Introduction David Jones - Senior Manager, Benefits EMEA
Agenda Introduction What is flexfirst? Benefit suites • Finance & Security • Health & Wellbeing • Lifestyle • Further benefits How and when to enrol
FLEXFIRST • Provides core and voluntary benefits • Recognises the importance of your financial security, health, wellbeing and work-life balance • Tailored to fit your lifestyle, family and circumstances • Receives significant investment from the Company • Cost efficient for you in taking advantage of income tax and national insurance savings through salary exchange
Changes for 2015 Automatic roll over of 2014 selection, except: • Cycle To Work • Health Screening Further gym added (Fitness First) for coverage away from Canary Wharf
The Benefit Suite Philip Thrush - Head of Client Management Helm Godfrey
Salary Exchange - how does it work? • • • •
Gives you the opportunity to “exchange” part of your gross salary for benefits and save national insurance and tax. Each benefit is subject to its own tax and NI rules Some benefits regarded as “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
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 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 Provided as core benefit at x 2 of salary 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’.
PERSONAL ACCIDENT • • • • • •
Provided as a core benefit - 2 x salary Cover for accidental bodily injury Death by accident Loss of limbs, eyes, speech or hearing Total Permanent Disability No underwriting required
INCOME PROTECTION • Provided as a core benefit – 50% of salary • Provides a portion of reference salary if off sick for 26 continuous weeks or more • Payment will cease on your 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%.
CRITICAL ILLNESS • • • •
Provided as a core benefit - 2 x salary Pre-existing conditions excluded Survivor cover - 14 day survival period No benefit will be paid: − in the event you suffered a critical illness prior to becoming a member. − in the event 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.
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 Rates changed in 2015 to Unisex age related: − If under 39, rates better − Over 40, rates increased − Check rates by modelling on site
PARTNER’S LIFE ASSURANCE • • • • •
Benefit provided in multiples of £10,000 Maximum benefit is £150,000 Premiums are age related and fixed for 2015 Underwriting is subject to 5 questions Benefits declined if any issues with underwriting
• Exceptionally low cost cover
PENSION SCHEME - DEFINED CONTRIBUTION (DC) • Group Personal Pension • Provided by Scottish Widows • Contributions - two tiers: − non-contributory − contributory • Financial advice service available for all • Annual Management Charge is 0.5% p.a. • Option to select up to 10 funds from 130 available
You
Company
nil
3%
3%
4.5%
4%
6%
5%
8%
6%
10%
6%+
10%
www.scottishwidows.co.uk/gpp
AUTO-ENROLMENT (Workplace Pensions) • Introduced in 2012 as legislation
• Employees are automatically enrolled into the pension arrangement, from month 2. • If employee does not wish to contribute, company still pays 3% of basic salary • Default Investment Option (Adventurous) unless actively changed by member (State Street 50/50 Global Equity tracker) • Rates increase as minimum in 2017 to 3% member & 4.5% company contribution
PENSION LEGISLATION & TAX RULES • DWP consultation reviewing scheme design, active member discounts and charge caps: − Currently 0.5% p.a. for active members − Leaver charge is 1% p.a. 3 months after leaving MHF − Higher charge reducing in 2015 from 1% to 0.75% p.a., then withdrawn 2016 • Annual allowance now £40,000 for the 2014/15 tax year • Lifetime allowance is £1.25million • May reduce with change of Government - will be monitored and communicated
PENSION LEGISLATION PROPOSALS FOR 2015 & 2016 • • • • • •
Annuity Purchase & Drawdown options continue Option to cash in 100% of fund at retirement 25% maximum Tax Free Cash limit remains Part encashment of fund allowed without triggering annuity 55% death taxes withdrawn if over 75. Relaxing of regulation for Final Salary transfers (Private Sector) to take advantage of the flexible retirement rules • State pension becomes “Flat Rate” in 2016 for all
FINANCIAL ADVICE • Focus is on your retirement expectations • Review your strategy – Contributions – Investment – Transfers of Legacy pensions into MHF scheme • Able to incorporate discussion on other financial matters. • Initial consultation free of charge • Meetings can be arranged via the FlexFirst platform for dates listed where Helm Godfrey in attendance
HEALTH & WELLBEING Live well and stay healthy
PRIVATE MEDICAL INSURANCE • • • • • • • •
Company provided benefit for all UK employees Must select to join Medical History Disregarded £150 per policy year excess paid by member BUPA - appointed medical provider £2,000 limit on outpatient treatment for all members Does not replace the NHS P11D taxable benefit in arrears
• Open Referral when claiming - always contact BUPA first
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
PRIVATE MEDICAL INSURANCE • Company pays employee annual cost (taxable Benefit in Kind) • 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 10% lower than 2014
Company pays annually
Cost
Per employee
£655.76 p.a.
Cover Type
Cost
Single parent
£983.68 p.a.
Couple
£1311.56 p.a.
Family
£1,639.48 p.a.
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 Call 0800 282 193 − Workplace issues
EMPLOYEE ASSISTANCE PROGRAMME • • • • •
Completely confidential HR not notified of contact 24 Hour helpline via OPTUM No tax or NI on benefit Available to family • Parent, sibling, spouse, dependent child under 21
CANCER SCREENING Type Cancer screens
Gross Cost
Type Nuffield Health
Gross Cost
Gross Cost + Mammogram
Skin
£95 Lifestyle
£200
Bowel
£50 360
£423
£513
Prostate
£50 360+
£563
£653
Bladder
£50 Female Health
£253
£343
Breast Screening Examination Examination & Risk Assessment
Gross Cost £90 £115
HEALTH ASSESSMENTS • 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 CASH PLAN • • • • •
Provided by BUPA Low cost option but not as comprehensive as BUPA PMI Reimbursement can offset excess in some cases Provides a cash sum for a wide range of benefits Additional areas that PMI does not necessarily cover: − Optical − Additional Physiotherapy (if exceeds Outpatient limit) − Hospital in patient subsidy • 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
DENTAL INSURANCE • • • •
Check-ups, fillings, bridges, crowns Covers hygienist Age limits on children Monthly salary exchange 4% lower than 2014 Status
Level 1
Level 2
Level 4
Single
£8.92
£16.54
£23.29
Single Parent
£17.84
£33.08
£46.58
Couple
£17.84
£33.08
£46.58
Family
£26.75
£49.63
£69.88
GYM MEMBERSHIP • Helping you to improve your health & wellbeing • Company subsidy of 50% of membership fee, up to a cap of £45 per month • National Virgin Active now via flex and not separate payment • No joining fee at Reebok
£97.58pm CW £105 national
£113.08 pm
£32-74 pm
FITNESS FIRST ADDED • Added to provide greater local access • Tiered charges depending on locations - check the site for coverage • Subsidised to 50% (max £45 p.m. from MHFI)
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
• Anniversary holiday each year
CHILDCARE VOUCHERS • • • • • • •
Reduce the cost of childcare Basic rate income tax relief and NI relief available on first £55 p.w. Higher rate relief & NI on £28.62 p.w. Must be approved childcare site Savings of up to £80 per month Government to redesign benefit from April 2015 If you are in the old plan before Autumn 2015 you can stay in whilst at MHFI • If childcare costs lower than £10,000 p.a. it could be better in old plan
CHANGES TO CHILDCARE VOUCHERS 2015 • Can continue in old voucher programme if signed in by launch and both parents can purchase old vouchers • New system in Autumn 2015 • Flat rate tax relief 20% on each child up to £10,000 p.a. • Voucher held on line & run by NS&I • Fixed for a quarter then reapply • Only one parent claims but declares partner’s income • Can recall your payment at any time from NS&I account • Children under 12 • Max income £150,000 per parent & both working
CYCLE TO WORK • • • • • • • • • •
No income tax nor NI on purchase of a bike so save 32% or 42% Any adult bike available Minimum value of voucher is £100 Maximum value of voucher is £1000 Must be used to cycle to work / station Can buy 2 bikes for each end of journey if total is under £1000 Source bike first from Evans or Halfords Submit voucher amount on site No change if don’t spend whole voucher Deductions start January
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
SEASON TICKET LOAN • An interest free loan to help with travel costs (£5000) • 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
OFFERSFIRST
RETAIL VOUCHERS On-Line
Paper
WHEN TO ENROL Enrolment open 10 – 28 November
ASSISTANCE WITH ENROLMENT • Floor-walking by Philip Thrush − Thursday 13th : 10:00 -18:00 − Tuesday 18th : 11:00-18:00 − Thursday 20th : 12:00-18:00 − Friday 21st : 11:00-17:00 − Tuesday 25th : 13:30-18:00 − Thursday 27th : 10:00-18:00 • Provider Benefit Fair − 18th November in Atrium
HOW TO ACCESS • www.flexfirst.co.uk • VPN
NEXT STEPS • Detailed benefit information • Things to know • Contact the providers
READY TO SELECT • •
Click on your benefits basket Enter Intranet username/password
REQUEST YOUR BENEFITS
NEXT STEPS • • • • •
Log into FlexFirst to check your details and select your benefits Your window will be open for 3 weeks Check dependents Benefits will be effective from 1 January Email mhfi@helmgodfrey.com if you would like a visit at your desk
NEED HELP? e: mhfi@helmgodfrey.com t: 0207 614 1045