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Certified Compensation Professional (CCP®) The CCP® certification, also from WorldatWork, specializes in compensation but covers a critical aspect of employee benefits — pay structures, salary planning, and compensation strategy. It’s ideal for professionals who want to specialize in retirement benefits and pensions.
What is a group personal pension (GPP)? A group personal pension is a defined contribution (DC) arrangement whereby an employer agrees to make monthly contributions into a scheme, but the contract is between the employer and the pension provider. The rest will be taxed. The income is taxable. What are the origins of GPPs?
New research has revealed that 82% of young employees aged between 18 and 22 believe that individuals in employment should start saving for their pensions and retirement before the current default age of 22. The post 82% of young staff want to save for pensions before turning 22 appeared first on Employee Benefits.
Two-thirds (66%) of full-time UK employees regard contributory pensions and savings as important, according to research by Employee Benefits Isle of Man. Workers worldwide are placing greater importance on flexible non-salary benefits, signalling a shift towards more personalised and immediate value-adding benefits. This
lost pension pots in the UK, worth around £26.6 billion WEALTH at work explains how employees can track down lost pensions and provides guidance on whether to consolidate The total value of lost pension pots has grown from £19.4 million lost pension pots sitting unclaimed because they’ve been simply lost or forgotten about.
Off-Farm Job Employer Benefits - These include a defined benefit pension, an employer retirement savings plan (e.g., Simplified Employee Pension (SEP)- This is a retirement savings plan for self-employed workers and small business owners. 401(k), 403(b), 457 plan, and thrift savings plan), and other employer benefits (e.g.,
Higher pay rises for men than women could result in a gender pensions gap of £142,603, according to new findings. Research commissioned by investment solutions firm Fidelity International revealed that men typically receive £733 more than women when their salary is increased.
We ask Jonathan Watts-Lay, Director, WEALTH at work, what he thinks are the main benefits of salary sacrifice schemes. Jonathan Watts-Lay, Director, WEALTH at work, comments, “One way to save money is by paying for things through your company payroll using your pre-tax salary, so you pay less income tax and National Insurance.
When law firm Herbert Smith Freehills was approached about taking part in the living pension pilot, it was keen to support what it saw as a vital initiative not just for its own employees, but for society in general. It decided to become an accredited living pension employer to provide greater financial security for its 5,000 employees.
WEALTH at work, a leading financial wellbeing and retirement specialist has run financial education workshops for staff in hundreds of organisations and is encouraging people to consider using this saving in National Insurance if they can, to increase their monthly pension contributions. When made into a pension contribution it is worth £206.39
Transitioning to a superior provider is no longer a hassle: If you’re contemplating changing your current workplace pension scheme, the process isn’t as challenging as you might think. Many pension companies (we’re one of them!) What is a workplace pension? are prepared to assist you with the heavy lifting.
billion pension to cut future benefits for plan members but can make other changes without employees’ consent. The case explored the treatment of future service benefits under the BBC pension scheme, which provides retirement benefits on a defined benefit (DB) basis for BBC employees who joined before 1 December 2010.
Someone is said to have golden handcuffs whenever their job’s perks, such as high salaries or compensation plans, are too attractive to leave. His new job featured many benefits and a six-figure salary, but he knew a high-pressure work environment would be the trade-off. What are golden handcuffs?
As a voluntary savings target, the living pension initiative sets out the minimum annual contribution needed to afford basic living costs in retirement. Organisations should engage employees in their future finances by introducing schemes to improve financial literacy and provide better pensions information.
Salary expectations is a question that will crop up if it has not been specified in the job description. This question is more about finding a salary match, adds Crawford. “Ideally, employers and recruiters would be upfront with [salary] information and volunteer it first, but that’s not often the case,” Fink said.
It is quite natural for us to focus on salary. For example, deductions for childcare vouchers or for a salary sacrifice car arrangement are made from pre-tax salary, which means that the money is not subject to income tax and national insurance. After all, we all need to make a living. appeared first on Employee Benefits.
Pensionsalary sacrifice schemes are not a new concept, but one that all employers should consider, especially at a time where the tax burden on both employers and employees is high. Salary sacrifice arrangements help employers make their salary budget stretch a bit further. reduction in its national insurance (NIC) bill.
Huddersfield-based children’s Hospice charity Forget Me Not has launched a salary sacrifice pension arrangement in order to look after the financial wellbeing of its 140 employees. This is then paid into their pension account before national insurance and tax is taken from their salary.
For 41 percent of small business employees, benefits are crucial when accepting a new job, second to salary. A matching 401(k) or pension. “I don’t really care about my employee benefits,” said no employee ever. When it comes to employee benefits, if your business can offer it, employees want it. Free healthcare coverage.
However, the tax deduction is limited to a maximum of 25% of the total salary of the employees in this qualified employee benefit plan. SEP – Simplified Employee Pension. There are several ways individuals contribute to their retirement benefits. Some of these plans have an advantage when it comes to taxes. Hybrid plan. 403(b) plans.
Workplace Retirement Plans - The four types of tax-deferred, salary-reduction, defined contribution plans available through employers are 401(k) (for-profit corporation employees), 403(b (school and non-profit employees), 457 (state/local government employees), and Thrift Savings Plan (federal government employees and service members).
Newcastle Building Society has received living pension employer accreditation from the Living Wage Foundation. The society’s commitment will see its new employees, who join the organisation after 1 April 2024, receive a higher default level of pension than current auto-enrolment contributions, with workers paying 5% and employers paying 7%.
A quarter (26%) of large employers have seen an increase in the number of pension scheme opt-outs among employees in the face of the cost-of-living crisis , according to research by Cushon. The majority (84%) of those with a workplace pension agreed that increased financial education around pensions would be helpful.
Many people think you need to earn a high salary (e.g., One reason is that average salaries rise with higher levels of education. 100,000+) to become a millionaire. In reality, many people of ordinary means (i.e., In addition, people tend to marry spouses with similar characteristics. blogs, podcasts, newspapers, etc.).
Cornish charitable housing association Coastline Housing has received living pension accreditation from the Living Wage Foundation. Launched last month , the living pension is a voluntary savings target for employers who want to help workers build up a pension that will provide enough income for everyday needs in retirement.
There are a number of reasons for this: their salary is often higher than earlier in their career, mortgage payments are probably less onerous and children may be grown up and no longer financially dependent. Then, when they’re ready, they want to understand how to turn their pension savings into an income for life.
In what may bring a sigh of relief, 2022 is not a year with new legal requirements incumbent on employers regarding pensions. But there are many ongoing requirements to be mindful of, and changes within the pensions environment that could lead to future impacts. There will be a need to be maintaining ongoing AE duties.
Health provider Novus Health has received living pension employer accreditation from the Living Wage Foundation. Employers commit to either a percentage or cash target, equivalent to 12% of salary for a full-time employee earning a living wage salary or £2,800. The employer pays in at least 7%, or £1,630.
Many of the organisation’s employees are in final salary and local government schemes, but the majority, about 4,000, or 40% of the workforce, are in the organisation’s defined contribution (DC) scheme. The pension is accessed via an app , as are payslips and approval for overtime. That’s real value for money.”
Retirement Plans (401(k) & Pensions) A robust 401(k) match or pension plan is a powerful signal that a company views its employees as long-term partners, not disposable resources. Remember when companies thought they could get away by offering a basic health plan and call it a day when it came to employee benefits. But not anymore!
However, many don’t realise the significant difference a small increase to their pension savings can make. For example, someone in their 20s, saving an extra 1% a year with their employer matching this, may be able to increase their pension pot in retirement by 25%. They are all 25 years old and plan to retire at age 68.
Credit: ClimbWhenReady / Shutterstock In the UK, home improvement firm Kingfisher’s pension provision comprises a closed final salary section, with 28,000 deferred and pensioner members, and an open money purchase section, with 70,000 active and deferred members.
How would you feel if you discovered your company was unintentionally wasting a significant portion of your salary? But your workplace pension setup could be causing this wastage right under your nose, without you even being aware. You might expect pension providers to help you traverse this complex maze.
Scottish energy multinational SSE was one of the first employers to become accredited by the living pension scheme in 2023. The Living Pension savings target is 12% of a full-time living Wage worker’s salary, of which the employer pays at least 7%. One reason behind high contribution levels is SSE’s communications strategy.
Pensions law firm Sacker and Partners has become a living pension employer. Employers commit to either a percentage or cash target, equivalent to 12% of salary for a full-time employee earning a living wage salary or £2,800. The employer pays in at least 7%, or £1,630.
Need to know: Increasing education about pensions is key to helping employees make the right decisions about accessing their pension savings early. The ability to access pension funds early could prompt changes to the way that pension providers invest for their members.
It is generally acknowledged that, despite the success of pensions auto-enrolment , saving the minimum contribution levels will not lead to a comfortable standard of living in retirement. Pensions can also seem too abstract to think about. The complexity of pensions and lack of financial education is another factor, Blake adds.
Two in five (40%) UK employees admitted they would choose a job with a lower salary but generous employee benefits , according to research from MetLife UK. Competitive salaries are important, but businesses need to realise that it’s not the only thing candidates think about when assessing job opportunities.
Credit: Alasdair Jones / Shutterstock.com Scottish energy firm SSE has been accredited as a living pension employer to provide financial stability and security. The living pension savings target is 12% of a full-time employee earning a living wage salary , of which the employer pays in at least 7%.
The Court of Appeal has upheld the High Court’s ruling that a written actuarial confirmation was required where an alteration to the Virgin Media scheme’s rules affected pension benefits for past or future service benefits. What evidence might be sufficient to demonstrate that a compliant actuarial confirmation was, in fact, provided?
A former director of 1066 Target Sports in St Leonards, East Sussex, has received a £15,000 fine for withholding legally-required pensions information. This caused a degree of distress to the people affected, as the money they thought was going into their pensions didn’t. It caused them real concern.”
Employees would receive a flex pay arrangement , worth an additional 9% of salary. This would incorporate an employer pension contribution of 4%, and an extra 5% which could be used to purchase other benefits. The starting point was the pension plan. It has also been helpful when recruiting. “We
As head of payroll bureau services at CIPHR’s sister company PBS , a payroll software and service provider, Jon and his team process payroll and BACS salary payments for 94,000 employees, across 500 organisations every month. Here are his top five reasons why it’s essential to check payslips regularly: 1. Variable payments.
Conducted by global talent services firm Morgan McKinley as part of its 2024 Salary guide , the survey found that the top five desired benefits respondents look for in a job are working from home, bonus, pension, health insurance and flexible working hours.
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