EXCLUSIVE: 53% of employers offer GPPs as primary pension scheme

GPP primary pension scheme

EXCLUSIVE: The most common primary pension scheme offered by employers this year is a group personal pension (GPP) plan, cited by more than half (53%) of respondents, according to research by Employee Benefits.

The Employee Benefits/Wealth at Work Pensions research 2019, which was conducted during October 2019 among 135 HR decision makers, also found that this type of scheme has retained the top spot since 2005; the large gap between this and the second most popular option clearly demonstrates its stalwart popularity.

Trust-based defined contribution (DC) schemes and master trusts, such as the National Employment Savings Trust (Nest), are the next most common primary schemes, used by 9% and 13% of respondents, respectively.

In previous years, trust-based DC arrangements have tended to be the more common of these two options; this shift could be due in part to the large number of employees that have been auto-enrolled into a master trust by their employer. As at 5 November 2019,all master trusts had achieved authorisation.