Origen is introducing a partnership pension scheme to enable employees of its corporate clients to transfer shares from employer share incentive schemes into their pensions.
The scheme uses new rules which enable employees to make in specie transfers from their partnership share schemes. These are HM Revenue & Customs-approved savings plans where employees buy shares in their company from their gross pay.
The PPS works through the framework of a group Sipp. On the fifth anniversary of the share save scheme the employee pays an in specie contribution into the group Sipp by transferring all or some of the company shares. The Sipp will reclaim the basic-rate tax relief and this will be added to the employee’s fund. The employee can then claim the higher-rate tax relief via his tax return.
Origen head of self administered pensions Claire Court says: “The benefits for an employer running a PPS is that it will help the employee build up his retirement savings and it is administered simply as the contributions will be paid at the same time for all employees.”