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Administration costs are deducted from the individual?¦s pension fund. The total employee/employer contributions must be within permitted contribution levels.
Advantages
?X Contributions are optional for employers.
?X It?¦s transferable.
?X There is tax relief for approved schemes.
?X Can be tailored to the individual employer...
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g. if an employee stops making contributions or decides to switch pension schemes.
?X Employees have to fund the whole of the pension by themselves if there is no employer contribution.
Stakeholder Pension Scheme
This scheme?¦s annual charges are at a certain percentage of the total fund. A member, after paying the minimum contribution, can transfer in and out of the scheme or stop payments without a penalty...
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