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RMI survey uncovers 'shocking' ignorance of pension law

Employers in the retail motor industry are unprepared for the introduction of stakeholder pensions, most do not provide a pension scheme and are oblivious of their legal obligations, according to a new RMI survey.

It found that more than 60% of employers did not offer a pension scheme.

The RMI is offering its own stakeholder scheme. The survey revealed that half of respondents were willing to offer it to employees and many are willing to make contributions.

David Wells, the RMI's pension scheme's secretary, said: "The results of the survey are quite shocking. But they should serve as a warning for employers to act fast. Stakeholder pensions are designed to be simple and inexpensive and our Motor Industry Stakeholder Pension will help RMI members meet their legal obligations."

The survey also found the some employers do not recognise the legal obligation to offer, from October 8, 2001, a stakeholder unless they have fewer than five employees or already offer an appropriate pension scheme to all employees.

The RMI also points out that employees offering a group personal pension must make membership available to all employees within three months of starting work and pay employer contributions of at least 3%. Employers offering a company pension scheme must offer membership within 12 months.

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