We are considering reinvesting part of the Employer NI Savings in to employees’ pension funds to encourage our employees to save more towards their future retirement. Does anybody have any experience of this. Did it encourage employees to save more in to their pension, what % of the 13.8% did you provide to the employee?
We reinvested the whole savings back to the employee's pension.
We ceased this a couple of years ago. Previously we added 50% of the NIC saving. We did this on monthly contributions and not bonus sacrifice.
We acquired a small company recently which added 10% of the 13.8% into pensions. we have now harmonized approaches (and do not pass on any savings to employees).
There was no change in take up as a result of changes as our contribution is attractive without it (and employee contribution required is fairly low).
We pass back 50% to the employee. It works really well. The employees appreciate this.
We do not give saving back directly, but monitor saving closely to ensure it is spent on employee benefits/systems. It paid for our flex ben system as an example, but there are savings remaining