Group Personal Pensions: Basics


A GPP is a group personal pension – a personal pension available to an employer’s staff through a group arrangement.

A personal pension will be a DC arrangement. Members are still subject to the LTA and AA and may take 25% as a tax free lump sum. The benefits payable when the member retires are dependent upon the amount of money paid into the scheme and the investment returns and the options available will vary from scheme to scheme.

Charges under a GPP may be lower than under an equivalent individual personal pension plan, as the provider may be able to offer a reduction in their normal charges for groups.