Read the following passage and match the questions (1-8) with sections (A-E). The sections may be chosen more than once.
Section 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.
Section B. Of the different work pension plans available, the stakeholder scheme has the
A. Section A
B. Section B C. Section C
D. Section D
E. Section E
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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.
Section C. Suppose 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. In that case, 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.
Section 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 the provider does this. The costs for this are deducted from the fund. Annual charges are low, capped at one percent
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