Group Personal Pension
Group Personal Pension Plans
Group Personal Pensions
Group Personal Pensions(GPP) are simply individual pensions set up via an employer under one pension scheme in order to benefit from lower charges and have the facility for the employer and/or employee to pay into the plan via salary deduction.
A GPP is a type of personal pension where your employer chooses the financial provider on your behalf.
There can be some advantages to contributing to a GPP arranged by your employer:
Your employer will normally contribute to your pension - and if the GPP is offered as an alternative to a stakeholder pension your employer must contribute an amount equal to at least 3%of your basic salary.
If your employer has contributed to your pension and you leave your employment you do not lose the money they have contributed.
Your employer will normally deduct your contributions from your pay and send them to your pension provider.
A GPPP is negotiated with the pension provider on behalf of a group of people and your employer may be able to negotiate better terms than you would get individually - for instance, they may negotiate reduced administration costs.
You may be able to continue making contributions to your pension if you change employers
You are likely to lose some of these benefits if you leave your employer. For instance, they are unlikely to make any further contributions to your pension and you may have to pay higher administration costs to the pension provider.
We have the technology to research the Whole of market on you or your employers behalf to find out if a Group Personal Pension plan is suitable.