Reading Matching
Match the correct information from the text (1-8) with paragraph A, B, C, D or E.
1. In the future, companies will have to put money into their workers' pensions.
2. Employers don't need to do much paperwork for the stakeholder pension.
3. A pension from a trusted company might not give high returns.
4. Employers with only a few workers don't have to provide a pension.
5. People paying into stakeholder pensions could lose money if investments do badly.
6. Some jobs may not allow workers to join certain pension schemes.
7. Companies of any size can get tax benefits for paying into staff pensions.
8. When a company has more than a certain number of workers, it must offer a pension.
A. Businesses are not currently obliged to provide a workplace pension scheme, but the
2008 Pensions Act requires employers to have a qualifying pension arrangement in place
from 2012. Employers will be obliged to automatically enrol jobholders onto the scheme
and make a minimum contribution to the arrangement. Providing a workplace pension
scheme has a number of benefits. There is income tax relief available on both the
employer's and employees' contributions, and where the employer is a corporation.
corporation tax is also available.
B. Of the different work pension plans available, the stakeholder scheme has the minimum
standards. Under this scheme, the money contributed is used to buy investments, and the
investor must be prepared to lose out if these investments do badly. The benefit of this
scheme is that it is flexible in that if employees change jobs, they can continue to make
contributions to the scheme, although any payments the employer makes will cease.
Employees can also make irregular or low payments with no penalties.
C. If a business has more than five employees over the age of eighteen who earn more
than the lower earnings limit, and offers no other pension arrangement, it must offer its
employees access to a stakeholder pension. If the company has four employees and
takes on a fifth, all employees must be given access to a plan within three months of the
fifth employee's recruitment.
D. The company need not make any contributions, but must offer its employees a payroll
deduction facility. If the employer does contribute, a condition can be set up that the
employee also contributes. Employers must keep a record of any payments they make, but
beyond this, the scheme requires no administration, as this is done by the provider. The
costs for this are deducted from the fund. Annual charges are low, capped at one percent
of funds.
E. Stakeholder pensions are available from a number of banks and other financial service
providers, and it pays to shop around. Find a reputable pension provider which is
registered by the Pensions Regulator. Although a well-established firm is preferable, past
performance is not a reliable indicator of future returns. Also make sure that your pension
all your employees can join the scheme as some limit membership to people working in
certain trades.
Number(1,2,3...)
Match question 1/1
Letter (A, B, ACD....)
