Coda has launched a group self-invested personal pension (Sipp) in order to offer employees greater investment choice.
Previously, staff could choose from a range of 100 fund options available through the financial management firm’s group personal pension (GPP) plan. The new Sipp, which is due to launch early this month, offers access to 1,500 investment funds as well as the ability to trade in stocks and shares from most major stock exchanges.
Dave Belmont, group company secretary, said that there had been employee demand for additional choice. “We’ve been under increasing pressure from a number of people saying ‘these 100 funds are [limited]’. While this level of choice can be sufficient for many, we also have quite a few staff who have a lot of money to invest and are quite young so want to push the boat out.”
Last month, all employees were also given permission by HM Revenue & Customs to take shares held in the CodaSciSys share incentive plan (Sip) as good leavers, rather than having to hold these in the plan for the full five year term in order to qualify for the available tax advantages. The plan closed to new contributions in August 2007, ahead of Coda’s demerger from SciSys last September.
Belmont added that the 170 staff affected would now be able to transfer these shares into the new Sipp within 90 days of receiving their share certificates if they wish.
For this reason, the Sipp was initially communicated to this group of staff, before the remainder of employees were told.
Staff can also transfer funds held in their GPP into the Sipp.