Almost half (45%) of respondents offer a group personal pension as their primary pension scheme, according to research by Employee Benefits and Nest.
This scheme has typically ranked high with respondents, and the September 2017 Pensions Research report, which surveyed 254 employee, found this year to be no exception.
Although the numbers have fluctuated over the years, GPPs have consistently topped the list of the most commonly offered types of pension schemes since 2005.
Just over one-third (35%) offer a secondary pension scheme for staff. Where organisations offer more than one scheme, it may be that one comprises a historical defined benefit (DB) arrangement, which is now closed to new entrants and/or future accrual. Alternatively, employers may have introduced a second type of arrangement for auto-enrolment purposes for certain sections of their workforce. This is borne out of the results of this year’s research, which show that final salary (DB) schemes and group personal pension plans are the most commonly offered types of secondary plan. This is a slight switch from last year’s research when trust-based defined contribution (DC) schemes and master trusts, such as the National Employment Savings (Nest), were the most popular secondary pension schemes.
Post auto-enrolment, it is unsurprising that membership levels remain relatively high in respondents' organisations. Just under half (48%) say 90% of more of their workforce are active members of their workplace pension scheme, while just under a fifth (18%) say the same of 80-89% of their workforce.
Types of pension scheme offered as a primary plan by respondents
Sample: All respondents (230)
Group personal pension 45%
Trust-based defined contribution (DC) scheme (also known as money purchase) 14%
Master trust (for example, Nest, People’s Pension, Now: Pensions) 9%
Group self invested personal pension 7%
Final salary defined benefit (DB) scheme (closed to new members) 7%
Stakeholder scheme 6%
Career-average DB scheme 5%
Collective DC plan 2%
Other 2%
Final salary DB (open scheme) 1%
Hybird DB/DC 1.3%
Respondents’ pension contribution rates for the majority of staff
Sample: All respondents that offer a primary scheme (209)
1% 11%
2% 6%
3% 10%
4% 5%
5% 18%
6-10% 23%
More than 10% 8%
It varies according to employee contribution 16%
Do not know 4%
The percentage of respondents’ workforce that are active members of their primary pension scheme
Sample: All respondents that offer a primary pension scheme (208)
Fewer than 20% 4%
20-39% 2%
40-49% 5%
50-59% 4%
60-69% 5%
70-79% 13%
80-89% 18%
90% or more 48%