Group Employee Benefits For small and medium enterprises Thomas Carroll, Pendragon House, Crescent Road, Caerphilly, CF83 1XX t 029 2088 7733 e info@thomas-carroll.co.uk w www.thomascarroll.co.uk
Contents An introduction to Employee Benefits 3 An Employee Benefits Example 3 Death in Service 4 Income Protection
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Private Medical Insurance Hospital Cash Plans
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About Thomas Carroll Independent Financial Advisers For You and Your Business
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An Introduction to Employee Benefits The most valuable benefit any employer can bring to their employees is the means to ensure financial security – now and in the future. The employee benefits service delivered by Thomas Carroll Independent Financial Advisers can help your organisation to improve employee recruitment and retention, achieve higher levels of engagement and increase loyalty, which will ultimately boost profits. Employee benefits packages have long been associated with larger companies; however, these benefits are certainly within the reach of smaller businesses. Many of our clients are pleasantly surprised by the range of financial benefits they can offer to their employees for a modest cost. An example of a company employing 10 employees can be seen below. Our experienced employee benefits team will work closely with you to develop the most effective benefits programme, tailored to your needs and within your budget. This will provide the best benefits solution for employer and employees alike. Our ongoing reviews and consultation will ensure that the benefits you provide continue to be effective in helping you to achieving your goals of recruiting and retaining the best people. Whether you want to introduce an employee benefits package, or simply refresh your existing offering to your people, we are here to help.
An Employee Benefits Example This is an actual example of a small business which gives you an idea of the investment required to provide a comprehensive package of benefits: EBC Co Limited 10 employees Salary roll of £301,000 Death in Service cover of 4 x Salary to State Pension Age £90 pm Income Protection of 50% of Salary to State Pension Age £115 pm Private Medical Insurance £200 pm Hospital Cash Plan £130 pm Total Investment: £535pm
Death in Service A death in service scheme enables employers to provide a tax-free lump sum benefit if the employee should die in service. Product Features A group life assurance scheme can offer, in the event of an employee’s death whilst they are on your payroll, a multiple of salary as a lump sum benefit to the employee’s family and dependants. Benefits for Employers
It can usually be structured with premium rates that represent a very low percentage of the employer’s payroll The registered schemes premiums are usually allowable as a business expense, thereby reducing Corporation Tax A wide variety of features can be incorporated into any scheme A group life assurance scheme can offer a free cover limit, meaning that medical evidence is often not required when joining a scheme
Benefits for Employees
Any premiums paid on an employee’s behalf are not treated as a benefit in kind Any lump sum benefit is normally payable outside an employee’s estate and free of Inheritance Tax Provides peace of mind and reassurance for families Cover can be continued, up to a certain period, when an employee is absent from work due to sickness or accident
The table below provides information about the cover available under the Group Life Scheme.
Group Life Scheme
Benefit Available
Notes
Lump sum payment in the event of death
4 x Salary
✓
Definition of Salary - Basic Annual Salary, Basic Annual Salary plus fluctuating emoluments (averaged over previous three years). Average of the last three years’ total remuneration
Expiry Age
✓
65 or State Pension Age (maximum 68)
Free Cover Limit
✓
£600,000 of benefit
✓
Trained bereavement counsellor’s helpline and practical advice on issues such as coping with funeral arrangements and probate. This helpline can be used by all employees at your company and also by any family members of the deceased employee.
Added Value Services
Income Protection Long-term sickness can impact on business productivity and performance. A group income protection scheme can help both employers and employees. It provides a financial resource to guarantee an income to employees who are unable to work as a result of illness or injury. We design schemes that strike a balance between providing absent employees with financial support and maintaining an incentive to return to work. This can also include counselling and support services. Product Features Any income benefit is usually paid as a percentage of an employee’s gross pay. The benefit is paid to the employer who then deducts tax and National Insurance payments before passing it on to the employee. It is also possible to protect benefits against inflation by including an escalation option. The scheme can also incorporate free cover limits, meaning that most or all employees can be covered without the need for medical evidence. Benefits for Employers
A scheme can provide excellent financial assistance at an important time and often at a modest percentage of the payroll Contributions are normally allowable as a business expense for the employer, thereby reducing Corporation Tax Cover is also available for pension contributions and employer’s National Insurance contributions Additional counselling and support services including rehabilitation in the workplace, normally free of charge
Benefits for Employees
Any premiums paid on an employee’s behalf are not normally treated as a benefit in kind Financial assistance at a vulnerable time Access to a wide range of support services for the employee and their family The possibility of maintaining retirement plans even through periods of long-term incapacity
Income Protection Continued... The table below provides information about the cover available under the Group Income Protection Scheme. Group Income Protection
Benefit Available
Notes
Provides the employer with an income for employees who are unable to work as a result of either illness or injury 50% of Salary
✓
Definition of Salary - Basic Annual Salary, Basic Annual Salary plus fluctuating emoluments (averaged over previous three years).
Expiry Age
✓
65 or State Pension Age (maximum 68)
Limited Payment Period
✓
Payment limited to 5 years
Cover available with no medical evidence
✓
£65,000 of benefit
✓
Employer and Employee Assistance Programme (EAP) which offers up to eight face-to-face counselling sessions a year, unlimited telephone counselling sessions and unlimited access to online advice and resources. Employees have 24/7 access to a range of personal and work-related information online.
Added Value Services
Private Medical Insurance Group private medical schemes provide for an employee to undergo inpatient and/or outpatient treatment at a hospital or clinic. With legislation increasingly requiring employers to demonstrate a duty of care to their employees, it has never been more important to look after the health and well-being of staff and minimise absenteeism. Product Features These include both inpatient and outpatient treatment with many of the costs such as accommodation, surgeons and anaesthetists’ fees as well as radiotherapy and scans being fully reimbursed. There is often a cash benefit payable to members who, perhaps through emergency or other needs, have immediate treatment in an NHS hospital. Benefits for Employers
Improved health and well-being of staff Reduce sickness absence Medical treatment at a time to suit the needs of the business
Benefits for Employees
Early access to medical specialists Treatment at a convenient location Easy access to medical advice
Private Medical Insurance Continued... The table below provides information about the cover available under a private medical insurance scheme. Private Medical Insurance
Benefit Available
Notes
Inpatient or day patient treatment of acute conditions of brief duration Hospital charges
✓
Including accommodation, meals, nursing care, drugs and dressings
Specialists’ fees
✓
Subject to provider’s fee guidelines
Diagnostic tests
✓
Including blood tests, X-rays, scans and ECGs
Radiotherapy/chemotherapy
✓
Outpatient treatment of acute conditions of brief duration Consultations with a specialist
✓
Any procedures included are subject to the provider’s fee guidelines
Diagnostic tests
✓
Including blood tests, X-rays, scans and ECGs. Outpatient CT, MRI and PET scans will only be covered at a diagnostic centre recognised by the provider
Radiotherapy/chemotherapy
✓
Physiotherapy, chiropractic, osteopathy
✓
Private Medical Insurance
Benefit Available
On specialist referral
Notes
Additional Benefits Nursing at home
✓
Private Ambulance
✓
Parent accommodation when staying with a child covered by the policy
✓
Immediately following eligible inpatient or day patient treatment on specialist recommendation
Child under 12 undergoing eligible treatment – one parent only
£50 per night
For eligible NHS inpatient treatment up to 25 nights per person per policy year. Not available for the first three nights following an accident and emergency admission, or, if you choose option 1, psychiatric treatment
✓
Limited emergency treatment and evacuation when temporarily abroad for a period of up to 90 days per policy year
Oral surgical procedures
✓
Subject to provider’s fee guidelines
GP and stress counselling helplines
✓
Unlimited number of calls
NHS cash benefit Limited emergency overseas cover
Hospital Cash Plans Cash plans provide cover towards the costs associated with routine healthcare after the start of the policy. The cash plan provides money back towards healthcare bills, and can also provide fixed cash pay-outs as well as access to valuable health and well-being services. Product Features A health cash plan can help employees to stay healthy every day by providing access to valuable services and cash benefits towards the cost of their routine healthcare. Employees can claim money back towards essential health costs such as eye care, dental treatment, physiotherapy, diagnostic consultations and much more. They also have access to health and wellbeing services to complement the cash benefits. Benefits for the Employers
Reduce absenteeism and related costs Recruit and retain staff Improve staff morale, motivation and productivity Lower the risk of musculoskeletal litigation in conjunction with a robust stress policy and line manager training Play an integral part of your health and safety policy Provide a valuable employee benefits package Encourage pro-active employee healthcare Cost may be offset against Corporation Tax
Benefits for Employees
No medical required to join Early access to medical specialists Treatment at a convenient location Employee upgrades and partner cover Employees’ dependent children cover Complements existing medical insurance cover
Hospital Cash Plans continued... The table below provides information about the cover available under a private medical insurance scheme. Cash Plan Core Benefits
Benefit Available
Notes
A minimum of two core benefits must be selected Optical Benefit up to £125
✓
Consultation up to £280
✓
Therapy Treatments up to £300
✓
Dental up to £125
✓
Sight tests, prescription charges, spectacles and contact lenses Specialist and diagnostic appointments with a qualified consultant, ECG, X-ray, pathology fees and MRI scanning Physiotherapy, acupuncture, chiropractic, homeopathy and osteopathy Check-ups, dental treatment, fillings, a scale and polish technicians’ fees
Additional Benefits Dental Trauma up to £440
✓
Treatment following accidental injury
Chiropody up to £125
✓
Treatment and advice from a qualified chiropodist or podiatrist
Health screening up to £170
✓
Personal Health Risk Assessment
✓
24HR Freephone Advice Line
✓
Virtual GP Surgery
✓
Approved checks including well woman, well man, breast screening An online assessment with guidance and improvement techniques Fully qualified and experienced counsellors, lawyers and medical staff Confidential GP helpline, Online GP surgery via webcam and Private Prescription
Health Club Concessions
✓
At a national network of health clubs
✓
Payable on accidental death and permanent disability
Personal accident benefit up to £5,000
Thomas Carroll Independent Financial Advisers Our award-winning team will provide you with the highest standard of advice and a wide range of attractive solutions from a simple cash plan to complex pension solutions. We offer a tailored approach and are proud to have built strong and long-lasting relationships during more than 40 years in business. We continue to invest highly in training, regulation and compliance to ensure that we maintain the highest professional standards in a challenging environment. As we work with you and get to know you we will come to an agreement together as to which of our service propositions best serves your needs and interests. Our Chartered Status The Charter is seen as a kitemark for trust and quality, which ensures you receive the highest standard of advice available. Our Independence Our independence allows us to select the most appropriate products, from the entire range available on the market, to exactly suit the needs of your organisation. You can rest assured that our advice is objective, impartial and we always have your best interests at heart.
Testimonial “We would have no hesitation recommending Thomas Carroll for their knowledge and expertise when setting up or reviewing pensions and employee benefit arrangements. They have always provided a prompt, efficient and relevant service.� Alan Virgo Brickability Limited
*Bankhall Awards 2014
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For You and Your Family
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