Salary exchange

Salary exchange can deliver substantial savings to both employer and employee by removing National Insurance liabilities on members’ payments to your pension scheme. How you use your savings is up to you, but they can then be used in a variety of ways, such as:

  • funding the implementation of salary exchange or other improvements to your employee benefits package
  • offering increased employer contributions
  • reducing the overall cost of your pension and employee benefits


How we can help you

We can help you take advantage of salary exchange by establishing an arrangement that is legally compliant, simple to operate, saves you money and offers a valuable benefit to your employees.

Our service is tailored to the level of support you require, and includes:

  • feasibility and financial modelling
  • scheme rules and considerations
  • employee communication and implementation

We know that any decision affecting company finances must be carefully considered so we have developed interactive tools that can help you design, with confidence, a salary exchange scheme that is aligned with your overall financial and reward objectives.


 Insights and views

    Government sets 0.75% charge cap for auto-enrolment schemes and will ban commission
    31 March 2014
    The government has introduced a 0.75% charge cap on the default funds of qualifying schemes used for auto-enrolment from April 2015 and has confirmed that from April 2016 commissions and active member discounts will be banned.

    Read more
    2014/15 PPF levy consultation
    20 September 2013
    On 5 September 2013, the Pension Protection Fund (PPF) released a consultation document covering proposals for the 2014/15 levy. This is the last year of the first triennium in the PPF’s New Levy Framework under which the PPF intended that the rules used to calculate levies would be unchanged except in limited circumstances.

    Read more
    Update on tax protections
    10 September 2013
    Following the 2012 autumn statement announcement by the Chancellor of the Exchequer that the annual and lifetime allowances would be reduced again, in June 2013 HM Treasury and HM Revenue and Customs (HMRC) published a joint consultation on a new type of protection from the lifetime allowance, to be known as ‘individual protection 2014’. Also, in July, regulations were made, which are aimed at fixing some problems with the existing fixed protection regime.

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    State pension reform and occupational pension schemes
    22 July 2013
    In January, the Pensions Minister, Steve Webb, announced a radical reform of the UK state pension system. The Government announced in the March Budget that the proposed changes would take place in April 2016 rather than April 2017 as previously envisaged. The proposals are now contained in the Pensions Bill, which is expected to receive Royal Assent in spring 2014.

    Read more
    Pensions Bill Published May 2013
    15 May 2013
    On Friday 10 May 2013, the Pensions Bill was formally introduced to Parliament by the Government. It had previously been published in draft form in January and was subject to pre-legislative scrutiny by the Commons Work and Pensions Select Committee, whose report was published at the start of April. This briefing note focusses on new material added to the Bill since the first draft. Our January 2013 briefing note ‘Draft Pensions Bill published’ covers measures first published in the draft Bill.

    Read more
    Visit the Industry Insights page for news and views on the latest industry developments


    Improving Member Outcomes: Why It Should Matter to Employers
    30 April 2014
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    Improving Member Outcomes: Why It Should Matter to Employers
    8 May 2014
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    Budget 2014: Appealing pension options or too much flexibility?
    14 May 2014
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    A Streamlined Approach to Investment Decision Making
    3 June 2014
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    Visit the Events area for all forthcoming Punter Southall seminars, conferences and events
    Speak to us

    Speak direct to our specialists in this area
    Nick Frankland
    Or call us on
    020 3327 5000

 DC Survey 2012