud, the Trust's Chief Executive and Chairman of the NAPF's Multi-Employer Schemes Working Group enthused about the possibilities offered by this type of scheme and outlined some of the benefits for employers and employees.
Benefits for employers:
- Controlled costs mean even small employers are able to offer good quality occupational pensions
- Pooling of assets means cost effective investment management
- Cost savings arise from having a single source of actuarial, legal, accounting and administration services for all participating employers
- Recruitment and retention tool
- Suitable for small and large employers alike
Benefits for employees:
- Employer provides meaningful benefits
- Greater security for members and dependants arising from being part of a large scheme supported by a number of employers
- Can assist job mobility
During the presentation Mr Stroud said: "The need for decent pensions is as great as ever. However, many employers are afraid to offer pension schemes, due to the costs and risks and hassles they take on in doing so. Multi-employer schemes are not new, but circumstances have now led to them being a real alternative for employers." He went on to say: "The Pensions Trust already operates industry-wide schemes and has done so successfully for over half a century. These provide easy access to all the services required to operate and support a workplace pension scheme, including administration and trusteeship. By pooling resources, employers of all sizes benefit from economies of scale and are able to offer a level of benefits they may not be able to provide as an individual organisation."
The NAPF Multi-Employer Schemes Working Group
The aim of this initiative, which is supported by the Government, is to achieve a regulatory framework to enable non-associated multi-employer pension schemes to be established and flourish under the new, simplified, tax regime, which comes into effect from 6 April 2006. The Group will consider all current barriers to the development of multi-employer schemes and identify means of removing those barriers to the satisfaction of the Inland Revenue, Department for Work and Pensions and scheme sponsors.
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