Client feedback

“Many organisations and people provide the services that clients need. In my opinion, the differentiator is in the way those services are provided and to that extent, Kathy embodies the qualities that I have come to value from PSITL. Kathy is organised but not fussy; diligent but not dogmatic; persistent without being pushy and compliant in a pragmatic way. Whilst she takes ownership and drives issues forward, Kathy is a team player who uses her and her colleagues experience to provide services to her trustee client whilst working closely with those like me representing the sponsoring employer. She works collaboratively with advisers but constructively challenges the scope of services, fees and service standards whenever necessary and makes sure that member needs are always taken into account. I enjoy working with her and trust that she will deliver what is required by the trustee and the members they represent in a manner satisfactory to the sponsoring employer. ”

Stuart Barker,

Internal Pensions Consultant, RSPCA

“Excellent, very strong relationship. Good understanding of our needs. We can absolutely rely on PSGS. ”

David Onion ,

Volvo Group

“Very responsive to any queries we have and proactive in managing our scheme to the best. Very happy with the support we are getting.”

Caroline Rand ,

Historic Royal Palaces

“A major problem with the pension fund needed skilled, constructive help - which was given!”

“Ann is very proactive and ensures we address all issues well ahead of time and extremely efficiently.”

Ian Edwards,

Comet

“Keen to assist and helpful.”

Changing salary sacrifice – is there a cunning plan?

Topic:

Hot topic

Date published:

Tuesday, 3 May 2016

Author:

Kevin Clark

Concerned about the growth of salary sacrifice schemes (30% since 2010), the Chancellor has sent warning shots across the bows of salary sacrifice schemes in recent Budgets and Autumn Statements. We all wondered if there would be something bold in this year’s Budget…

The short answer is, there wasn’t! We still do not know exactly which benefits would be subject to a clampdown. However, it appears the government wants to encourage employers to offer certain benefits as the 2016 Budget report did state the review is not intended to affect salary sacrifice on pensions, childcare or cycle to work schemes.

Banning salary sacrifice for some benefits would certainly seem a simple way for the government to increase revenue through National Insurance contributions (NICs) and, in some cases, income tax. As it would impact both businesses and individuals, perhaps they have held off doing anything bold to the system right now – and avoided confirming the timing of any changes - because of the difficult economic conditions.

Benefits in kind, such as private medical insurance or dental cover obtained via salary sacrifice currently only attract NIC advantages (with the employee still subject to income tax on the value of the benefit). Other benefits, such as additional employee life assurance and income protection, better fit the description of attracting income tax and NIC advantages. Any could be a target, but we await further information from the Treasury.

The new lifetime ISA , LISA, throws in a bit of a curve ball as the product does not fit in with salary sacrifice. If LISAs do take off and some of the age and/or contribution restrictions are relaxed over time, standard pension contributions are likely to decline and with it the significance of pension salary sacrifice. I wonder if that is part of the Chancellor’s big plan?

Want to know more about the new lifetime ISA? Read our LISA blog

Back to opinions

Hot topics

‘ PSGS & 20-20 Trustees merge to form Vidett ’

Punter Southall Governance Services (PSGS) & 20-20 Trustees (20-20) have today announced they...

‘ Don’t be surprised that your gilt funds are being treated like an emerging market ’

Image of Hot Topic author Sophia Harrison, Client Director

You may have seen or heard about the article in the Financial Times about how Insight...

More opinions »