The EPP can give you plenty of choice and flexibility as to where you invest your money. Generally, there‘s more on offer than you might find with a personal pension or standard company pension scheme.
Executive pension plan principles
How is an EPP different to other pensions?
If you’re running a small company or want to offer a pension scheme that’s a bit different, perhaps for managers or directors then the EPP fits the bill. You could also run a separate pension scheme alongside the EPP for your other employees to meet the auto-enrolment requirements.
Your Company sets up and runs the EPP itself, but it makes sense to seek help from professional advisers for the investment choices and those dreaded administration tasks. There’s a fair few pension regulations and laws to follow and so the EPP has scheme trustees to look after matters. They make sure the scheme is properly run and that your money is invested suitably. You might prefer to set up a simpler pension scheme if the thought of the EPP sends you running for the hills.
As an EPP member you will probably be asked to contribute a certain amount into the scheme. You can pay in extra amounts to your plan if you wish and these are called Additional Voluntary Contributions (AVCs).
Where do my savings get invested?
Is an EPP right for me?
If you work for a small company that wants to offer a different pension scheme for a select number of employees then the EPP could be right up your street. Before you jump in remember that setting up and running an EPP is more complicated and costlier than taking out a personal pension or a typical auto-enrolment scheme.