Industry oblivious to pension fine threat

Almost half of all UK hospitality firms are still unaware they must provide stakeholder pensions for their staff by October. And a further 20% (6,800 employers) do not want to think about it until the last minute, risking fines of up to £50,000.

A survey by pension provider Virgin Direct showed that the industry could be handing the Government £340m in fines if employers failed to meet the deadline. It found that 5% (1,700) of hotels and restaurants had stakeholder schemes in place, compared with a UK average of 42%, making the hospitality sector the worst provider of stakeholder pensions (Caterer, 19 July, page 4).

Companies employing five or more staff must, by law, set up stakeholder pension schemes by 8 October. Virgin Direct's marketing manager, Gordon Maw, said: "The clock is ticking. Those who leave it to the last minute may not be able to set up a scheme in time and could receive a hefty fine."

A spokesman for the Federation of Small Businesses said: "The Government must take some of the criticism for there being such low awareness."

by Ben Walker

Source: Caterer & Hotelkeeper magazine, 30 August - 5 September 2001