Increasing pension contributions through salary sacrifice

One relatively pain-free way for staff to increase their pension contributions is through salary sacrifice. Ian Bird, senior partner, Foster Denovo, details what this involves for employees and employers, and points out the downsides. 

• Increasing pension contributions through salary sacrifice 2012 will see a huge change in the pensions landscape. In an attempt to find a long-term answer to the UK's pension crisis, the Government is introducing Personal Accounts, a new national scheme. 

Also

A guide to dealing with maternity pay, salary sacrifice and childcare vouchers Salary sacrifice is a contractual arrangement between an employer and employee, whereby the employee gives up the right to receive part of the cash pay due under the employment contract. The sacrifice is made in return for the employer’s agreement to provide the employee with some form of non-cash benefit. 

Benefits and allowances 2009: survey overview Employment Review provides an overview of the findings of its survey of benefits and allowances packages in 288 organisations. 

Different rewards for new recruits risks staff rift Closing final salary pension schemes to new starters and offering them different rewards to save costs risks causing a divide between new and existing staff who believe the changed deal is more appealing, employers have been warned.