Time is fast running out for companies that have not signed up to the government’s stakeholder pension scheme.
Those that fail to meet the October 8 deadline could face fines of up to £50,000.
All employers with five or more employees will have to provide staff with access to a stakeholder pension scheme. But according to figures from Barclays and Legal & General, while 85% of companies are aware of stakeholder pensions, only 52% have said they intend to put one in place.
Mike Smith, business communication manager at Legal & General, said: ‘We did a survey of how many construction firms had heard of stakeholder pensions and 84% said they were aware.
‘We also asked how many intended to offer a scheme, and 32% said they intended to do so. A further 29% said they had already offered their staff access to a company pension scheme.’
Clive Garrett Sadler of Blandford Timber of Dorset set up a stakeholder scheme six months ago on the advice of his pensions adviser. He said: ‘There hasn’t been nearly enough information and many people might get caught out.
‘I sympathise with companies that have not taken out a stakeholder scheme as it is just another imposition on small businesses, asking them to cover the shortcomings of this government.
‘I find it ironic that the whole essence of the requirement is to cover a shortfall.’
Frank Aylott of FW Aylott in Essex agrees. ‘We have around 35 employees and it has cost us a lot of money setting up a stakeholder scheme. I find all this legislation just another nail in companies’ coffins and it doesn’t get cheaper. It is another job for someone to administrate when they could be getting on with something else.’
