Company pensions are designed for people who are working and whose employer wants to make a contribution. The employer may sometimes ask that you also pay into the plan. These contributions are called employee contributions. These are not additional voluntary contributions (AVCs). There are limits to how much the employer and employee can contribute. A company pension plan is set up by trustees (usually your employer) on your behalf.
Providing pension benefits for employees is an excellent way to reward and retain your staff and to demonstrate how much you value their long term commitment to your business. In providing pension benefits you have a choice of a Defined Contribution Group Retirement Plan or a Group PRSA arrangement. Each arrangement has its own distinct benefits, therefore it is important that you obtain professional advice to help you select the most appropriate company pension for you and your employees’ needs.
Key questions to consider:
- If you already have a company pension plan in place, are you confident that you understand the costs and charging structure associated with your scheme?
- Are you confident that you are fulfilling your employer obligations under the current pensions legislation
- If you already have a company pension plan in place, do you know where your money is invested and how the fund has performed?
- Are you confident that your employees will have an adequate pension at retirement?