There will be no surprise tax bills at City law firm Bird and Bird, where staff will be supported through the new pension contribution limits.
Tanya Bohm, senior rewards and benefits officer, says: “It is important all employees are fully informed and aware of the limits surrounding pension contributions and the tax implications. We are meeting our pensions intermediary to talk through the communications.”
An important subject of the communication will be the ability to bring forward the allowance of £50,000 from three previous years, if it has not already been used. “This will need to be clearly discussed with employees who may wish to take advantage,” says Bohm.
Employees will also be able to consult pensions advisers. Total reward statements will include taxable earnings and allowances to help them make informed decisions.
Bird and Bird, which has 400 staff, is also reviewing its benefits offering. “With the new pensions legislation, including auto-enrolment from 2012, and the abolition of the default retirement age, we need to review our benefits and ascertain where we can add value,” says Bohm.
“One area we are reviewing is financial planning. We are looking at other savings options to run in conjunction with the pension. Many staff do not value pensions as highly as perhaps they should.”
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