I agree We use cookies on this website to help us provide the best user experience. By browsing this site you agree to their use - more information is available here.

Barnett Waddingham
0333 11 11 222

How employers can use DB SSASs to reward key employees

Published by Bhargaw Buddhdev on

Despite the current trend to move away from defined benefit (DB) provision in favour of more flexible defined contribution (DC) arrangements, employers wanting to maximise provision of pension benefits for key employees without breaching the Annual Allowance (AA) and Lifetime Allowance (LTA) limits (see our briefing note here on the AA and LTA limits) may find a DB SSAS suits their needs.

Furthermore, such pension provision is a significantly more tax-efficient way of enhancing remuneration packages compared with additional salary. Traditionally SSASs were set up on a DC basis and there is more information about DC SSASs here.

“The DB SSAS can provide generous benefits - (for example a high accrual rate, higher spouses pensions and even index linked increases to pensions in payment) - and can be flexible from year to year and are at the discretion of the sponsoring employer.”

To continue reading, please download the briefing note below.

How employers can use DB SSASs to reward key employees
330.9 KB | PDF

About the authors

  • Bhargaw Buddhdev

    Bhargaw Buddhdev is a pensions actuary and he is our expert for dealing with pension taxation issues for individuals and their employers.

    View Biography

  • John Cormell

    John acts as Scheme Actuary to a number of his clients and is also one of the firm’s experts in guiding pension schemes through PPF Assessment Periods.

    View Biography

Updates delivered to you

Stay ahead with our latest comment, expert insight and event details.