Survey: How is the tapered annual allowance impacting pensions?
The LCP FTSE 100 pensions tax survey reveals how these organisations have been responding to the tapered annual allowance, following its introduction just over one year ago.
- 90% of the FTSE 100 companies surveyed changed their policy on pension provision following the pensions tax changes in April 2016.
- 84% of companies now offer a cash alternative to pensions to employees with lifetime or annual allowance issues.
- Between 10% and 20% is the average percentages of basic salary offered where cash is an alternative to pension.
- More employees are being impacted by these changes, not just top executives.
These findings can help other organisations to benchmark their own pension options.