Pension Schemes Under the New Employer Duties

A Quality Qualifying Workplace Pension Scheme (QQWPS)
A Qualifying Workplace Pension Scheme (QWPS)

Most schemes will come under the second option with only a few defined benefit (Final Salary) schemes or highly funded Defined Contribution schemes being classed as ‘Quality’ schemes.

A Qualifying Workplace Pension could be:

An existing Defined Contribution or Defined Benefit scheme.
This will need to be audited by an Independent Financial Adviser to make sure it is compliant with the new rules.

National Employment Savings Trusts (NEST)
A government initiative brought in as part of the new legislation to give employers one option to provide pensions for employees.

A Group Personal Pension Scheme
A group of personal pensions managed and administered in conjunction with a provider and ongoing advice from an Independent Financial Adviser.

Self Invested Personal Pensions
Usually taken up by more sophisticated investors, or by the business owners themselves with a wider choice of investments and options.

Executive Pension Plans
Usually provided to Directors and Senior Managers within the company and subject to slightly different rules than Personal Pensions.

One or all of these combinations could form part of the overall pension arrangements within any given company.