Pension Contributions for Senior Managers

Hi Jo

For private sector employers, the 5% employer contribution seems fairly average for most employees. Big private sector companies though tend to offer their most senior staff access to executive etc pension schemes with considerably higher employer contributions. There are complex HMRC restrictions on the maximum level of employee pension provision, which I’m not at all familiar with in detail and I have no current experience of executive pension schemes but would have thought that the cost of employer contributions to these very variable indeed- ranging say from 10% of pay to 50% or more. Given the brief shelf-life of many large private sector company very senior directors, particularly-generous pension accrual rates are perhaps not too unreasonable?

Hi Jo

For private sector employers, the 5% employer contribution seems fairly average for most employees. Big private sector companies though tend to offer their most senior staff access to executive etc pension schemes with considerably higher employer contributions. There are complex HMRC restrictions on the maximum level of employee pension provision, which I’m not at all familiar with in detail and I have no current experience of executive pension schemes but would have thought that the cost of employer contributions to these very variable indeed- ranging say from 10% of pay to 50% or more. Given the brief shelf-life of many large private sector company very senior directors, particularly-generous pension accrual rates are perhaps not too unreasonable?