Kalamazoo Reynolds has added a salary sacrifice arrangement to its group personal pension (GPP) scheme.
Following the launch, which took place in September, membership has increased from 75% to 84%, with 64% of existing pension members increasing their personal contributions to the scheme.
The automotive dealership, which is part of the Reynolds and Reynolds corporation based in the US, wanted to improve communications and engage employees more effectively with their pension.
The GPP has been in place since 2003 when it was rolled out to replace a defined benefit (DB) scheme that had been closed to future accrual.
The employer contribution range for the GPP is between 3% and 5.5%. The organisation provides matched contributions to the scheme and adds 0.25%.
Johnson Fleming advised the firm on the salary sacrifice arrangement and also handled all communications with staff. All 280 employees were invited to individual meetings to discuss the changes and ask questions.
Johnson Fleming also negotiated an annual management charge of 0.5% for the scheme, which is provided by Scottish Widows, which more than 28% lower than without the salary sacrifice.
The scheme is being run on Johnson Fleming’s Inform Equip System, which provides Kalamazoo Reynolds with updates on the number of employees that attended presentations and individual meetings, as well as feedback from employees on their understanding of the scheme.
Arthur Boulter, European financial controller at Kalamazoo Reynolds, said: “I have been extremely pleased with the smooth implementation by Johnson Fleming of the major changes to our pension scheme and in particular with the high levels of reported satisfaction by employees who completed the process.”
Read more articles on pensions salary sacrifice