Amend work-based membership

Work-based schemes

Q: Is the scheme a work-based scheme?

For the purposes of this question, a work-based scheme (for example a group personal pension plan) is one where a direct payment arrangement is in place for one or more members. Essentially this means that at least one employer has paid at least one contribution in respect of one or more members during the latest scheme year for which membership figures have been provided in the scheme membership section.

Direct payment arrangements are arrangements between the member and the employer under which contributions fall to be paid by the employer towards the scheme:

• on the employer's own account (but in respect of the member), or
• on behalf of the member (if the member is making any contributions) out of deductions from the member's pay

Essentially, direct payment arrangements exist where:

• the employer arranges to make employer contributions to a personal pension scheme (under the arrangements), and/or
• the employer arranges to deduct the member's contributions from pay and to pay them across to the pension scheme for the member

If the scheme has previously been in receipt of contributions in respect of a member under a direct payment arrangement, but no contributions have been received during the latest scheme year for which membership figures have been provided in the scheme membership section, then do not count this member as a work-based member.

If the scheme has received contributions in respect of all members under direct payment arrangements, answer “Yes – all members are work-based members”.

If the scheme has received contributions in respect of one or more but not all members under direct payment arrangements, answer “Yes – one or more members are work-based members”.

If the scheme has not received contributions in respect of any members under direct payment arrangements, answer “No”.

Where an employer contributes to an employee’s individual personal pension scheme, even where this has not been set up as part of a group personal pension arrangement, this counts as a work-based scheme.

Differentiating work-based members

Q: Are you able to differentiate between individual members without a direct payment arrangement in place and those members with a direct payment arrangement in place?

The aim of this question is to identify whether you are able to quantify what approximate percentage (for example 70% - 80%) of the members in the scheme are work-based members.

If you are able to quantify how many of the members in the scheme are work-based members then please select "Yes". Please note that we are not currently requesting that you provide this figure, but we may request it in the future.

If you are not able to quantify how many of the members in your scheme are work-based then please select "No".