What is a stakeholder fund?Wed May 23 16:47:00 BST 2018
Stakeholder funds were introduced in April 2001 following Government legislation. They were intended to encourage more long-term saving for retirement, particularly among those on low to moderate earnings. They are required to meet a number of conditions set out in legislation, including a cap on charges, low minimum contributions, and flexibility in relation to stopping and starting contributions.
Auto Enrolment has now superseded stakeholder funds, as it is now compulsory for employers to automatically enrol eligible workers into a pension scheme. However, we will still continue to accommodate all conditions for existing stakeholder funds.