Provisions repealing the stakeholder pension designation requirements came into force on 1 October 2012 under the Pensions Act 2008 (Commencement No.14 and Supplementary Provisions) Order 2012.
What does this mean?
Previously employers employing five or more employees were required to provide their employees with access to a designated stakeholder pension scheme. This requirement has now been abolished. As a consequence employers will no longer be obliged to provide access to a pension scheme until their staging date for automatic enrolment.
What should employers do?
Employers can still deduct contributions from the salaries of employees who are already members of a stakeholder scheme. If an existing member asks his employer to stop making deductions, the employer is required to inform the employee that it is no longer required by law to deduct contributions and pay these into the scheme on his behalf, but that the employee may still be able to make payments into the scheme, as long as the scheme’s rules permit this.