Coda, the business software company, replaced its three trustee-based pension schemes with a salary sacrifice group personal pension plan in April 2006 ahead of the company’ s demerger with its SciSys division in September. Dave Belmont, group company secretary, said salary sacrifice allowed the company to increase the contributions it made to employees at no extra cost.
CodaSciSys previously contributed 6.75% of salary conditional on an employee contribution of 3.25%. Following the demerger, the minimum contribution for employees stayed the same, but the amount from the company rose to 7%. Should employees opt to invest 5% the company pays 7.25%, rising to 8.5% in return for a 15% employee contribution. The impact of the changes were demonstrated to staff prior to the scheme’s launch via a communication campaign undertaken by consultants Premier Employer Solutions.
As a result there was a 97% take-up rate with just 12 employees opting not to take part in salary sacrifice. Belmont says that 50% of employees have also chosen to increase contributions.