BECTU stakeholder scheme

BECTU is to become one of the first UK trade unions to establish a stakeholder pension scheme.

The new BECTU scheme will be particularly attractive to freelances as well as employees, the self-employed and those not currently in work.

The union believes that its members must have access to a good quality pension scheme that meets the range of their needs.

Stakeholder pensions are being launched by the UK government in April 2001, and are intended to give individuals access to simple and flexible pensions. Employees after next April will have to ensure that all employees who are not in an occupational pension scheme have access to a stakeholder scheme.

The new BECTU scheme resulted from the union appointing a specialist to research the market and subsequent appointment of CGU as the stakeholder pension provider.

Although stakeholder pensions will not be fully available until next April, further details will be provided next month (October) to enable employers to plan how they will comply with the new legislation.