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GPPs set to benefit from &#39restricted&#39 stakeholder

Scottish Equitable is pred-icting that difficulties over providing

stakeholder plans could tip the balance in fav-our of group personal

pens-ions for many employers from next April.

The life office believes the restrictions and conditions surrounding

stakeholder will lead to a very limited uptake among smaller and

medium-sized employers. It suggests many will opt to take the GPP route

when planning pension provision for their staff.

From next year, all employers with five or more staff must offer their

employees access to some form of pension.

Pensions development director Stewart Ritchie says there are a number of

issues which tip the balance towards GPPs.

He cites the problem of not being able to offer a true with-profits fund

under stakeholder as one area of contention, claiming it is a “natural

investment choice for many investors”.

He also highlights how the employer has to consult staff and potentially

trade unions before adopting a stakeholder scheme whereas this is not

necessary for a GPP.

Ritchie believes decision trees could also hold pitfalls if they fail to

provide clear guidance. By providing a GPP, employers can avoid this

problem as individual advice is part of the overall package.

Ritchie says: “Stakeholder is being loaded up with hassle, particularly

from a small or medium-sized employer&#39s point of view. The restriction the

Government is putting on stakeholder means that for many employers the

easier and better choice will be to opt for a GPP.”

GPP opportunity, p58


MD is head over heels as Wentworth Rose turnover leaps by 64%

Turnover at retirement specialist IFA Wentworth Rose rocketed by 64 percent last year.For the year ending April 30, turnover in terms of fees and commissionincreased to £3.93m from £2.39m the previous year.The company says the success of its annuity and drawdown service made asignificant contribution to the year-end figures.Launched last year, the service has added […]

Chelsea account deal aids Shelter

Chelsea Building Societyis supporting the homeless by donating £1 tocharity each time someone opens a new instant access investment account.For every Call-Direct Account opened until September 16, the society willdonate£1 to Shelter.The account pays a variable rate of 6.8 per cent, with a guarantee thatthe rate will not fall below the Bank of England base […]

Ludgate brand to go as it joins with sister firm

PR firm Ludgate Communications will cease to exist as a brand in thefinancial services sector following a merger with sister company GolinHarris.The company is also losing four members of its public affairs division,who resigned after failing in their bid for a management buyout. The fourare public affairs division managing director Stephen Locke, deputymanaging director of […]

Hague in bid to alter stakeholder

Tory leader William Hague has tabled a House of Commons motion calling forthe annulment of the Government&#39s stakeholder pension regulations.The move by the Conservatives is seen as the party&#39s last opportunity toensure its concerns about the proposals are raised. The Tories say becauseof the way stakeholder has been introduced by the DSS, it will not […]


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