Pensions from Newcastle Independent Financial Advisers

Amethyst IFA

83 Howard Street
North Shields
Tyne and Wear  NE30 1AF

0191 257 6704 0191 257 6256 Mon - Thurs 9am to 5pm
Friday - 9am to 4:30pm

Group Personal Pensions

What is a GPP?

A group personal pension plan (GPP) is a collection of personal pension plans (PPPs) provided by an employer for its employees. A PPP is a type of defined contribution arrangement.

It is essentially an investment policy that provides an income in retirement. It is available to any UK resident and can be bought from insurance companies, high street banks, investment organisations and some retailers (i.e. supermarkets and high street shops). The policyholder contributes to the plan, the money is invested and a fund is built up. The amount of pension payable when the policyholder retires is dependent upon:

  • the amount of money paid into the scheme;
  • how well the investment funds perform; and
  • the 'annuity rate' at the date of retirement. An annuity rate is the factor used to convert the 'pot of money' into a pension.

The policyholder can retire at any age after age 55 (subject to plan restrictions). When the policyholder does retire, they can generally take up to 25% of the value of their fund as a tax-free lump sum. The remainder of the fund can also be taken as a lump sum or series of smaller sums but will be taxed at your marginal rate.

Auto enrolment

Automatic Enrolment is a key part of the Workplace Pension Reform, it means UK employers need to automatically enrol certain members of the workforce into a pension scheme, and employees need to make a contribution towards it. The law has already come into force for large employers and smaller employers will have to follow suit and every employer must comply. Workers will automatically be enrolled into a workplace pension scheme if they:

  • are aged between 22 and State Pension age
  • earn more than £10,000 a year
  • work in the UK

An employer will be giving a staging date which is when your employer's enrolment duties come into force. This is based on the total number of employees in the firm. If you are not already enrolled into a workplace pension then please speak to your employer for further information about the firm's plans.


What distinguishes a GPP from an individual personal pension plan (PPP) is that the charges levied by the provider under the GPP may be lower than under the equivalent PPP. The provider, because they are dealing with bulk business, may be able to offer a reduction in their normal charges.

More than 25% may be available as a lumps sum but at the individuals marginal rate.

If you would like further details please contact us.

A pension is a long term investment. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

The value of your investment and income from it is not guaranteed it can go down as well as up due to fluctuations in investment markets, and you may not get back the full amount invested.

Levels and bases of and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor.

The Financial Conduct Authority does not regulate taxation advice. We are entered on the Financial Services register No 623925

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amethyst IFA Paul Richardson Alan Dennett Malcolm Butters Liz MacBride Keith Wilkinson Stephen Anderson Karen Chapman