Breadcrumb Navigation
The rules for contract and trust-based schemes are largely the same. However, group money purchase pensions continue to be popular among larger employers with a history of trust-based pension arrangements:
- Existing defined benefit scheme – it’s straightforward to add a defined contribution (DC) section within the same trust.
- Good governance practice – a trustee board gives members reassurance that their investments and interests are being looked after, and the choices available to them are appropriate. Trustee boards often identify and address any problems sooner. Decisions can be made at trustee level rather than member level.
- Tax relief – members get full tax relief immediately at source.
Scheme trustees
The scheme trustees make the decisions on pension scheme management, including fund choice. Trustees have a range of responsibilities, including:
- pension knowledge and understanding
- setting up and maintaining internal dispute procedures
- producing a yearly trustee report
- complying with rules on trustee meetings
- complying with Myners principles of good governance
One of our other products may be more appropriate for you and your employees. We recommend you get professional financial advice.
Next steps
If you would like more information you should talk to a financial adviser.
Contact us
Call us on:
0870 60 00 337
If you have a specific question about company or group pensions visit our contact pages.