A money purchase scheme designed to provide retirement benefits, mainly for employees or the self-employed. It must be registered with the Pensions Regulator. If an employer with five or more employees does not provide an occupational pension scheme for its employees nor contribute at least 3% of earnings to a group personal pension scheme, it will have to designate a stakeholder pension scheme for its employees and make arrangements for employees' contributions to be deducted from their pay and remitted to the stakeholder scheme provider. The employer is not obliged to make contributions to the scheme.
Related links
multi-employer scheme (multi-employer pension schemes)
stakeholder pension
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.