The Financial Services Authority (FSA) is to increase the amount employees can pay into its pension scheme through salary sacrifice.
From June, its 2,900 employees, who can already contribute up to 20% of their salary into the money purchase scheme through salary sacrifice, will be able to contribute up to 40%.
Jonathan Chapman, head of organisational development and reward, said: "A much higher level is allowed under the new [pensions] legislation." He added that salary sacrifice of up to 20% had been a popular option, but wasn't sure how many staff would choose to increase contributions.