Group Personal Pensions (GPPs)

A Group Personal Pension (GPP) plan is a collection of individual personal plans grouped together and run by the pension provider. The scheme provider is responsible for the administration of the scheme, rather than the employer.

Employers may wish to offer their employees a Group Personal Pension in order to be exempt from having to give access to a stakeholder pension scheme. To do this the employer must contribute at least 3% of the employee's basic salary. If requested, the employer must also deduct the employee's contributions from their pay and passes them on to the personal pensions provider. In addition, the GPP must have no exit charges.