Newcastle Building Society has become the first building society anywhere in the UK to become an accredited Living Pension employer.
The Living Pension is a new Living Wage Foundation accreditation for employers who want to help workers boost their pension pots.
Newcastle Building Society has been accredited as a Living Pension employer. As an early adopter of Living Pension its commitment will see all new colleagues who join the organisation after 1st April, 2024 receive a default level of pension that is aligned to the Living Pension standards (5% colleague contribution and 7% Society contribution). Existing colleagues will also be advised on how to increase their contribution in line with the standard if they wish to do so.
The Living Pension is a voluntary savings target for employers who want to help employees, especially those on low pay, build up a pension pot that will provide enough income to meet basic everyday needs in retirement. It launched in March 2023.
Karen Brewerton, Chief People Officer at Newcastle Building Society, said: “We’re proud to be the first building society in the UK and the first organisation in the North East to become an accredited Living Pension employer. Our Purpose is to connect our communities with a better financial future, and this extends to our colleagues with the offer of a pension that provides security and stability in retirement. Our Living Pension employer status is a reflection of the commitment to our wider reward package, that plays an important role in us delivering a great place to work where people are empowered to realise their potential.”
In 2023 Newcastle Building Society retained its Investors in People (IIP) Platinum status – the highest level that the IIP body awards – with only 6% of organisations assessed receiving the status. The Society also remains committed to being a Real Living Wage employer, and recently formed part of a city-wide action group to make Newcastle a living wage city and to encourage more employers in the region to pay the Real Living Wage, thus seeking to positively impact its communities.
Katherine Chapman, Director of Living Wage Foundation, said: "We are delighted that Newcastle Building Society has signed up as a Living Pension Employer. Newcastle Building Society’s commitment will drive up pension savings for workers so that everyone can afford to live in retirement. As both the first employer in the North East and the first Building Society to become Living Pension accredited, Newcastle Building Society is setting a powerful example to other employers in their region and industry.
“For over 20 years, the Living Wage campaign has championed decent wages, working with over 15,000 employers, securing over £3 billion in pay rises for low paid workers and transforming millions of lives. Our Living Pension accreditation builds on the foundations of the real Living Wage, with an independently calculated benchmark for Living Wage Employers to provide workers with security and stability both in-work and in retirement . Newcastle Building Society are a trailblazer in the UK, joining a growing movement of over 40 employers putting their workers' financial futures first ."
The Living Pension savings target is 12% of a full time Living Wage worker’s salary, made up of a minimum 7% employer contribution. This builds on auto-enrolment, and a minimum contribution level set by the government. Through auto-enrolment, employers must contribute at least 3%, and employees pay the remaining 5%. The Living Pension savings target can also be met as a cash amount of £2,800 a year. The employer contributes at least £1,630 to this cash amount.
