For a variety of reasons, access to an occupational pension is an increasingly significant benefit of being in work. Employers who can afford to offer an occupational pension are aware of its importance in recruiting and retaining staff. This section of the Guide outlines the various types of pension schemes ( Types of pensions schemes ) and pension benefits that are available (pension benefits); and the legal (basic legal framework) and taxation (taxation) frameworks within which they operate. It then goes on to summarise the main employment law issues that arise from pension provision.
One of the most important legal issues for employers to consider is how they should frame employees' pension rights in their contracts of employment (contractual issues). In deciding who should be entitled to a pension and on what terms, there are some important principles of sex and disability discrimination law that need to be borne in mind (discrimination in pensions).
In order to foster employee involvement in pensions, the law requires pension fund trustees and managers to provide information on the pension scheme and the benefits it provides (information on pensions). Further, originally an employer with a workforce of 150 or more that was contemplating making certain changes to its pension scheme is required to consult with the active and prospective members of the scheme (consultation on pension changes). This provision was extended to employers of 100 or more from 6 April 2007 and will be extended to employers with at least 50 employees from 6 April 2008. Also, pension scheme members are entitled to nominate and select at least a third of the trustees who are responsible for running their pension scheme. Pension trustees who are employees have the right to paid time off work to carry out their duties, and are protected from being penalised or dismissed for carrying out their role ( Trustees' paid time off ).
Given the complexities of pension schemes, disputes about entitlement may arise. The law requires all pension schemes to have a internal procedure for dealing with disputes between members and the scheme's trustees or managers (resolving disputes).
Reflecting the importance that the Government attaches to pension provision, even employers that do not themselves provide occupational pensions may now be under a duty to provide their employees with access to a stakeholder pension. This section explains which employers are covered by this obligation and what is involved in meeting it (stakeholder pensions).
Other parts of this Guide deal with: