Death in Service/Sal sacrifice

Leigh-Anne_60

I currently and have done for a while, salary sac quite a substantial amount of my salary. However it just occurred to me that it may affect my DIS.  Having googled it, there doesn’t seem to be any statutory approach, so will ask my employers ( private sector) for certainty…. However what are people’s experiences, is salary sacrifice usually disregarded in DIS settlement calcs?

westv

At my place DIS is based on full contracted salary before any sal sac,

mr_stripey

same with my employer (based on full salary)

But on the grounds that I will be dead for it to kick in, it's not likely to bother me much

Grumpy_chap

Leigh-Anne_60 said:

I currently and have done for a while, salary sac quite a substantial amount of my salary. However it just occurred to me that it may affect my DIS.  Having googled it, there doesn’t seem to be any statutory approach, so will ask my employers ( private sector) for certainty…. However what are people’s experiences, is salary sacrifice usually disregarded in DIS settlement calcs?

This wholly depends on the scheme rules at your employer.  No-one else's experience is particularly relevant.

Marcon

Grumpy_chap said:

Leigh-Anne_60 said:

I currently and have done for a while, salary sac quite a substantial amount of my salary. However it just occurred to me that it may affect my DIS.  Having googled it, there doesn’t seem to be any statutory approach, so will ask my employers ( private sector) for certainty…. However what are people’s experiences, is salary sacrifice usually disregarded in DIS settlement calcs?

This wholly depends on the scheme rules at your employer.  No-one else's experience is particularly relevant.

Exactly. There is no point asking about what 'usually' happens when it's entirely down to your own terms of employment. The danger of asking the question here is that you get several answers saying happily that SS is disregarded by their employer, and wrongly assuming it's safe to assume... it isn't!

You need to get clear confirmation in writing, which could already be available in your terms of employment, staff handbook or company intranet. Most DIS schemes are insured, and employers aren't always great at ensuring the insurer knows exactly what needs to be insured...

vacheron

Worth checking with your employer, but when we first set up our SalSac our employer issued a statement confirming that any approaches from credit card / mortgage applications and death in service calculations etc. would result in our company providing our pre-sacrifice amount.

I currently salsac 60% of my salary into my pension, and also pay £500 of what remains (after tax) into our company SAYE scheme, so if I used my actual take home amount I'd barely qualify for anything!   

MallyGirl

vacheron said:

Worth checking with your employer, but when we first set up our SalSac our employer issued a statement confirming that any approaches from credit card / mortgage applications and death in service calculations etc. would result in our company providing our pre-sacrifice amount.

I currently salsac 60% of my salary into my pension, and also pay £500 of what remains (after tax) into our company SAYE scheme, so if I used my actual take home amount I'd barely qualify for anything!   

Same here! 

Leigh-Anne_60

Marcon said:

You need to get clear confirmation in writing, which could already be available in your terms of employment, staff handbook or company intranet. Most DIS schemes are insured, and employers aren't always great at ensuring the insurer knows exactly what needs to be insured...

Hmmm, I work in the Insurance industry! As I said in my initial post, I will ask my employer….. didn’t realise by asking other people’s experience I would cause such offence!

Leigh-Anne_60

mr_stripey said:

But on the grounds that I will be dead for it to kick in, it's not likely to bother me much

That is very true 🤣

Marcon

Leigh-Anne_60 said:

Marcon said:

You need to get clear confirmation in writing, which could already be available in your terms of employment, staff handbook or company intranet. Most DIS schemes are insured, and employers aren't always great at ensuring the insurer knows exactly what needs to be insured...

Hmmm, I work in the Insurance industry! As I said in my initial post, I will ask my employer….. didn’t realise by asking other people’s experience I would cause such offence!

I don't think you've caused any offence - just got some realistic responses (including mine based on too much experience of having to sort out employers insuring the wrong benefits!).