Group personal pension

Category: Pensions · Reviewed by Tim Roche, Director · PI & Commercial · Last reviewed 2026-06-10

A group personal pension (GPP) is a collection of individual personal pension contracts arranged by an employer for the benefit of its employees on a multi-life basis. Each employee owns their personal pension contract with the provider; the employer facilitates contributions through payroll deduction. GPPs satisfy the qualifying scheme requirements of auto-enrolment and are widely used by mid-market employers as their workplace pension vehicle.

Category: Pensions Also known as: GPP Regulated by: FCA (provider conduct), TPR (auto-enrolment) Related concepts: GPP, Defined contribution pension, Workplace pension, Group stakeholder pension

Definition

GPPs are personal pensions (regulated by the FCA under the Financial Services and Markets Act 2000 as personal pension schemes) marketed and administered on a group basis. The employer plays no trustee role; the employee’s contract is directly with the provider. Members benefit from competitive group-level charges negotiated by the employer or its adviser.

Legal / Regulatory basis

GPPs are personal pension schemes registered under Part 4 of the Finance Act 2004 and regulated by the FCA. They are not occupational pension schemes and the trust law requirements of the Pensions Act 1995 do not apply. However, they are workplace pensions for the purposes of auto-enrolment under the Pensions Act 2008. The FCA Independent Governance Committee (IGC) regime under PS15/3 requires providers to have an independent committee monitoring value for money.

Scope of cover

GPPs provide DC accumulation in funds selected by the employee or in the provider’s default lifestyle fund. Most providers offer a wide investment range; charges are usually capped at the FCA charge cap of 0.75% per annum on default funds for auto-enrolment members. Decumulation options are full personal pension flexibility (annuity, drawdown, UFPLS) under the freedoms introduced by the Taxation of Pensions Act 2014.

Practical example

A 100-employee firm uses Aviva’s GPP as its workplace pension. Charges on the default fund are 0.35% per annum (below the cap). Auto-enrolment contributions of 5% employee + 3% employer (statutory minimum) are paid via payroll deduction direct to each employee’s GPP contract; employees have the option to increase contributions and to select different funds.

See also

• GPP
• Defined contribution pension
• Workplace pension
• Group stakeholder pension
• Master trust pension

References

1. Finance Act 2004, Part 4 — https://www.legislation.gov.uk/ukpga/2004/12
2. Pensions Act 2008 — https://www.legislation.gov.uk/ukpga/2008/30
3. Financial Conduct Authority, PS15/3 — Independent Governance Committees
4. Taxation of Pensions Act 2014 — https://www.legislation.gov.uk/ukpga/2014/30
5. The Pensions Regulator, Detailed guide for employers — https://www.thepensionsregulator.gov.uk

This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.

Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.