Wolters Kluwer made its pension benefit more competitive by consolidating five separate schemes, resulting from a spate of acquisitions, into one group personal pension plan (GPP).
The money the company saved on administration costs enabled it to increase its pensions contributions by an average of 2 percent for each employee who contributes to the GPP. All new recruits can join the GPP and receive double matching employer contributions on employee contributions of up to 4 percent, giving them a maximum total contribution of 12 percent.
The GPP, which is provided and administered by Fidelity, replaced two trust-based defined contribution schemes and three GPPs. Following the harmonisation into a single scheme, employee take-up of the benefit increased from 65 percent to 85 percent.
Anneke Heaton, reward manager at Wolters Kluwer, explains: “By moving to a single scheme, the charges were lower for everybody and, as a result, they all got a better deal.
“There is now better engagement from employees about pension benefits. There is a greater level of understanding of the benefits.”