Clear workplace pension recommendations based on your business priorities, contribution budget and employees’ needs.
What Is a Group Pension Scheme?
A group pension scheme is a workplace arrangement that helps employees save for retirement. It may also be described as a workplace pension, company pension or occupational pension.
Contributions may be made by the employer, the employee or both. The amount available at retirement depends on the type of pension, contribution levels, investment performance, charges and the applicable scheme rules.
How EWM Helps Employers
EWM helps employers make informed decisions about workplace pension provision. Our advice is shaped around the needs of the organisation, its workforce and the outcomes the employer wants the pension arrangement to support.
We can assist businesses that are considering a new group pension arrangement or reviewing an existing scheme. Our role is to clarify the available options, identify the factors that matter to the employer and provide a recommendation that can be understood and considered with confidence.
Once our assessment is complete, we present our recommendation and explain the reasoning behind it, including any important risks, limitations or considerations.
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Which Type of Workplace Pension Is Relevant?
Defined Contribution Pensions – With a defined contribution pension, contributions are invested in an individual pension fund. The amount available at retirement depends on the contributions made, investment performance, charges and how the pension benefits are taken.
This is commonly the most relevant type of arrangement for employers considering a modern workplace pension.
Defined Benefit Pensions – A defined benefit pension provides retirement benefits calculated under the scheme’s rules. These benefits are commonly based on salary and length of service or career-average earnings.
Defined benefit schemes are more frequently associated with public-sector organisations and long-established employer arrangements. They are not normally selected as a straightforward alternative to a defined contribution scheme.
When an Employer May Need Advice – Advice may be appropriate when establishing a workplace pension, reviewing contribution levels, assessing an existing arrangement or considering whether the current scheme continues to meet the needs of the business and its employees.
How We Support Employers With Group Pensions
Scheme Objectives and Contributions
What EWM considers
The purpose of the pension arrangement, the needs of the workforce and the level of employer and employee contributions being considered.
When it may be relevant
When establishing a workplace pension or reviewing whether an existing contribution structure remains appropriate.
Investment and Risk Assessment
What EWM considers
The available investment options, relevant charges, investment risk and historical performance information.
When it may be relevant
When an employer wants to understand the investment choices available within a proposed or existing pension arrangement.
Pension Recommendation and Explanation
What EWM considers
The information gathered during the review, the available pension options and the factors supporting the proposed approach.
When it may be relevant
When an employer requires a clear recommendation supported by professional analysis rather than general pension information.
Why Employers Work With EWM
- Employer-focused advice
- Clear communication
- Established local presence
- Verified client feedback
Research Tools Used by EWM
EWM uses established research systems to support its professional analysis where investment considerations form part of a group pension recommendation.
- FE Analytics – FE Analytics provides access to historical fund and portfolio information. It supports the examination and comparison of relevant investment data.
- Morningstar – Morningstar provides investment research and performance information that can support comparisons between funds and investment approaches.
- Dynamic Planner – Dynamic Planner supports risk assessment and investment analysis. It may also assist with the evaluation of investment preferences and relevant platform options.
These tools contribute to EWM’s research but do not replace professional judgement or guarantee future investment performance.
Group Pension Frequently Asked Questions
- Is a group pension scheme the same as a workplace pension?
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The terms are often used in similar contexts. “Workplace pension” is the broader term for a pension arrangement provided through an employer. “Group pension scheme” commonly refers to an arrangement offered collectively to employees by a business.
- What is the difference between a defined contribution and defined benefit pension?
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With a defined contribution pension, contributions are paid into an individual pension pot and the eventual value depends on contributions, investment performance, charges and how benefits are taken.
With a defined benefit pension, the scheme promises benefits under its rules, often based on salary and length of service.
- What should an employer consider when choosing a workplace pension?
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Employers should consider contribution levels, charges, investment options, provider service, employee needs, payroll compatibility and the level of support available. The most suitable arrangement will depend on the business, the workforce and the employer’s objectives.
- Can an employer contribute more than the minimum amount?
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Yes. Employers may choose to contribute more than the minimum required amount, subject to scheme rules, affordability and current legislation. Some employers also choose to match employee contributions up to an agreed level.
- Can salary sacrifice reduce National Insurance costs?
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A correctly structured salary sacrifice pension arrangement can affect employer and employee National Insurance costs, but it does not apply automatically to every pension contribution and should be reviewed carefully. Rules may also change over time, so employers should take current advice before making decisions based on projected savings.