Master Trust Pensions – have you been duped?
As the months roll by and the smaller employers reach their staging dates, the need for them to sort out their Workplace Pension arrangements becomes a lot more urgent.
At THP, we are painfully aware that despite numerous warnings many small employers will either leave it until the last minute to put a qualifying scheme in place or worse still, miss their statutory deadline altogether and start incurring large fines.
With all the recent TV advertising and promotion including that large obese honey monster thing sidling around a park interfering with people, any business owner who remains blissfully unaware of their obligations to sort this out must surely have been living on another planet.
So hands up if you saw Dispatches on Channel 4 last night entitled “Is your pension safe?”
10 million new people in the UK mainly working for small companies are being signed up to these new style pensions under auto enrolment. The majority of small and micro-businesses are opting for an apparently easy and cheap solution when choosing which company to use for their pension scheme. These are known as “Master Trust” arrangements and when it comes to deciding who can set one of these arrangements up, the bar has been set far too low.
All you have to do to apply to run such a scheme is make a declaration to the following:-
- Declare you are a “fit and proper person” (that’s all of us then!)
- Declare you are not a tax fraudster
- Confirm you have no criminal conviction for dishonesty
- Declare that you are not bankrupt
There are no checks to ensure that applicants have any expertise in running a pension scheme or sufficient financial backing and resources behind them.
You can read the full story here:-
If you are one of those small employers who have still to sort your Workplace Pension then please don’t leave it until your staging date.
Call us now and we will put you in touch with Laurence or Jon from Sterling and Law, our IFA and specialist Auto Enrolment experts who will help ensure that you choose a pension company for your Workplace Pension that doesn’t go bust or where the directors run off to the Bahamas or the south of Spain with all your hard earned money.