Newcastle Building Society has received living pension employer accreditation from the Living Wage Foundation.
The society’s commitment will see its new employees, who join the organisation after 1 April 2024, receive a higher default level of pension than current auto-enrolment contributions, with workers paying 5% and employers paying 7%. Through auto-enrolment, employers must contribute at least 3% and employees pay 5%. Existing employees will be advised on how to increase their contribution in line with the standard if they wish to do so.
The living pension is a voluntary savings target for employers that want to help employees, particularly low-paid individuals, build a pension pot that will meet basic everyday needs in retirement. This currently stands at 12% of a full-time living wage worker’s salary and can also be met as a cash amount of £2,800 a year, with employers contributing at least £1,630 to this.
The accreditation is part of Newcastle Building Society’s commitment to drive up pension savings so its employees can afford to live in retirement.
Last year, the society retained its Investors in People Platinum status. It also remains committed to being a real living wage employer and joined a city-wide action group to make Newcastle a living wage city and to encourage more employers in the region to pay the rate.
Karen Brewerton, chief people officer at Newcastle Building Society, said: “We’re proud to be the first building society in the UK and the first organisation in the North East to become an accredited living pension employer. Our purpose is to connect our communities with a better financial future, and this extends to our colleagues with the offer of a pension that provides security and stability in retirement. Our living pension employer status is a reflection of the commitment to our wider reward package, that plays an important role in us delivering a great place to work where people are empowered to realise their potential.”
