Savings Calculator 
 

This calculator allows you to estimate the annual saving to the business from structuring existing pension members' employee pension contributions under salary sacrifice. The savings will depend on how many members participate, the total amount of employee pension contributions and the type of pension scheme operated.

For more information on the impact to salary sacrifice on members and implementation requirements please contact Paul Waters.

To find out how much your organisation could save, complete the calculator below:
Pension scheme type: Select whether your pension scheme in contracted in or out of the State 2nd Pension 
Employee pension contributions (£): Enter the total amount paid by employees into the pension plan, including AVCs
Participation rate (%): Enter the estimated proportion of pension members who would participate in salary sacrifice (between 1% and 100%)
   
 
Employer National Insurance saving (£): Approximate annual saving to the business - see notes below.

Notes:  

For contracted out pension schemes the employer saving is either 9.1%, 11.4% or 12.8% of the member's contribution, dependent on the type of pension scheme and the member's salary.  This calculator uses an average figure of 10% for contracted out pension schemes.  

Hymans Robertson can provide more detailed analysis of the likely saving to the business, and review the impact on members to identify groups who it may not be in their  interests to participate.  

This calculator has been prepared based on HMRC National Insurance rates as at April 2009.  
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