Prudential now supporting voluntary pension contributions, on salary sacrifice basis
Earlier this year, some of you asked Prudential about sharing the cost of employees’ additional voluntary contributions (AVCs). Essentially, this arrangement would mean that staff could make additional voluntary contributions as part of a salary sacrifice.
At the time, Prudential did not facilitate salary sacrifice arrangements for AVC contributions, but promised to review the situation and offer a further update.
Prudential are now accepting employer contributions to additional voluntary contributions
Prudential are now in a position to accept employer contributions to your members’ AVC plans and can support employers in offering salary sacrifice shared cost AVC (SS SC AVC) arrangements to eligible staff.
If you want to implement an SS SC AVC arrangement, you must comply with Prudential’s terms of business, as well as notifying your administering authority. This will ensure that contributions are administered correctly and that information provided to your members is correct and compliant.
We also recommend that you take specialist tax advice when setting up the arrangements, in order to meet all HMRC requirements.
Contact to implement
If you want to implement a SS SC AVC arrangement, email Prudential in the first instance. Prudential will then contact you to discuss the process, timescales and next steps.