Scottish Life launches "salary sacrifice" support pack

Scottish Life, the pensions specialist arm of the Royal London Group, has relaunched a range of support material for employers and advisers to help them set up and run successful salary sacrifice schemes.

Scottish Life believes that salary sacrifice schemes provide an attractive and cost-effective pensions solution. Salary sacrifice can be set up so that more money is invested in pension schemes but with both employer and employee ending up in a financially neutral position.

As well as a new online calculator, supporting material includes a technical guide for financial advisers, a guide for employers, a guide and ‘ready reckoner' for employees and a series of presentations for both advisers and employers.

Salary sacrifice schemes can be run in conjunction with either a new or existing pension scheme as a way of increasing contributions.

Jamie Clark, Occupational Pensions Marketing Manager at Scottish Life said: "After a period of uncertainty following the removal of the Home Computing Initiative Scheme in 2006, salary sacrifice is enjoying something of a renaissance, with many large employers in the UK now offering this as part of the benefits package.

"In the run up to the proposed launch of Personal Accounts, employers who want to keep their existing pension scheme running will want to drive home the value of the scheme to employees. Setting up a salary sacrifice arrangement is a cost-effective way of doing this. It provides an excellent opportunity for employers to demonstrate the value they place on the pension scheme and their employees.

"Whilst a reduction in salary may seem an unattractive option, an arrangement can be structured so that employees' take home pay stays the same while pension contributions are higher.

"Our new material aims to give both advisers and employers everything they need to set up and run a successful salary sacrifice arrangement."