flexfirst 2014 presentation by Helm Godfrey

AGENDA    

Introduction What is flexfirst? Changes for 2014 Benefit suites – Health & wellbeing – Finance & Security – Lifestyle – Further benefits  How to enrol

Introduction Amanda Baldwin, VP Human Resources EMEA/APAC Neil Blow, Director Total Rewards EMEA/APAC

Benefits and total compensation  Helping to support your financial security, health, well-being and work/life balance goals  Benefits as a key component of your total compensation package  Maintaining the relevance of our benefits offering in alignment with the market and with the appropriate cost structure  New for 2014 – Greater flexibility for you to increase your level of coverage under a number of benefits – A new system to select and manage your benefits

What is flexfirst?

FLEXFIRST…  Our UK benefits programme  Provides core as well as voluntary benefits  Recognises the importance of your financial security, health, wellbeing and work-life balance  Receives significant investment from the Company  Shape to fit your lifestyle, family and circumstances  Cost efficient for you in taking advantage of Income tax and National Insurance savings through salary exchange

HOW DOES IT WORK?  Gives you the opportunity to “exchange” part of your gross salary for benefits  Makes the most of Income Tax and National Insurance savings  Benefit contributions are taken from your salary BEFORE Income Tax and National Insurance contributions are deducted  Each benefit is subject to it’s own tax and NI rules  Some benefits regarded “Benefits in Kind” which will be assessed through your annual P11D  Most benefits taxed through your tax code so it may take some time for your tax code to be adjusted

2014 IMAGE TO BE PROVIDED

LIFE CHANGING EVENTS  The benefit year runs from 1 January 2014 to 31 December 2014  You are committed to the benefits you select for the duration of the year  However, certain events in your life may lead to you wanting to amend benefits  Examples – birth of a child, adoption, marriage/civil partnership  Not all benefits can be changed when an event occurs eg Flex holiday  If you experience a life changing event contact the benefits team at Helm Godfrey

www.flexfirst.co.uk

Changes for 2014

RISK BENEFITS  Flexibility now available for you to increase your life assurance, income protection and critical illness cover to suit your needs

HEALTH ASSESSMENTS  Expanded the range of cancer screens now available to you within the workplace.  Removed the ‘health check essentials’ as this was essentially being duplicated by Nuffield under their more extensive basic examination.

HEALTH & WELLBEING Live well and stay healthy

PRIVATE MEDICAL INSURANCE     

Company provided benefit for all UK employees Bupa - appointed medical provider £2,000 limit on outpatient treatment for all members Does not replace the NHS Provides: – Faster access for consultations and treatment – Private and en-suite accommodation

PRIVATE MEDICAL INSURANCE  No underwriting – your medical history is disregarded  £150 excess per person per policy year Company pays annually: Per employee

2013

2014

£690.96

£728.64

PRIVATE MEDICAL INSURANCE  You may select who to include in the policy, i.e. your partner, children or the whole family, at your own cost  Monthly costs are: 2013

2014

Single parent

£28.83

£30.36

Couple

£57.58

£60.72

Family

£86.42

£91.09

PRIVATE MEDICAL INSURANCE  Claims process known as ‘open referral’  Step 1 – GP advises you of the treatment required and the type of consultant you need to be referred to  Step 2 – You contact Bupa who will offer a choice of consultants based on your clinical needs, with treatment typically available within a 5 mile radius of your home (in London) or 15 miles outside of London.

HEALTH ASSESSMENTS AND ON-SITE SCREENS  Providing you with one-on-one time with a physiologist or doctor to help gain a better understanding of your health  Mammography option, though generally for the over 40s  Personalised report and recommended lifestyle programme  Nuffield Health Medical Centre based in South Quay Plaza, clinics throughout London and the home counties

HEALTH ASSESSMENTS AND ON-SITE SCREENS  Screening can help save lives  UK statistics show 325,000 diagnosed in 2010 and 127,000 lives lost (source: Cancer Research UK)  On-site screening service for the following: – Skin - 110,000 cases a year in the UK – Prostate - claims 10,000 lives a year, mostly the over 45s – Bladder - 5,000 lives a year – Bowel - 15,700 lives a year – Breast - 49,900 cases and 11,633 lives

Type Cancer screens

Gross Cost

Type Nuffield Health

Gross Cost

Gross Cost + Mammogram

Skin

£95 Lifestyle

£194.70

n/a

Bowel

£50 360

£410.85

£500.85

Prostate

£50 360+

£546.15

£636.15

Bladder

£50 Female Health

£245.85

£335.85

£90

n/a

£115

£280

Breast Screening Examination Examination & Risk Assessment

HEALTH CASH PLAN    

Provided by Bupa High value / low cost solution Provides a cash sum for a wide range of benefits Children included free

Personal Health Cover (Level 1)

Personal Health Cover (Level 3)

Family Health Cover (Level 6)

Optical (Maximum 100% cash back)

up to £50

up to £150

up to £105

Dental (Maximum 100% cash back)

up to £50

up to £150

up to £105

Consultations (Maximum 50% cash back)

up to £100

up to £300

up to £210

Specialist treatments: Physiotherapy, Osteopathy, Chiropractic, Acupuncture, Homeopathy (Max 50% cash back)

up to £150

up to £450

up to £300

Chiropody (Maximum 50% cash back)

up to £50

up to £150

up to £90

Allergy testing (Maximum 50% cash back)

up to £50

up to £150

up to £90

Medical appliances (Maximum 50% cash back)

up to £50

up to £150

up to £90

Hospital in-patient (Up to 40 nights)

up to £15

£45 a night

£30 per night

Worldwide emergency cover (Up to 40 nights)

up to £15

£45 a night

£30 per night

Hospital accident admission (Up to 40 nights)

up to £15

£45 a night

£30 per night

Hospital day surgery (Up to 4 days)

£15 a day

£45 a day

£30 a day

Benefits

HEALTH CASH PLANS Individual health cover

family health cover

per month

level 1

£7.37

level 4

£8.23

level 2

£13.00

level 5

£14.95

level 3

£18.20

level 6

£21.45

level 7

£27.95

level 8

£53.08

DENTAL INSURANCE    

Check-ups, fillings, bridges, crowns… Covers hygienist Age limits on children Monthly salary exchange: status

level 1

level 2

level 4

single

£9.33

£17.30

£24.30

single parent

£18.67

£34.60

£48.72

couple

£18.67

£34.60

£48.72

family

£28.01

£51.91

£73.08

GYM MEMBERSHIP    

Helping you to manage your health & wellbeing Company subsidy of £45 per month No joining fee at Reebok £10 pm premium to access your local Virgin Active gym

£94.76 pm

£103.50 pm

EMPLOYEE ASSISTANCE PROGRAMME  Access to professional counsellors to help with personal or work related problems, on matters such as… – Debt counselling – Family or relationship breakdown – Loss of confidence – Alcohol or drug misuse – Stress management – Bereavement – Workplace issues

FINANCE AND SECURITY Peace of mind when you need it most

CORE BENEFITS Company provided

Voluntary option

Life Assurance

2 x salary

Flex up to a maximum of 10 x salary

Critical Illness

2 x salary

Flex up to either 3 or 4 x salary

Personal Accident

2 x salary

N/A

Income Protection

50% of salary

Flex up to either 60% or 70% of salary

LIFE ASSURANCE  Maximum benefit is 10 x reference salary  On first opportunity, you may select the maximum available, or in multiples of 2 x your salary.  If not the maximum initially, you will thereafter be restricted to increases in increments of 2 x your salary.  You may always reduce to the core level at the annual enrolment or as a result of a life changing event.  Restrictions apply for ex DB members  No underwriting required, but you must be actively at work on the day the benefit is due to ‘go live’.

CRITICAL ILLNESS  Facility now available to increase your personal level of cover up to 4 x your reference salary  No restriction on first opportunity. Subsequently you may only increase by increments of 1 x reference salary.  You may reduce the benefit to the core level at the annual renewal or on a life changing event  Maximum benefit of £500,000  Children between 6 mths to 18 years old are included – Automatically covered at 25% of your cover (incl. step children and legally adopted) – Maximum benefit of £20,000

CRITICAL ILLNESS  UK life expectancy 80+ for men & women  Someone has a heart attack every two minutes*  Almost 100,000 people of working age are diagnosed with cancer each year**  Strokes are the third largest cause of death and cause a greater range of disabilities than any other condition***  1 in 9 women will develop breast cancer at some point in their lives**** source: *heartstats.org **Macmillan 2008 *** stroke.org 2008 ****ons

CRITICAL ILLNESS  Illnesses currently covered under the policy: 

    

kidney failure major organ transplant cancer heart attack coronary artery bypass grafts stroke



alzheimer's disease



creutzfeldt-jakob disease



parkinson's disease



multiple sclerosis



motor neurone disease



pre-senile dementia



hodgkin's disease

CRITICAL ILLNESS – MEDICAL UNDERWRITING  Medical underwriting : – pre-existing conditions exclusion  ‘Survivor’ cover - 14 day survival period  No benefit will be paid… – in respect of a critical illness or related condition with which you suffered a critical illness event prior to becoming a member. – in respect of a critical illness where you have been treated for or had been aware of a related condition prior to the date of becoming a member. – for a recurrence of any previously suffered critical illness event. (cont’d…)

CRITICAL ILLNESS – EXISTING CONDITIONS  If you have already suffered or received a previous diagnosis of heart attack, coronary artery bypass grafts, heart transplant or stroke, no benefit will be paid for any subsequent incidences of any of these critical illnesses; and  If you suffer or have previously suffered any malignant tumour(s) under the cancer critical illness, no benefit will be paid in respect of any subsequent cancer whether or not such cancer is connected to or associated with the prior diagnosis of cancer.  Related conditions will be disregarded if a period of 2 years has elapsed from the date of your becoming a member, without you suffering a covered critical illness event

INCOME PROTECTION  Provides a portion of ‘reference’ salary if off sick for 26 continuous weeks or more  Payment will cease on either: – return to work, retirement or death  Payment via PAYE  Employees with reference salaries above c.£100,000 may have to be underwritten  Facility available to increase your benefit to either 60% or 70%.  On first opportunity you may increase to the maximum, thereafter in increments of 10%.  You may reduce to the core level at the annual renewal or on a life changing event.

PERSONAL ACCIDENT       

Cover for accidental bodily injury Death by accident Loss of limbs and eyes Loss of speech Loss of hearing Total permanent disability No underwriting required

PARTNER’S LIFE ASSURANCE     

Benefit provided in multiples of £10,000 Maximum benefit is £150,000 Premiums are age related (age at 1/1/14) and fixed for 2014 Underwriting is subject to 5 questions Answer any in the positive and the member’s declaration is required and underwriting will commence.  Benefits declined if any issues with underwriting

PARTNER’S LIFE ASSURANCE  Nomination of beneficiaries required & benefits payable under discretionary trust  Do remind your Partner to keep this up to date Monthly Premiums

£50,000

£100,000

£150,000

Aged 35

£3.70

£7.40

£11.10

Aged 45

£5.50

£11.00

£16.50

Aged 55

£16.45

£32.90

£49.35

PARTNER’S CRITICAL ILLNESS     

Benefit equal to 2 x your reference salary Maximum benefit of £150,000 Medical underwriting Pre-existing conditions exclusion ‘Survivor’ cover - 14 day survival period reference salary

£25,000

£50,000

£75,000

benefit

£50,000

£100,000

£150,000

£9.28

£18.56

£27.84

monthly premium

DEFINED CONTRIBUTION (DC) PENSION SCHEME  Group Personal Pension  Provided by Scottish Widows  Contributions - two tiers: – non-contributory – Contributory  Financial advice service available for all

you

company

nil

3% 4% 5% 6% 6%+

4.5% 6% 8% 10% 10%

PENSION FUND ACCELERATOR (‘PFA’)  Also referred to as salary exchange  Normally contributions are deducted from net salary, i.e. after the deduction of income tax and NI.  HMRC then pays the income tax deducted (at the basic rate - 20%) to the personal pension policy, n.b. not the NI deducted.  Higher rate tax payers - annual self assessment  PFA will deduct the pension contribution you wish to pay from your gross salary, i.e. before the deduction of income tax and NI.  So what’s the difference?

Traditional payment method £100 per month

£100.00 + £25.00

deducted from net pay employer sends to insurer tax incentive added by government

= £125.00

invested in your policy

25% immediate gain

PFA payment method basic rate tax payer to earn £100 in net pay = £147.06 in gross pay gross minus tax minus ni net cost

£147.06 £ 29.41 £ 17.65 £100.00

Company sends to insurer…

£147.06

deducted from gross pay.

£147.06

invested in your policy

47% immediate gain

PFA payment method higher (40%) rate tax payer to earn £100 in net pay = £172.41 in gross pay gross minus tax minus ni net cost

£172.41 £ 68.96 £ 3.45 £100.00

Company sends to insurer…

£172.41

deducted from gross pay.

£172.41

invested in your policy

72% immediate gain

PFA SUMMARY  The pension fund accelerator is simply a way for you to get a higher monthly personal pension contribution, at no additional cost to you.  Anyone earning more than £100,000 p.a. (from all sources) should seek advice due to the gradual loss of the personal allowance and the 45% tax band above £150,000.

PENSION LEGISLATION & TAX RULES  DWP consultation reviewing scheme design, active member discounts and charge caps. Company is maintaining a watching brief and will respond when the outcome is known.  Annual allowance will fall to £40,000 for the 2014/15 tax year  Lifetime allowance is falling to £1.25million from April 2014

BONUS WAIVER  Option to waive up to 100% of your cash bonus as a pension contribution  Efficient method of contributing lump sums  Accelerates pension funding  Timing driven by HMRC rules  Contribution NOT matched by the Company  Consider ONLY if you are contributing at least 6% as a monthly contribution

FINANCIAL ADVICE  Focus is on your retirement solution  Review your strategy on both… – Contributions; and – Investment  Able to incorporate discussion on other financial matters  Facility now available within flexfirst for you to ask for a meeting

LIFESTYLE Getting the most out of life

FLEX HOLIDAYS     

If planning special trip / anniversary / moving house Decrease by 2 days Increase by 5 days Approval required from your line manager Don’t forget the carry forward rules

CHILDCARE VOUCHERS  Reduce the cost of childcare  Basic rate income tax relief and NI relief available on first £55 per week  Must be ‘approved’ childcare  Savings of up to £80 per month  Government proposal to redesign benefit from April 2015

CYCLE TO WORK     

No income tax nor NI on purchase of a bike Any bike available (not childrens!) Minimum value of voucher is £100 Maximum value of voucher is £1000 Must be used to cycle to work / station

OFFERSFIRST

 Open now and access all year round  Login is your email address  For first time registration your password is your EIN  Several thousand retailers, including…

RETAIL VOUCHERS On-Line

Paper

PERSONAL TRAVEL INSURANCE         

Personal travel insurance for you, partner, or family Global cover including UK (flight or overnight stay) Need to declare serious medical problems Children covered on school trips / back packing holidays up to age 23 if in full time education Winter sports covered Scuba diving covered but not night dives Cost from £59.45 (single) to £84 (family) per annum £35 excess Excludes professional sports / any race / rock climbing

FURTHER BENEFITS A helping hand in life and work

GIVE AS YOU EARN (GAYE)  Make charitable donations from you pay  Full tax relief at source  Donations through Charities Aid Foundation (CAF) either direct to the charity(ies) you wish to support or into your own CAF account, with you making donations to a cause(s) at a time which suits you

EYECARE VOUCHERS  All employees who regularly use display screen equipment are entitled to a full sight test each year  If you require spectacles or contact lenses for use solely with a computer screen we will contribute to the cost (currently £55).

SEASON TICKET LOAN  An interest free loan to help with travel costs  Reclaimed through regular deductions from your net pay

MHFI DISCOUNTS  Up to 50% discount on McGraw-Hill magazine and publications  The list includes Architectural record, Aviation Week & Space Technology Magazine, Standard & Poor's 'The Outlook'

EMPLOYEE REFERRAL AWARD  Incentive award if you recommend a friend or external colleague who is subsequently hired by McGraw-Hill

BUSINESS TRAVEL INSURANCE  For employees travelling on business with travel insurance  Details can be downloaded from the website and should be carried with you when you travel

PROFESSIONAL SUBSCRIPTIONS  Up to £300 per annum towards job related professional subscriptions

TUITION FEES PROGRAMME  Reimbursement of 100% of the eligible registration and tuition fees per year, to a maximum of £3,000 per year  Subject to the course of study being job related and approved by both your division head and HR

BACK UP CARE  3 sessions of backup care per annum – Emergency childcare – School holiday cover – Backup adult and eldercare  Additional support and advice available e.g. webinars on work and family issues, speak to an expert, help searching for childcare

ANNIVERSARY HOLIDAY  An additional day’s holiday once you have completed one year of service to celebrate the date you joined the Company  Taken during the week in which you joined McGraw-Hill subject to your usual holiday approval process

HOW TO ENROL Enrolment open 11 â&#x20AC;&#x201C; 29 November

HOW TO ACCESS  www.flexfirst.co.uk  VPN

NEXT STEPS

 Brochure  Detailed benefit information  Things to know  Contact the providers  Discuss at home?

READY TO SELECT  Click on your benefits basket  Enter Intranet username/password

REQUEST YOUR BENEFITS

NEXT STEPS  The window closes on Friday 29 November  You must actively select – Benefit conditions & premiums may have changed – You are committing for a full year – We need your authority to make changes to payroll  You can access your Total Reward Statement at any time  Benefit providers will be in the Atrium during the enrolment period  Floor walking later in the month…coming to a desk near you  Email mhfi@helmgodfrey.com if you would like a visit at your desk

NEED HELP? e: mhfi@helmgodfrey.com

t: 0207 614 1045