04: The stakeholder choice

TPR maintains a register of stakeholder schemes. As at February 2010, there were 46 schemes on the register. The number of registered stakeholder schemes has been declining for a while and many of those that remain apply limits to membership. For example, out of the 46 existing schemes, the TPR says that 34 place restrictions on employer designation.

The choice of designated scheme is important because:

• The employer will not want to be seen as backing a scheme with poor investment performance.
• The shrinking number of schemes means that a wrong choice could lead to the need to designate a new scheme in the future.
• A scheme with poor administration can create ill-feeling amongst contributing employees and extra work for the employer.

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