Stakeholder regulations

The final regulations were laid before Parliament at the end of last month. They cover much of the detail of how schemes will work. However, the financial regulatory and tax regimes have yet to be finalised.

Stakeholder schemes will be able to register from October this year and operate from April next year. The requirement on employers to offer a stakeholder scheme comes into effect in October 2001.

All organisations with five employers or more will be required to provide access to a stakeholder scheme unless they already make an occupational pension scheme available to employees. Employers who currently contribute at least 3% of earnings to a group personal pension will also be exempted from the stakeholder requirement.

The regulations are available on the Internet at: www.legislation.hmso.gov.uk/si/si2000/20001403.htm