Generation Financial Services provides consultation, advice, implementation and management of salary sacrifice pension schemes (often know as salary exchange or smart pension schemes).
Salary sacrifice pension schemes
Salary sacrifice pension schemes are contractual arrangements whereby an employee gives up the right to receive part of their cash remuneration, usually in return for their employer’s agreement to provide some form of non-cash benefit. For example, your company can offer its employees a salary sacrifice scheme as a means for them to receive increased pension scheme contributions or childcare vouchers.
Salary sacrifice pension arrangements work by allowing individuals to sacrifice part of their salary, which is paid directly into their pension plan by the employer rather than the individual. As a result of a lower salary, both the employer and employee pay less National Insurance contribution (NIC). The employer can pay all or part of the NIC saving into the member’s pension, along with the sacrificed amount.
Generation Financial Services’ pension experts will help you use salary sacrifice to enhance pension benefits for employees and reduced pension scheme costs.
To find out how Generation Financial Services would work with your business to develop your company salary sacrifice pension scheme, click here.