From 1 October 2012, section 87 of the Pensions Act 2008 has repealed the stakeholder pension designation requirements. The previous requirement for a UK employer when employing five or more employees was to designate and facilitate access for employees to a stakeholder pension scheme. With the introduction of section 87, this requirement has now been abolished.
Employees who are already members of a stakeholder pension scheme can continue to have deductions made from their salary from October 2012 through transitional provisions being available within the Pensions Act 2008.
With the implementation of the auto enrolment pension scheme being made available from 1 October 2012 for larger employees, the effect of section 87 to the employer is that they will no longer be obliged to provide access to a pension scheme until it becomes subject to the duty to auto-enrol its eligible employees.