UBS to offer cash alternatives to pensions for elite

UBS, the international financial group, will introduce a cash alternative for its British high earners when pensions simplification legislation is introduced in April.

A UBS spokesman said the company would make use of increased flexibility allowed by the legislation contained in the Finance Act 2004.

It intends to offer cash alternatives for high-earning staff with pension pots near or above the £1.5m statutory lifetime allowance (SLA) cap, who face a tax charge of 55% on further contributions.

The company is also organising briefings for high-earning employees to establish the need for primary or enhanced protection.

A UBS spokesman said a number of UK staff are already above or near the £1.5m SLA cap.

The global financial giant, which operates in 50 countries has 16% of its staff based in Europe and employs 6,000 staff in the UK. It has also launched a home computing initiative to all staff for which take up has been between 3% and 4%.