UK - The £2.7bn J Sainsbury pension fund has launched its stakeholder pension plan for employees.
Aimed at the government’s target group of low to middle wage earners, the plan has already managed to attract 15,000 subscribers out of those who were not part of the company’s final salary plan.
Pensions manager Geof Pearson said: “Our 15,000 will help with the government’s statistics because they are in the right target earnings group.
“I think we are at the beginning of a movement where we will see stakeholder pensions start to build up.”
He explained that he believed the slow start to stakeholder over the last year could be down to the difficulties larger companies have faced in setting up occupational stakeholder pension plans.
He said: “For big employers to set up a stakeholder there are lots of system problems to sort out, they need a lot of lead time for planning. We intend to offer people the eventual chance to pay 3 or 5% as well as the current 4% and we can’t do that without making changes.”
Sainsbury’s £2.7bn defined benefit scheme was closed to new members in January.
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