Aon invests NI savings back into its pension

Aon is to re-invest the National Insurance (NI) savings gained through its salary sacrificed pension arrangement back into the scheme in the form of increased contributions for staff.

Employees currently receive employer contributions of between 6 per cent and 12 per cent depending on their age into the defined contribution pension, which is offered through the organisation’s flexible benefits scheme. Staff contribute between 2 per cent and 5 per cent depending on age.

From 1 January, however, staff who elect to make additional contributions above the minimum level for their age band through salary sacrifice will receive increased employer contributions up to 110 per cent on the extra amount sacrificed. This will be funded by the company’s NI savings and will result in greater NI savings for staff.

Michael Rose, director of reward and HR policy, said: "It is not costing us anything. We are always looking to do something new for the flex scheme each year and because we implemented the salary sacrifice benefit last year this seemed to fit in well."

The election period for next year’s flexible benefits scheme will open for staff to make their choices next month.