The majority (90%) of UK pensions professionals do not support the government’s potential plan to remove or cap the employer and/or employee National Insurance contribution (NIC) exemptions for salary sacrifice pension contributions, according to a survey by Aptia – a leading provider of pension administration services. 

The survey was carried out amongst 52 pension professionals including Professional Independent Trustees, in-house Pension Managers and Scheme Sponsors at Aptia’s client event at Tower Bridge on 20th November. 

Aptia found that just 2% of pensions professionals were in support of Rachel Reeves’ rumoured plans ahead of the Budget next week, while 8% were unsure.

Most responders (80%) were in unity in believing that the Government should legislate that no future Budget should remove or restrict accrued tax-free lump sum entitlements. Just 10% felt this was not necessary – whereas 8% again were unsure. 

The surveyed pension professionals were split regarding UK watchdog The Pensions Regulator (TPR)’s Defined Benefit (DB) Pension Funding Code – as 38% believed the code improves the valuation process but 23% disagreed with this sentiment. 

Some 38% were unsure whether the funding code has had any impact. 

Lastly, three-quarters (75%) of pensions professionals surveyed support increased accessibility to occupational scheme investment by allowing loans to members thereby solving immediate life needs. 

Just over one in 10 (13%) of those surveyed would not be in support of this initiative, with the same number saying they were unsure.

Malcolm Reynolds, Aptia’s UK President, said: ‘It is clear that pensions professionals are deeply concerned that removing or capping NI exemptions on salary sacrifice pension contributions would undermine a well-established system that incentivises retirement saving. 

‘Salary sacrifice is not a loophole - it is a proven mechanism that helps employees build financial security and allows employers to offer competitive benefits without escalating costs. Restricting this relief risks discouraging pension contributions at a time when the UK needs to strengthen - not weaken - long-term savings habits.’ 

NOTES TO EDITORS 

Founded to shape the future of pensions, health, and insurance solutions, Aptia is a leading UK pensions administrator and US employee benefits administrator dedicated to simplifying complexity for businesses and individuals. It brings together cutting-edge technology and deep industry expertise to help organisations navigate an evolving landscape with clarity and confidence. 

With a presence in the US, UK, India, and Portugal, Aptia supports over six million people and more than 1,200 clients, delivering solutions that drive efficiency, enhance financial security, and provide peace of mind. 

Aptia’s strength lies in the combination of smart technology and expert teams, ensuring that managing pensions, health, and insurance is more effective. By focusing on innovation, accessibility, and client success, Aptia helps businesses take care of their people, so they can focus on what they do best. 

For more information contact: 
Corinne Gladstone, Aptia Head of Corporate Communications & Public Relations. 
Email: media.enquiries@aptia-group.com 
Tel: 07989 448075