Case study: Capital One in credit on auto-enrolment

Capital One is well ahead of the game in preparing for the 2012 pension reforms – it has already introduced auto-enrolment and auto-increases.

Working from the premise that the credit card firm’s staff should be encouraged to save more for their retirement, its pensions governance committee decided to introduce an arrangement whereby employee pension contributions automatically increase by 1% each year unless staff choose to opt out.

At its group personal pension’s (GPP’s) most basic level, staff are given a 5% employer contribution, but if the employee contributes 3% of salary, Capital One will match this amount, bringing the total contribution to 11% of salary.

Matches will always be based on a 5% contribution, and if the employee puts in 7%, they will obtain the maximum contribution of 10% from Capital One, bringing the total to 17%.

The firm also allows staff to make extra contributions into their scheme halfway through the year.

Jill Cunnison, operations manager HR, is confident that the company will not need to make significant changes when auto-enrolment comes in 2012.

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