Decision

Award contract for 2 plus 1 years to My Money Matters (MMM) for an estimated value of £25,000* per annum. There is a 5% charge applicable which is invoiced against the total monthly contributions. The cost for this will be marginal as it is dependent on the number of members. *It has been identified that the cost associated with SCAVCs is likely to be offset against the Employer National Insurance (NI) savings

Reasons for the decision

The LGPS has a provision within its regulations to allow an employer to also contribute to an employee’s AVC arrangement. This is known as a ‘Shared Cost’ AVC which can be provided through a salary sacrifice arrangement. A salary sacrifice arrangement is a popular and legitimate method used by employers to provide employees with a benefit.

By doing so this will boost the Council’s employee benefit scheme and allow further savings to both the Councils Employer and Employee National Insurance Contributions (NICs), especially significant since the Employer NI % inflation and threshold decrease in April 2025. The scheme offers employees an opportunity for efficient retirement planning, and similar schemes already operate successfully across many other authorities.

Alternative options considered

It is not possible to operate this type of scheme under self admin. It is only LGPS standard AVCs which are currently operated in house by the Payroll team. However standard AVCs do not provide the additional benefits of Employer and Employee NI savings. My Money Matters (MMM) is the only company that operates and manages this scheme.