HR REWARD AND BENEFITS


Where will the money to pay for auto-enrolled pensions come from? Some 80% of firms will fund it from profits, says EDMUND TIRBUTT, while others are hacking away at the ‘nice to have’ perks


won’t hack it P


pensions 22 HR Supplement September 2012


Basic


ensions auto-enrolment will inevitably have implications for employee benefits and reward systems, and there has already been considerable activity in this respect from employers facing the more immediate staging dates. Nevertheless, factors such as company culture, industry sector and existing levels of benefit provision ensure that different organisations are being affected in different ways. At one extreme, employers are actually getting rid of


existing group risk or health insurance schemes, or at least significantly reducing their benefit levels, to help meet auto-enrolment costs. Matthew Gregson, managing consultant at Thomsons Online Benefits, says:


“Some are stripping out costs elsewhere to save 1.5% to 2.5% of payroll. They may, for example, remove dependants’ pensions, reduce multiples of life cover, cap payment terms on income protection, or replace private medical insurance (PMI)


hrmagazine.co.uk


Fernando Volken Togni


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