Pensions body warns MPs on salary sacrifice change impact

In a parliamentary note to MPs, the SPP said changes to salary sacrifice that are set to come into effect from 2029 would likely "reduce pension saving" and cause employers and employees to "face higher costs". With up to one quarter (26%) of basic rate taxpayers expected to be affected, the SPP said changes could lead employers to make offsets, such as with lower pay increases or a reduction in pension contributions. While employers are expected to pay £20m in "one-off administrative costs", as well as 15% National Insurance contributions on amounts above the new limit, they may also...