Stagecoach Group has become the first major employer to ditch its stakeholder scheme and use a group Sipp as its default option for employees.
Hargreaves Lansdown will provide the group Sipp as the default for all new employees.
The existing 10,500 Stagecoach staff currently in the firm’s stakeholder scheme or without provision will also be offered the option to move into the group Sipp.
GlaxoSmithKline recently became the first FTSE 100 company to offer employees the option to move into a group Sipp but Stagecoach is the first big employer to offer this as the default.
It will continue to run both its closed and open defined-benefit pension schemes.
Richard Jacobs Pension & Trustee Services director Richard Jacobs says: “I think it is great news. In the past, I have been critical about group Sipps but we now have models that are working. I do think bigger employers will increasingly consider group Sipps.”
A Stagecoach spokesman says: “It is generally recognised that stakeholder schemes can be inflexible while Sipps offer flexibility and convenient online access.”