PUB and restaurant company Mitchells & Butler is to allow retail managers to sacrifice their annual bonus into the company’s defined contribution or defined benefit pension schemes for the first time.
The company previously only allowed its 500 head office staff to sacrifice 100% of the gross value of their annual bonus, which is paid out in December, into a company pension scheme. But, this year, the 2,000 managers from its restaurant chains such as Toby Carvery will also be able to contribute their annual bonuses in to a pension scheme through a salary sacrifice arrangement.
Where they sign up to this, the company will also contribute half of the national insurance savings it has made to the pension.
Sheila Mellish, director of compensation and benefits, said: “The scheme was very well received last year and the initial level of enquiries for this year’s scheme has been encouraging.”
Managers were informed about the changes in a weekly company update and each eligible employee was sent information on how to salary sacrifice their bonus.