Newspaper article The Journal (Newcastle, England)

North Firms Break Law on Pensions

Newspaper article The Journal (Newcastle, England)

North Firms Break Law on Pensions

Article excerpt

Despite companies with more than five employees being legally obliged to offer staff a stakeholder pension, 81% of small to medium-sized businesses in the North-East are failing to comply, according to Bibby Financial Services.

Employers are exempt from doing so if they provide employees with access to an occupational or personal-pension scheme.

However, none of the regional owners and managers provides employees with access to a personal pension scheme, while just 10% have an occupational scheme.

Of those owners and managers who provide employees with contributions to their pension fund, 20% favour contributing to an employee's private pension plan rather than setting up a group personal pension scheme for employees.

However, when it comes to planning for their own retirement, 43% of North-East owners and managers make regular payments into a private pension scheme and 37% also invest in property to fund their retirement.

Bibby Financial Services' spokesman Glen Callander said: "For busy owners and managers with many roles to juggle as their businesses flourish and grow, the problem with the setting up of a pension scheme often lies with the administration and cost involved, rather than a lack of goodwill towards the wellbeing of employees and their future provision. …

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