Group personal pension arrangements: not as hands-off as they seem?

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By Georgina Wardrop

Businesses have become used to seeing group personal pension arrangements (GPPs) as the simple option for their employees, with the employer’s involvement in practice often being limited to the initial selection of a provider. The decision is frequently made on grounds of administrative ease.

This is in contrast with occupational pension schemes, where a body of trustees has an ongoing fiduciary duty to act in the best interests of the beneficiaries. Employers must liaise with the trustees on various matters and either company personnel must be spared from their usual work when carrying out trustee duties or a professional trustee must be paid to take on the role.

The level of involvement required by businesses in GPPs is likely to increase in the future, as the government is turning its attention to the quality of defined-contribution pension schemes offered by employers, including GPPs…

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