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Obligation to pay into private pension?

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My company runs an auto-enrolment scheme with a pension provider we have chosen. We have a new employee due to start and they have asked if we can pay into their private scheme instead. Does anyone have any advice on whether we are legally obliged to do so or can we just say its our scheme or the highway?

 

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13th Jun 2019 11:59

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13th Jun 2019 15:28

The employer chooses the scheme. Would be a nightmare if an employer had to pay a different company for each employee!!

I would also check that the scheme is approved by the pensions regulator and perhaps do some due diligence on the likely investment vehicles offered as well:

https://www.thepensionsregulator.gov.uk/en

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By nrw
13th Jun 2019 19:03

Many simple money purchase company pension schemes (eg L&G) allow employees to easily and inexpensively (freely?) transfer their pension to a third party provider - so the simplest solution is to choose a flexible scheme in the first place which allows this. The employer then pays into one scheme for all employees, and they can manage themselves (online) from there.

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