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Corporate Planning » Group Pensions » Salary Exchange

Salary Exchange

Salary Exchange is when an employer enters into an agreement with an employee, so that the employee exchanges part of their salary (or bonus) for an employer pension contribution.

This is normally a very tax efficient way of structuring a Group Pension arrangement, because an employer can potentially make a National Insurance saving, and some or all of this saving can be used to increase the employer contribution.

If you represent an employer we can provide full support and advice in relation to this area, in conjunction with the new or existing scheme to make matters as efficient as possible.

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