A valuable financial wellbeing benefit which will help to retain and attract as well as provide security for your employees
Workplace Pension Schemes (Group Personal Pensions)
A GPP is run by a pension provider of an employer’s choosing. The pension is an individual contract between an employee and the provider.
The employer will set the contribution amounts (for further details refer to the contributions tab).
In the IOM you are eligible to claim tax relief on contributions made to a GPP or your pension scheme may have Salary Sacrifice approval. See contributions tab for further details.
Your pension is designed to build up a ‘pot’ based on employee contributions, employer contributions and investment returns from the underlying investment fund. There is no guarantee of how much your ‘pot’ may be at retirement and be aware that the value of investments might go up or down.
Employers can choose whether to pay into a pension scheme as there is currently no Auto-Enrolment legislation on the IOM. Please refer to the following examples of how some employers choose to arrange their pension schemes.
Does not pay into the pension but arranges the facility to allow employees to pay however much they wish from salary.
Matches a percentage of salary depending, this can vary depending on position or service within the company. For Example, after probation until senior management, they will match 4% salary, one Senior management attained or more years, they’ll match 5%. This means that for every 5% of salary the employee pays, the employer also pays the equivalent. Employees must contribute themselves, to receive employer contributions.
Pays a percentage of employee salary into the pension scheme. No requirement for the employee to contribute, but they have the option to.
Contributions to a pension scheme are limited to the annual allowance. The limits for 2022/23 tax year are £50,000 pa.
- MAC will meet with you as the employer to discuss requirements and the size of the scheme.
- MAC will review the current market and obtain quotes suitabe for your needs.
- You will be provided with a proposal which outlines the costs, services provided and implementation process in full.
- MAC will implement the scheme on your behalf, as well as assist you with any Tax approval for salary sacrifice arrangements if required.
The first step is to contact MAC to arrange a meeting where we can discuss your requirements.