Group personal pension

Every employer, if they have five or more members of staff, must provide a pension facility for their employees. In most cases this comes in the form of an occupational pension scheme which is a large plan set up by the employer for their employees to which they contribute and pay costs.

However, if there's no occupational scheme the employer must either refer their staff to a stakeholder pension scheme or they can offer access to a group personal pension (GPP) scheme.

GPPs are arranged by a pension company, such as a bank or life insurance firm. The employer chooses a scheme they think will suit their staff. The difference between group personal pension plans and individual personal pension is that, because a number of people's pensions are run together, charges are lower. This means more of the pension-holders' money can be invested and then received at retirement.

They have the same rules as personal pension plans and therefore enjoy the same tax benefits. This means you do not pay income tax on the contributions you make and so the 22 per cent of your pension contribution that would usually go to the Inland Revenue is put into the pension pot.

Related Articles

Lloyds has received a £4.3m fine for delays in PPI payouts

Lloyds Banking Group fined £4.3m by FSA for PPI payment delays

The regulator, the Financial Services Authority has fined Lloyds Banking Group £4.3 million for delays in making payouts to customers due payment protection insurance compensation.

Skipton BS launch 2-yr fix at 2.79% for 80% LTV borrowers

Skipton BS launch mortgage partnership with Personal Touch

The Skipton Building Society has launched a two-year fixed rate mortgage deal for 80% LTV borrowers at 2.79% in partnership with Personal Touch Financial Services.

Pension contributions fell in the recession, says the ONS

Personal pension contributions fall by £2billion in recession

New research from the Office for National Statistics (ONS) reveals that less people are saving for their pension as a result of increased pressure on their finances in the recession.

Zopa has cut the rates on personal loans

Zopa cuts personal loan rate to 4.9 per cent

Zopa has leaped to the top of the personal loan best-buy tables by cutting the rate on loans between £7,500 and £15,000 to just 4.9 per cent.

Tesco Bank has cut personal loan rates

Tesco Bank cuts personal loan rates

Tesco Bank has cut personal loan rates across three sectors of the market raising its position in the best-buy tables.

See more related articles

Newsletter sign up


In addition to the weekly newsletter, which areas of finance would you like to hear from us about:

Tick this box if you would like us to send you promotions from carefully selected third parties.

By signing-up you agree to the terms of use and privacy policy.

sign-up button

Get the latest information on: