A GSIPP is very much like a group personal pension (GPP) in that it's a pension scheme arranged by an employer where contributions are paid into a fund owned by the employee. The money in the fund is invested on the employee's behalf, and when they retire the fund is used to buy an annuity, which gives a regular income for life, or can be used to provide an unsecured pension (or an alternatively secured pension if they're 75 or over).
However, it's the choice of investments available to the employee that makes a GSIPP different from a GPP. In a GSIPP, members can access all the investment funds they can through a GPP, but they also have the option of using the self-invested element of the plan. Please see 'The self-invested element' for more information.
Contributions
You can choose to make contributions to the scheme, and if your contributions are at least 3% of the employee's basic pay then it will meet your obligations under the stakeholder pension regulations and you won't be legally obliged to provide any other pension plan for your employees. (Please see 'Why choose a GSIPP?' for a list of these regulations.)
Employees can also pay single contributions or transfers into their plan at any time, subject to certain minimum amounts.
Contributions benefit from tax relief at the employee's highest rate.
How it works
Find out what support we give you to help your employees take advantage of the superb range of investments on offer.
Common questions
Want more information? Find answers to some questions you might have.
