UK - An overwhelming majority of UK small and medium companies will make contributions to stakeholder pensions – despite not being legally obliged to do so, according to UK employee benefits and corporate pensions consultancy firm, PIFC.

The consultant notes that over 95% of stakeholder or stakeholder exempt pension schemes it has recently set up involve employers willingly opting to make some kind of contribution.

PIFC says its findings are based on mandates the firm has won from both existing and new clients seeking advice on schemes before the compliancy deadline in October.

Says Terry Bennett, chief executive at PIFC: ”So far the weight of evidence would suggest that stakeholder is having the desired effect. In most cases employers are making contributions to their employees’ pension schemes, which gives the schemes real credibility. There is no doubt that the stakeholder legislation is extending to private provision in the UK.”