Switching from Employer Contribution Pension scheme to Salary Sacrifice

Albermarle

vacheron said:

Cobbler_tone said:

Marcon said:

vacheron said:

The first question I would be asking though is how much of your employers 15% NI saving from using Salary Sacrifice are they willing to pass on to the employees, as this can vary all the way from 0% to 100% 

The question is worth asking, but OP shouldn't get their hopes up that the employer will pass on any of the employer saving - employees will benefit from their own NI saving regardless, so it's still worth doing

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I always play a game of when I raise a question in my large organisation (via the correct channels) I try to guess the answer in advance. It is a bit like approaching a politician! 

I asked for some of the employer savings and got the exact answer I predicted.
1. The employer contributions are already generous.
2. Not all employees can afford to contribute above the standard rate, so it would be unfair for a sub set of employees to gain a financial advantage.

You know they can't really justify (or even acknowledge) that it is saving them money (verses the fully costed head they will have budgeted for) but I guess you are subsidising the total contributions they make for the work force indirectly. I'm sure it just gets swallowed up and probably comes down to extra admin/system work they are not inclined to do, or implement the resources to do it. I'd imagine that is normally the real reason.

Re. your employers justification #2: This seems a very weak argument as being able to afford additional contributions is already fundamentally “unfair” because the employee is likely to benefit far greater in the long run from both an investment return and a marginal tax rate in  retirement perspective.

it’s also amazing how many people have left our company and tried to have salary sacrifice implemented in their subsequent companies only for the financial department to either be utterly oblivious of it, or under the impression that this is some sort of shady tax dodge, or even illegal, even when my ex colleagues have shown them the pages on the.gov website that explains how to implement it! 🤦‍♂️🤦‍♂️🤦‍♂️

Probably because it does sound like one, although probably 'legal loophole' is a better description.
All those billions of lost NI, must be in the Chancellors target zone though.