The Association of British Insurers has released their proposition to incentivise employers to contribute to their employees pensions.
Currently, for every £100 contributed on an employees behalf, it costs the employer £80. Under the ABI proposals, the Pension Contribution Tax Credit could cut the figure to below £60. The proposals seem to have been well received by the pensions industry but we will wait for the Government's reaction. According to Norwich Union, 73% of employers surveyed said they would be more committed to a pension scheme if a tax credit was in place.