KPMG has introduced the option for staff to sacrifice their annual bonus into their company pension scheme, ahead of the pre-Christmas bonus period.
Under the scheme, employees have the option of sacrificing part or all of their annual bonus into their pension pot, making tax and national insurance (NI) savings in the process.
In addition, the accountancy firm pays an additional 10% of the amount sacrificed into each employee’s pension. This is a sum generated from the 12.8% NI saving that the employer makes through the tax-efficient bonus sacrifice scheme.
The remaining 2.8% of employer savings are put towards funding the administration and processing costs associated with the new scheme.
Sara Turner, reward manager, said: “This is a really good way of helping employees increase their pension, and we want to be able to provide the best opportunity possible to do this for staff.”
The sacrifice scheme is available to all pension scheme members who are in line for an annual bonus.
Take-up for the new initiative has been positive and the plan is to offer the option again next year.