Welcome

Whilst the law stipulates that you need to operate a pension scheme if you have eligible workers, every employer will approach this challenge with differing objectives and requirements. Because of this we do not offer a packaged solution, but prefer to work with you to design the shape of scheme that most closely aligns with your needs.

In its simplest form, automatic enrolment involves the setting up of a Qualifying Workplace Pension Scheme, writing to all your employees, joining eligible workers or those that are not eligible but ask to join, and making contributions on their behalf. However, there is much more to this than meets the eye, for example what systems and processes will you operate to minimise your administration workload and at the same time maintain the statutory records required to evidence ongoing compliance? We provide all the support you need to successfully launch and operate your automatic enrolment pension scheme.

Since the commencement of automatic enrolment in 2012, we have worked with dozens of organisations ranging from just a handful of staff to over 1,000 and have a complete and practical understanding of what is required and this enables us to provide the support that you need.

 

In the lead up to your Automatic Enrolment Staging Date you may well have taken some time to ensure that the approach you are taking meets the rules at that time. However, Automatic Enrolment is a continuing responsibility for employers. An employer’s duties do not end after their staging date. Our experience is that over time processes and procedures can drift somewhat and full compliance with the rules may suffer as a result. Not only that, but the rules themselves have developed over the years and are likely to continue to do so.

Workplace pensions reform introduces new duties and safeguards that employers must comply with. The legal safeguards are intended to protect individuals, meaning there are things the employer must not do, both before a person starts working for them, before they become a scheme member and once they are a member of the pension scheme. Our Pension Scheme Governance Review process is designed to keep you aligned with the rules and best practice whilst also considering your objectives. Good practice would be to undertake a Governance Review annually.

 

We all want staff to build a decent pension ‘pot’ so that they can expect to retire with a reasonable lifestyle, but if they do not understand the pension scheme, then engagement will be poor and so will the outcomes. In any scheme, typically there will be 1 or 2 individuals that will be prepared to take the time to work out how the scheme can best be utilised for their benefit, but this is definitely not the norm. Most need some extra hand holding.

Our experience shows that the best way of providing that support is face to face, either via a presentation, individual meetings or a combination of both. At other times we can be available via telephone and/or email to deal with day to day queries members may have.

Staff on the whole do worry about funding later life but sadly do not understand the options available to them and with the process of Automatic Enrolment encouraging apathy, without a proactive approach, this position will not change.

Pension Schemes have always been seen as a recruitment and retention tool and this is unlikely to change. However, with all employers being required to provide a scheme, standing out from the crowd is more difficult.

By having the right strategy for your organisation, for example utilising salary sacrifice or paying above the minimum required contributions, by communicating the value of the benefits to staff regularly, by providing pension education support to staff and generally raising the visibility of your Scheme, you can derive the maximum benefit from your pension spend.

Employees become loyal and long serving members of staff when they feel that they are appreciated and supported by their employer; and from your perspective low staff turnover saves on disruption and training costs, loss of key knowledge from your business, and possibly avoids recruitment agency fees. Our consultancy service will support you as required in a flexible and tailored manner.

There are two aspects to on-site support. The first is providing employer level assistance which could include a Pension Scheme Governance Review and advice regarding changes in legislation and best practice that could influence how you operate the pension scheme. It could also be to discuss staff communication strategies and objectives. Typically, a formal annual employer meeting would be sufficient but that depends on circumstances.

The second aspect is support for your staff and this can include:

• Staff presentations to provide updates about both the pension scheme, law and best practice and any specific messages you would like to impart
• Individual meetings which allow staff to discuss their circumstances confidentially and to ensure that the approach they are taking to the pension scheme is the right one for them at that time. EBP does not provide regulated financial advice in these meetings, but rather we aim to educate and empower the individual to make their own decisions from a position of understanding.

We are always available via telephone and email to answer day to day queries you or your staff may have with regards to the pension scheme. Furthermore, we can provide bespoke scheme literature as well as periodic briefings where, for example, there has been a significant change in the law or change by the pension scheme provider.

Our off-site remote services are available to provide you with just the right level of support that you require to operate your scheme efficiently.

To be effective we would need to gather detailed information about your organisation, objectives and the pension scheme(s). We will then assess all aspects to provide you with a Pension Scheme Review Report which will present recommendations for your consideration. We can then provide support implementing any changes required.

We have seen many reasons for undertaking a review but the most common at this time are:

• Compliance with automatic enrolment legislation.
• Dissatisfaction with current pension scheme provider services and support
• Seeking to reduce employer costs
• Seeking to reduce member charges
• Harmonisation of benefits

Making changes to existing pension benefits can indeed have legal implications, especially if you are seeking to alter the nature of the pension benefits you provide (e.g. reduce employer contributions or increase staff contributions). There may be a need to consult staff and consider contracts of employment and staff handbooks as part of meeting your legal obligations. We can guide you with regards to the regulations, and if you do not have support on hand to assist you with these matters, we can provide introductions to employment law experts.

Absolutely not.  Ultimately it depends on what you have in place and what your objectives are, but we always look to see whether what you have in place can still meet your requirements or be amended before we look to alternatives.

Typically, we provide a centralised link between the main scheme service providers (actuary, auditor, pension scheme administrators etc.) and the Trustees.  Examples of support are:

• Trustee Meeting preparation and Minutes
• Liaison with HMRC and TPR including Scheme Returns
• Member communications
• Full market analysis for any member annuity purchase

We can support full investment reviews for defined benefits schemes taking into account the Scheme liability shape, investment timeframes and other objectives. As an independent consultancy, we have access to the full range of investment options so we can design a solution that suits you.

For defined contribution schemes, we can work with Trustees who require a bespoke investment fund range and/or a default fund review. Our work will ensure that the investment approach is appropriate for the needs of the Scheme members.

We also provide member announcements and other explanatory material to aid their understanding of their investment options and for those members not too far away from drawing benefits, how these relate to the methods they may choose to receive their income in retirement.

Group Life Assurance gives peace of mind that families will be financially looked after if the worst happens. Typically, the benefit is expressed as a multiple of salary but can be a set amount.

It is a relatively cheap benefit to provide and easy to run, usually only requiring your input once a year at renewal. In addition, Medical Underwriting is kept to a minimum or not required at all and so cover can be available for staff that they could not secure privately elsewhere. Any bereavement counselling support offered alongside the policy often extends to line managers and colleagues, as well as family members and so extends the benefits within the workplace. Generally these schemes are written under Trust so that the sum paid to the dependants is normally free of Inheritance Tax.

Group Income Protection is ultimately designed to alleviate financial hardship, brought on by long-term illness or the effects of an accident. However, it is so much more than a simple insurance. In fact, one of the most valuable features of these schemes are their Rehabilitation Services that from a very early stage in an absence, works with the individual to return them to your workforce at the earliest possibility.

If a return to work is not possible then it provides financial security by paying staff a percentage of their pre-claim income for either a set period of time or until they would have reached State Pension Age. Any claim would commence at the end of a waiting period which can be weeks or months depending on your sick pay policy and budget. The Employee remains on your books and therefore can return to work if and when deemed fit to do so. In the event that a partial return to work occurs, then the insurance continues to pay the claim but at a reduced rate.

There are many design features to consider when considering a Group Income Protection Scheme and so understanding these and the financial options is important.

Critical Illness Cover provides a lump sum pay-out upon the diagnosis of a life-threatening condition. The level of payment is selected by you to suit your objectives and budget. In addition, policies can provide access to other services such as medical second opinions, treatment sourcing and access to a personal nurse adviser for both the claimant and their immediate family.

A group critical illness lump sum can supplement sick pay, pay off debt such as their mortgage so they can remain in their home, or perhaps go towards additional costs faced by the employee, such as home modifications or private therapeutic care. It can assist employees in adapting to their new circumstances and hopefully return to work.

 

Private medical insurance is designed to cover the cost of private medical treatment for what are known as ‘acute’ conditions. An acute condition is an illness, disease or injury which will respond to treatment in the near future, as against a chronic condition where complete recovery is unlikely. Private medical insurance is designed to supplement the benefits available under the National Health Service which is excellent at providing primary care for chronic conditions and in the event of accidents and emergencies. Private medical insurance is therefore used to provide choice and flexibility so that treatments can be undertaken at a time to suit the claimant, in a hospital near to work or home and family, as appropriate, with a preferred specialist and in a private room with some home comforts.

From an employer’s point of view, the provision of group private medical insurance enables swift intervention, recovery and early return to the workplace where there is a health problem which prevents an employee from working effectively, or distracts them from their duties. This benefit is also highly regarded by the employees as it is a cost effective way to obtain this type of insurance which can be considerably more expensive on an individual basis.

There are a number of other options available and some of these are listed below:

• Sick pay insurance – An approach to short-term sickness absence that complements existing sick pay policy.
• Cash plans – Typically designed to help staff budget for the cost of visiting the dentist, optician, physiotherapist and a number of other healthcare professionals.
• Dental plans – Supports employees maintaining good oral health, cover starts from regular check-ups through to treatment of mouth cancer.

This is a significant part of the process taking into account your objectives and budget to provide solutions that work for your organisation. It might be that you are looking for a single benefit to be structured for your needs, or it could be that you are looking to introduce a package of benefits where compromises might be needed to remain within your budget.

EBP has years of experience helping clients design the Workplace Insurances that they require or reviewing insurances that are already in place.

There are many workplace insurance providers in the market place and our independence allows us to work with any provider that offers the right solution.

If you are looking to set up a new scheme or review existing arrangements, following the design consultancy phase, we conduct comprehensive research across the relevant markets to map the design to a particular product. Cost is an important consideration in this process, but ancillary benefits can be offered at no extra cost by some insurers (e.g. Employee Assistance Programmes or Bereavement Counselling) which you may already be paying for elsewhere, and so these are also taken into account to target optimum overall value.

Once arrangements are in place, administration is centred around the annual renewal. We will write to you with the requirements for the renewal and obtain up to date staff data from you. This leads to the production of premium accounts which we check thoroughly for accuracy before issuing them to you.

For some insurances the rates obtained are guaranteed for a period of time, usually 2 or 3 years, at the end of which we discuss with you the new rates and the value in taking any action to check for market competitiveness.

Group presentations are a very effective communication tool and can be used for many purposes, for example:

• To launch a new benefit
• To update staff about their benefits
• To target a specific employee group, e.g. those closer to retirement
• To assist in change management

The key is to be able to present complex topics in a way that staff understand.

Group workshops are a useful way of communicating key aspects of an employee benefit package. This is especially true when a particular segment of the workforce is isolated – for example it could be a general session for new staff or a focussed session for staff nearing retirement. Workshops are most effective with smaller numbers as this allows lively debate with attendees feeling comfortable asking questions and engaging in discussions.

An individual meeting gives an excellent opportunity for a member of staff to confidentially ask direct questions related to their employee benefits package and their own circumstances. Whilst regulated financial advice is never provided in these sessions, they are no less useful because of the personal nature of the meeting. Individual meetings often immediately follow workshops or presentations, so the employee gets a few minutes of confidential time.

EBP can provide ad-hoc email and telephone support to staff so that they can raise queries.  These could be about technical aspects of their benefits, interfacing with the benefit providers, relating their own plans and goals to their benefits, etc.

Making such support available is a significant improvement on the services offered by provider call centres as it is personal, effective and quick.

If onsite meetings are not possible for any reason, then there is the option is to conduct meetings by telephone.  This would involve an email communication ensuring that the individual had appropriate information related to the purpose of the meeting and then a scheduled meeting is conducted with any required follow-up.

Each individual benefit product provider will normally supply information about their products, but unless you are a very large organisation, this will be generic in nature. EBP can provide communication material such as a Pension Scheme Guide, that is tailored to your exact needs. This can reinforce your benefit ‘brand’ and provide focussed information to your staff using your own company logo.

Whenever there is a need to communicate a specific message then EBP can provide supporting documentation.  It could be that there is significant organisational change, a desire to promote a particular benefit or a drive to increase employee pension contributions.  In addition, it could be a single communication or a number of communications over a period of time.  Whatever your requirements then we can assist.

We can provide in-house financial advice through EBP Financial Planning – please see the link at the top of this page or click here for further details.

There are many firms offering financial advice. It is critical that they are regulated by the Financial Conduct Authority so that the advice provided falls within the UK regulatory framework. Two good sources to find an adviser are:

• IFA Promotions Helpline – www.unbiased.co.uk
• The Personal Finance Society – www.findanadviser.org