Information services company Wolters Kluwer has increased employer pension contributions using savings made by consolidating five separate pension schemes into one group personal pension (GPP) plan.
Reducing pension administration costs has enabled the company to increase its pensions contributions by an average of 2% for each employee who contributes to the new GPP, which is provided and administered by Fidelity.
Wolters Kluwer decided to harmonise its pensions provision after a spate of acquisitions over the past seven years, which left it with two trust-based defined contribution pension schemes and three GPPs.
All new employees can join the GPP and receive double matching employer contributions for employee contributions of up to 4%, making a maximum total contribution of 12%.
As well as presentations and a podcast, employees were given access to an online tool, called My Plan, to help them decide how much to contribute.
The pension changes, which took place in April, resulted in an increase in employee take-up from 65% to 85%. Anneke Heaton, reward manager at Wolters Kluwer, said: “We have also gone from employees tending not to contribute to a significant number of employees contributing 4% now in order to get the maximum employer contribution.”