Pertemps launches new pension scheme for temps

As the Government urges people to save money for their retirement, Pertemps (the country's leading independent recruitment agency) is one of the first recruitment agencies to launch a pension scheme for temps.

Although firms are not obliged to provide pensions for temps, Pertemps has teamed up with insurance firm Axa to offer its own Government approved stakeholder pension scheme to all its temporary workers from 1st April 2001.

Tim Watts, chairman of Pertemps, said that Pertemps is providing pensions for temps as they recognise how important it is for individuals to plan financially for their future.

"Many people are realising the need to start saving for their retirement from an early age. However, temps have often missed out on company pensions because of the nature of their working contracts. We are delighted to have formed a partnership with Axa to give temps a straightforward, cost-effective scheme."

From April 1 2001, most companies will be legally obliged to offer their permanent employees a pension scheme. Axa is one of a handful of firms that have been given official approval to run a Government stakeholder pension plan.

The stakeholder scheme offers a cheap, simple pension aimed at people earning between £10,000 and £20,000. There are no initial charges and annual charges are capped at one per cent. Employees can contribute anything from £20 to £300 per month, and they earn full tax relief on their money.

In addition to the new stakeholder plan, changes are also being made to Pertemps' existing pension scheme for permanent employees. The pension is currently open to people who have been employed by the firm for more than a year. However, this will change on April 1, enabling people to join the scheme as soon as they start working for the company.