To help you get started we can provide you with:

• A letter to help you consult with your employees about choosing the scheme
  
• Material to help you communicate the importance of a stakeholder pension scheme to your employees in the clearest possible way
  
• Access to our informative and regularly updated website.

Simply call our Customer Service Centre 0845 070 6666*, if you would like any of this material.

*Calls may be monitored or recorded for quality and security purposes. Lines are open between 9am and 7pm Monday to Friday and 9am and 1pm Saturday.

The annual management charge will not exceed 0.85% of your fund, well below the 1.5% maximum the Government has set. This reduces to a maximum of 1.0% if the member has been in the scheme for more than 10 years.

* The annual management charge may vary in the future and may be higher than it is now. Further details can be found in the policy document.

• You and your employees can pay on a weekly, four-weekly, monthly, yearly or one-off basis.
  
• You and your employees can increase, decrease, stop or restart payments at any time - the charges will continue even if you stop regular payments. Our charges may vary in the future and may be higher than they are now.
  
• Payments can begin from a £10 regular or one-off payment.
  

• The government limits the amount that can be contributed every year before suffering tax penalties. This is called the Annual Allowance. It also limits the total amount they can receive in pension benefits over their lifetime before suffering tax penalties. This is called the Lifetime Allowance.
  
  Annual Allowance
  
  If, in any tax year, the total payments into all your employees' pension plans exceeds the Annual Allowance, an Annual Allowance tax charge of 40% on the excess amount will be payable. The Annual Allowance for the next two tax years is:
  

  Tax year	Annual Allowance
  2009/2010	£245,000
  2010/2011	£255,000

  The Government will review the Annual Allowance on an ongoing basis, but have confirmed that it will stay at £255,000 for the five tax years starting from 2011/2012. The annual allowance doesn't apply in the year they take all benefits.
  
  If your employees are also a member of a salary related company pension scheme, any increases in the value of their pension under that scheme will also count towards the Annual Allowance.
  
  Lifetime Allowance
  
  If the value across all your employees' pension funds exceeds the Lifetime Allowance at the time they take their benefits, a tax penalty will be payable on the excess amount. The Lifetime Allowance for the next two tax years is:
  

  Tax year	Lifetime Allowance
  2009/2010	£1.75m
  2010/2011	£1.8m

  The government will review the Lifetime Allowance on an ongoing basis, but have confirmed that it will stay at £1.8m for the five tax years starting from 2011/2012. If you think your employees might be affected by the Lifetime Allowance, they should speak to a financial adviser as soon as possible.

We offer your employees the following payment options.

• Direct Debit. This is an easy way for your employees to pay, and if you do not intend to contribute to your employees' stakeholder pensions it might be the simplest solution for you.
• Straight from their pay (payroll deduction). If your employees ask for this, you must enable them to do it. We recognise this is one of the most complex parts of setting up your stakeholder scheme so if you would prefer to call us, we will explain everything.
• Cheque

Employers - payments are a deductible business expense. Your tax advisers will have full details.

Employees - The basic rate is 20%.  This means that for every £100 your employees pay into the plan HM Revenue & Customs will pay an extra £25 into their plan. If the employee is a higher rate taxpayer, he will be able to claim back the extra tax relief from HMRC at the end of the tax year. Tax relief will normally apply up to £3,600 or 100% of earnings (up to a maximum of the Annual Allowance) if greater. Please note your pension will be taxed as earned income.

• Pension benefits may be taken at any age between 50 and 75. Under the new rules the minimum retirement age is to change from 50 to 55. This comes in to effect in 2010. Anyone unable to work because of ill-health may still be allowed to take their pension benefits before the minimum retirement age. 
• Pension payments can remain the same each month, increase each month at a flat rate or increase in line with the Retail Price Index.
• There is a standard limit on tax free cash: a maximum of 25% of the plan value. Someone who is terminally ill may also be able to take their entire pension as a tax free lump sum.

Life cover is only possible if there are regular employer contributions being paid and the full life cover cost can be deducted from these.

• The cost of any life cover employees choose will normally increase each year as they get older.
  
• In the event of your employees' death life cover would be paid in addition to the full value of their plan. If the lump sum paid at death, together with the value of all your employees pension benefits payable, is greater than the Lifetime Allowance then they will be subject Lifetime Allowance Charge of 55% on the excess amount, if taken as a lump sum. 

If regular payments into the plan stop, or are suspended, your employees' life cover will end. If regular payments are reduced, their life cover may also have to be reduced.

With the TUC Stakeholder Pension Scheme, your employees can make the most of their savings. The Scheme offers a range of investment options with a choice of twelve funds, which are described in the document " A Guide to Fund Options". Your employees can invest money in just one of the funds, or split payments* between more than one fund.

The Lifestyle option, managed by Prudential M&G, is our default fund so if your employees don't choose, we will invest their payments in this. Find out more about this option in the TUC Fund Brochure.

Your employees can switch funds by phone, by post or by the web - For more information on funds please refer to the document "A Guide to Fund Options".

The value of an investment may go down as well as up and your fund value in the future may be less than the payments you have made.

Please note: * does not apply to the Lifestyle option

The above is based on our understanding, as at August 2009, of current taxation, legislation and HM Revenue & Customs practice, all of which are liable to change without notice. The impact of taxation (and any tax reliefs) depends on individual circumstances.