From October 2012, government regulation mandates that, in a staggered approach, all businesses in the UK (without exception) must eventually have available a pension scheme into which they must auto enrol all elligible members of staff. Most Group pension schemes can be used for this purpose such as Group Personal Pensions or final salary schemes. If the employer does not wish to use their current scheme or set up a new one, then they can auto enrol their staff into the Government NEST scheme.
Ask yourself, would you prefer a Group Scheme setup and controlled by your company, or would you want to use the default NEST scheme? For most business owners, the answer will be the former – allowing you to turn yet another legislative burden into a useful tool to attract and retain staff.
It’s of huge advantage to all employees to have the option of a group employer pension scheme, as future retirement income is increasingly becoming an issue as the population ages and the government continue to struggle with state pension provision. With present and future state pensions being so low, it is now not an unexpected advantage but almost a mandatory expectation to potential and current employees for their employer to have a pension scheme available.
So we have established the need and importance of employer pension schemes for the employees as it not only improves their future retirement position but increases job satisfaction and, as you well know, a happier workforce, is normally a more productive work force. But what of you the employer? Are there any additional advantages?
We will undertake a review of your company and recommend the appropriate scheme. However one possibility could be a salary exchange whereby your employees will sacrifice part of their salary in exchange for an employer contribution into their pension scheme. This method is very attractive to employees and also has the tax benefit to Employers of savings on National Insurance Contributions.
So if a happier workforce, competitive edge for employee retention and attraction as well as possible tax saving advantages is attractive, contact us for a chat.