Optimising your Pension Benefit Strategy
Pension benefits can be an expensive and complex part of an employee's remuneration. However there is a wide range of actions on benefit strategy that can be pursued to mitigate rising pension costs. In the wake of the recent financial turmoil, the pace of change in this area has accelerated almost exponentially.
Change is predominantly being directed at reducing the cost and risks of defined benefit pensions being provided to current employees. The series of announcements over the last 12 months have included companies on their second or third round of change as well as many organisations where the barriers to change might have previously been felt to be insurmountable.
Defined contribution arrangements are also being reviewed - either as part of a cost cutting drive or, to ensure they remain fit for purpose as they become the primary pension arrangement going forwards.
- Introduction of Personal Accounts 2012
Making sure the extra costs that could be incurred are understood and the options analysed. - Budget changes for high earners
The reduction in tax-effectiveness of pension saving will make traditional arrangements unattractive for high earners / senior employees - who does it affect and how should the employer respond. - Efficiency of provision
Ensuring that possible National Insurance savings are captured through the use of salary sacrifice arrangements.
Whatever your arrangements or your reasons, KPMG can help you:
- design the optimal benefits strategy aligned to business objectives;
- engage with key stakeholders such as unions, trustees and employees; and
- manage and implement change in timeframes that suit the business.
Why KPMG?
We have a team of pension specialists able to help in all areas associated with benefit design and implementation. We have a variety of forward thinking approaches to help tackle the financial and employee relations challenges associated with pension provision.
Our clients value our wide market knowledge and our contemporary and proactive approach. They also appreciate our ability to combine pensions advice with detailed tax and accounting experience.
KPMG works with all sizes of companies. We carry out pension benefit reviews for a wide range of employers, ranging from smaller companies with less than 100 employees right up to large FTSE 100 clients, where we have advised on a number of high profile benefit reviews.
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