Thought / 20 Sep 2018

Pension Awareness: Workplace Pensions

Automatic enrolment came into force in October 2012 and every employer in the UK now has to enrol all its eligible employees into a workplace pension scheme.

Your workplace pension could be a cornerstone of your employee benefits package, so make sure you shout about it!  There are a number of areas that your staff may find useful:

  1. Do your staff know how much you are investing for them?
  2. Are you using salary exchange (also known as salary sacrifice or SMART)? If so, are you maximising the savings available and do your employees understand it?
  3. What about the tax relief – are your staff familiar with how this works?
  4. What about the default investment fund – how’s it doing and has it been reviewed recently?
  5. Finally, do you have any higher earners that need special consideration?

Engaging with your staff to help them understand the benefits you provide is a great way to demonstrate to them how much you value them.

Don’t forget that minimum contributions are increasing next April, so if you need to make changes to your contribution structure, combining this with bigger messages can help soften the blow and give them the reassurance that this could be a good thing for them!

Sue Pemberton

Head of Employer Services