A group personal pension is when an employer makes an arrangement with one pension provider or financial adviser to offer personal pensions to a group of employees. A GPP is a contract-based defined contribution scheme. Each employee has a separate contract with the pension provider or adviser, but the contributions are collected by the employer through payroll.
Under a GPP the employer has to make a minimum of 3% contribution if the employee has been with the organisation for three months or more. The employee makes their own investment selection from the choice of funds offered by the pension provider or adviser.