Deloitte has decided to extend employer pension contributions to all employees regardless of age, in the light of imminent age discrimination legislation and the need to keep its benefits package competitive. The move follows an exercise in competitive benchmarking carried out for the accountancy firm, which has also resulted in the introduction of a range of new benefits.
Previously the firm did not pay pension contributions for staff under 30 years of age. Now every member of the stakeholder pension and the defined benefit scheme will be entitled to a matched contribution of up to 4%.
But employees aged over 40 who are members of either scheme will be entitled to a 6% matched contribution. Neil McKie, reward manager at Deloitte, admitted that the move does not put employees of all ages on equal terms, but says it strengthens the company’s position with regard to age discrimination.
He added that Deloitte will keep a watching brief on age discrimination legislation, which is due to come into effect in October. “We have moved employees under the age of 30 much closer in line to those over 40, and we are confident that this will keep us competitive,” McKie said. “We will take a look at the scheme closer to October and see if any tweaking will be needed then. “Obviously government pressure has made us take a look at the pension scheme we offer and who it is available to. We also want to be looked upon as a responsible employer. However, the change has been driven primarily by what our competitors are doing.”
Deloitte has also increased holiday entitlement to 25 days for all employees and made season ticket loans available to all, instead of restricting them to managers. Salary sacrifice schemes such as bikes for work and car parking have also been introduced to help boost the overall benefits package.