Salary sacrifice and pensions auto-enrolment

The Pensions Act 2008 will introduce a number of major changes to workplace pensions when it comes into force in October 2012, not least compulsory employer contributions. Employers looking to mitigate these additional costs are considering the use of salary sacrifice as a delivery mechanism, and while there are a number of additional points to consider over and above the usual requirements to ensure a salary sacrifice is effective, it will be possible for employers to mitigate their costs. This article explores the employment tax and NIC aspects of the new pensions landscape.