Benfield auto-enrols to GPP

Benfield Group is looking at introducing auto-enrolment for staff into its group personal pension plan (GPP) over the next six-to-nine months.

The independent reinsurance and risk intermediary is concerned that a small section of employees are not taking part in the scheme, and is keen to encourage all staff to save.

James Harwood, compensation and benefits manager, explained: "We have a very attractive benefit on offer and it frightens me that some people are not taking advantage of it."

The scheme is a non-contributory plan, to which the company offer employees percentages of their base salary dependent on age up to a maximum of GBP200,000. Rates start at 7.5 per cent for employees under the age of 24 and go up to 35 per cent for employees aged over 55 years.

Although the scheme rewards staff depending on age, Harwood does not believe that it falls foul of the new age discrimination regulations following discussions with law firm Linklaters. The regulations came into effect at the beginning of this month.

"The larger the number of contribution bands, the easier it will be to demonstrate that the aim of the bands is to equalise benefits. We have eight so should be fine," said Harwood.