Greater London Authority (GLA) partnered with My Money Matters in August 2023 to provide their employees with a valuable employee retirement benefit – a Shared Cost Additional Voluntary Contribution scheme (Shared Cost AVC scheme).
Recognising a knowledge gap when it comes to pensions and wider financial wellbeing, GLA wanted to ensure their staff could access the education they needed to plan confidently for the future. With living costs increasing, they also wanted to ensure that their 1107 Local Government Pension Scheme (LGPS) members could utilise the Shared Cost AVC benefit to maximise their retirement savings via National Insurance contribution (NIC) and Income Tax savings.
The goals were:
• Grow employee awareness of the LGPS and Shared Cost AVC benefits
• Educate staff on retirement planning and the tax advantages of AVCs
• Boost benefit participation amongst workforce
• Generate additional employer savings through reduced NI contributions.
The Results
Since the launch of our partnership in August 2023:
120 employees paying into Shared Cost AVCs
Employees contributing an additional £72,947 per month via salary sacrifice
436 employees registered to financial wellness platform
Employer generating savings of over £10,000 monthly
Total employer savings via NI reductions: £148,000
How we did it:
Shared Cost AVC benefit for tax-efficient savings
Shared Cost AVCs are a cost-efficient way for LGPS members to increase their retirement
income via a reduction in Income Tax and NICs on whatever they pay into the scheme.
Alongside this benefit employees had access to an LGPS retirement calculator, to help them
calculate what they’ll need to save for their ideal retirement income.
Tailored financial education resources
Employees were invited to undertake a personalised assessment of their financial landscape.
After receiving their financial health check score, employees were invited to join educational
webinars relevant to them to help boost their knowledge.
Live webinars and on-demand content
Webinars were available to employees covering topics ranging broadly from the LGPS and
retirement planning, savings and investments, to insurance, estate planning and money
management.
1-1 personalised financial coaching
Employees accessed to 1-1 coaching sessions with an Education Specialist to answer any
questions they had and provide them with the best information to make informed decisions.
Engaging employee communications
The above benefits were communicated to employees via bespoke digital posters, banners,
intranet posts, newsletter copy and promotional emails.
To learn more about how My Money Matters can support your employees on their journey to financial freedom, visit www.my-money-matters.co.uk today. Any questions? Reach out at info@my-money-matters.co.uk.
