Employee Benefits from Wingate Benefit Solutions

Workplace Pension Reform Update – May 2012

Paul Weeks — Tue, 01 May 2012 09:53:04 +0000

With Auto enrolment looming, a couple of last minute tweaks are still being made to the proposed legislation. Two of these area’s are highlighted below.

Staging Dates (the date when the legislation applies to your business)

On Friday 23rd March the Department for Work and Pensions (DWP) published a consultation setting out its proposals on staging dates for employers with less than 250 people in their PAYE scheme.

It should be stressed that at the moment, this is only a consultation document and as the consultation doesn’t close until 4th May, we probably won’t have the definitive dates until June at the earliest.

If you would like to know your provisional staging date, please contact us.

Earnings Thresholds

The DWP also published a response to their consultation ‘Automatic enrolment earnings thresholds review and revision 2012/2013′ on Monday 26th March.

Quite sensibly, the thresholds that have been laid before parliament have been aligned with tax and National Insurance Contribution (NIC) limits – most employers and payroll providers will already be familiar with these:

£8,105 for the automatic enrolment earnings trigger,

this is also the level of the standard tax personal allowance

£5,564 for the lower limit of the qualifying earnings band

this is also the NIC lower earnings limit

£42,475 for the upper limit of the qualifying earnings band

this is also the NIC upper earnings limit

It must be stressed that technically, these are just draft regulations and are subject to affirmation from both Houses of Parliament, although we do not expect them to change.

The thresholds must be reviewed ahead of every tax year, although this does not necessarily mean that they will be increased or stay in line with tax/NIC thresholds.

Wingate Benefits Solutions are here to assist you in planning for the new reforms. Should you wish to discuss the above in more detail or any other aspect of your pension scheme please do not hesitate to contact your usual Wingate Benefit Solutions adviser or call us on 0844 406 0027.

Tax and legislation are liable to change. This information is based on WBS’s current understanding of UK law and HM Revenue & Customs practice and legislation we believe may apply in the future. No guarantees are given regarding the effectiveness of any arrangements entered into on the basis of the information contained herewith. It is recommended that professional advice is sought prior to entering into any financial arrangement.

Business Protection Bulletin – April 2012

Paul Weeks — Fri, 30 Mar 2012 08:36:30 +0000

Which of the following would damage your company the most?

One of your company vehicles is stolen/damaged
Someone steals your computers
Your photocopier breaks down
One of the directors becomes critically ill
The courier lets you down in delivering an important package
A window at the company premises is broken by vandals
Your top income producing member of staff dies

All businesses generally have or take out insurance to protect them against a damaged vehicle, theft, broken equipment, vandalism of even a courier delivering an important document/package late.

Not all businesses insure its key personnel or directors against death or critical illness which is a surprise as the cost of such cover does not need to be expensive and polices are very easy and simple to set up.

What can Wingate do to help?

Wingate can spend time with you to help assess who your key personnel are and provide you with a tailored report which will summarise the cost to insure these valuable members of staff. This review can be carried out completely free of charge so the only thing it will cost you is your time.

Our Service

Wingate will discuss your business circumstances with you to ensure we identify your specific business needs.

Based on this research we will provide you with a report confirming the options available and our recommendations.

We will implement any policies you wish to put into place, including managing the medical underwriting process with the insurers on your behalf.

Wingate Benefits Solutions is here to assist you with all aspects of business protection and employee benefits. Should you wish to discuss this or any other such matter please contact your Wingate Benefit Solutions adviser on 0844 406 0027

Tax and legislation are liable to change. This information is based on Wingate Benefits Solutions’ current understanding of UK law and HM Revenue & Customs practice and legislation. No guarantees are given regarding the effectiveness of any arrangements entered into on the basis of the information contained herewith. It is recommended that professional advice is sought prior to entering into any financial arrangement.

Auto Enrolment Earnings Threshold & Qualfying Earnings Figures Confirmed

Paul Weeks — Tue, 27 Mar 2012 10:56:02 +0000

The auto-enrolment earnings threshold figure and the lower and upper limits for the qualifying earnings band have been confirmed by the DWP.

The Auto Enrolment earnings trigger will be £8,105 with a lower limit for qualifying earnings of £5,564 and an upper limit of £42,475.

The earnings threshold is the same as the PAYE tax threshold whilst the lower and higher qualifying earnings limit are those used for National Insurance.

The fact that these figures have been aligned with the PAYE tax threshold and NI figures is good news on one hand because it keeps simple however, the higher qualifying earnings figures is greater than originally suggested meaning a potential increase in cost for Employers intending to use the qualifying earnings contribution basis.

What has not been clarified is how these figures will change in the future, for example when the NI upper limit is due to reduce to £41,450 in 2013/14 as announced in last week’s budget.

For most employers, whose staging dates are post April 2013 the actual contribution liability is still unknown although consideration should be being given to the potential contribution options.

For further information on the Workplace Pension Reforms and/or help with contribution modelling please contact us at 0844 406 0027 or at info@wingatebs.com .

Group Risk Bulletin – March 2012 – Long term absence from work

Paul Weeks — Mon, 05 Mar 2012 17:27:08 +0000

Figures published by the Health and Safety Executive (HSE) in November of last year claim that an estimated 1.2 million people said they were suffering from an illness caused or made worse by their work.[1] Market research has also identified that ‘Stress’ has become the most common cause of long-term sickness for both manual and non-manual employees’.[2]

Many businesses offer employees some protection on their income in the event of long term absence from work due to illness or injury. This is normally accomplished through a Group Income Protection insurance scheme; however, not all businesses take advantage of the additional benefits that are available with these types of plans. These include Early Intervention support, Rehabilitation Services or Employee Assistance Programmes (EAP).

What are Early Intervention and Rehabilitation Services?

The earlier an absent employee is able to access medical treatment and/or rehabilitation support the earlier they are likely to be able to return to work. These services help achieve this as the insurer offers absent employees access to medical professionals and rehabilitation consultants who specialise in their medical condition.

The insurer may also consider paying for private tests or medical treatment if they believe this will achieve an earlier return to work.

What is an Employee Assistance Programme?

An Employee Assistance Programme offers help 24/7 for insured employees to support them through the challenges of daily life. As well as providing benefits such as counselling, debt management advice and in some cases retail discounts, there are also features that can be used by the employer, for example, access to HR and legal advice and absence tracking software.

Wingate would be happy to review your existing Group Income Protection arrangements or provide you with costs and further information on implementing such a scheme.

Our Service

Wingate will discuss your business circumstances with you to ensure we identify your specific business needs.
Based on this research we will provide you with a report confirming the options available and our recommendations without cost or obligation.
If you wish to make changes to your benefits, we will implement these adjustments on your behalf.

Wingate Benefits Solutions is here to assist you with all aspects of Group Risk Benefits. Should you wish to discuss this or any other such matter please contact your Wingate Benefit Solutions adviser on 0844 406 0027.

March 2012

[1] Source HSE Statistics for 2010/11

[2] Source CIPD Survey October 2011/CIPD Absence Management survey 2010

Workplace Pension Reform Update – February 2012

Paul Weeks — Mon, 13 Feb 2012 13:30:26 +0000

We have recently met with the National Employment Savings Trust (NEST) who are a new pension provider offering a simple and low-cost pension scheme for employers of any size.

NEST has been established to help employers meet the new workplace pension responsibilities which begin to come in to force for the largest employers in October 2012.

We have assessed NEST’s ability to deliver a ‘no frills’ corporate pension solution for employers and are able to confirm they have been added to our panel of providers who will be considered for current and prospective corporate clients.

Are Payroll and HR Providers Prepared?

Although most employers are now getting to grips with what their duties will be in light of the upcoming Workplace Pension Reforms, one thing that is not so clear is how payroll and HR providers are amending their systems to cope with the revised legislation.

Many businesses who rely on payroll and HR providers will understandably assume their existing provider will have the required systems in place to cope with things such as earnings triggers and eligibility criteria.

The Pensions Regulator (TPR) has recently dismissed claims that payroll providers are dragging their feet in the development of suitable systems to cope with auto-enrolment and are confident that providers are moving ahead with their products. TPR has written to all payroll providers encouraging them to communicate with their employers as to where they are with regards to their offerings. They are hoping that when the final regulations are in place the providers will then be certain about what they need to do.

What are our experiences?

We have recently spoken with NorthgateArinso who are the UK’s leading HR, Payroll and Reward Solutions provider. They have confirmed they have already built an ‘auto enrolment service’ for their larger clients and that they are committed to delivering a similar service to their SME clients. Encouragingly, they do not envisage that an additional cost will be levied to their clients for this updated service due to the fact that the enforced changes to their software are legislative. SAGE have also confirmed to us that their auto enrolment software has just been signed off and they intend rolling this out as a free update. It will be interesting to understand the intentions of HR and Payroll providers……..

Business Protection Bulletin – January 2012

Paul Weeks — Thu, 12 Jan 2012 18:25:44 +0000

When did you last review your existing Shareholder Protection, Key Person and Loan Protection Policies?

Over recent months, we have seen a rise in the number of enquiries we have received form both new and existing clients regarding their Shareholder, Key Person and Loan Protection Policies. The main reason for this increase in activity seems to be that businesses are looking to:

Ensure their existing level of cover is sufficient
Ensure the premiums being paid are competitive
Further understand the tax position of both the premiums and proceeds

What have our findings been?

Generally, our findings have shown that either:

The level of cover in place is inconsistent to the needs of the business, as the cover has not been reviewed for some time OR
Premium savings can be achieved for directly comparable cover

What can Wingate do to help?

By allowing us to review your existing arrangements, Wingate can provide you with a tailored report which will summarise your existing arrangements and how these compare to your requirements. This review will be carried out completely free of charge so the only thing it will cost you is your time.

Our Service

Wingate will discuss your business circumstances with you to ensure we identify your specific business needs.
Based on this research we will provide you with a report confirming the options available and our recommendations.
We will implement any policies you wish to put into place, including managing the underwriting process with the insurers on your behalf.

Success in Employee Benefits – 2011

alistair — Thu, 22 Dec 2011 11:10:10 +0000

This article is available as a high-quality (6.7MB) PDF here, or a lower-quality (1.2MB) PDF here.

Record-breaking achievements

2011 was a record-breaking year for both sides of Wingate’s business. We achieved a place in six professional awards, attained the highly acclaimed ‘Silver’ standard in Investors in People and maintained our ISO9001 accreditation whilst growing the business over the past twelve months.

One of the first Chartered firms to receive the accolade in 2008, Wingate Financial Planning retained its Chartered Financial Planner status into a fourth year. The firm also picked up the prestigious Gold Standard for Independent Financial Advice in November from the House of Lords. One of only nine firms nationally to be presented with the award, the judges said of Wingate:

This was a very strong submission with an excellent client focus. A great deal of client care is evidenced and commitment to delivering value for money. Judges were impressed with qualifications and liked their service policy. The client journey is well documented and detailed analysis provided.

Wingate Financial Planning attend Houses of Parliament for Gold Standard Award

This exceptional peer recognition places Wingate as one of the most awarded firms nationally in 2011, and a leader in Employee Benefit Consultancy and Private Client Financial Planning.

Winning awards gives further credibility and validation to our core aim; for the Wingate companies to be at the forefront of professional Financial Services companies. We extend our thanks to our clients and our dedicated and professional team for supporting us in winning these accolades

Ben Clarke, Managing Director

An innovative approach to employer governance of pensions

At the start of 2011 we launched a market-leading service for employers to support them in delivering best practice in the management and due diligence of their company pension schemes. This service focuses on six core principles, and not only protects employers but also supports them in providing a valuable, visible and well maintained pension benefit for their employees.

We have provided consultancy to firms who are wishing to demonstrate commitment to their employees by maintaining a competitive edge on their benefit proposition. This has included the introduction of more choice for employees on their benefits and independent recognition of the value the companies pension scheme provides with the Pension Quality Mark.

Helping employers manage through difficult economic conditions

We do however recognise many employers are seeking to reduce costs and Wingate have provided extensive consultancy on how benefits can be retained, at lower cost, whilst improving the value these provide employees. This has been achieved by adopting an innovative approach and utilising our extensive experience across many industry sectors, allowing us to offer cost effective solutions which we know are positively received by employees.

Everything we do is focused on achieving the best possible outcome for the employer given their objectives and corporate goals. We embrace the challenge of meeting cost containment objectives with the same vigour and enthusiasm as we demonstrate when we are helping organisations reshape and enhance their benefits. This commitment is supported by our transparent fee based remuneration structure which ensures there is no conflict between us negotiating the best possible outcome for our clients and the level of our income.

Paul Weeks, Corporate Director

Press coverage

Part of Wingate's team as featured in New Model Adviser

Wingate’s opinion is often valued by the press, both local, national and within our profession. Wingate received more mentions in 2011 than ever before, and was asked to be the “Cover Star” of the New Model Adviser magazine in November. This publication, which is aimed at our profession, seeks to showcase the pinnacle of Independent Financial Advisers and Chartered Financial Planners.

Supporting executives and business owners

In 2011, Wingate had great success with winning new high-value clients who appreciate our unbiased, simplified approach to Financial Planning. Increasingly, frustrated by the banks, who are motivated by the manafacture and sale of their own products our client focused service has allowed us to compete and attract clients who may have been attracted to services from the Private Banks, in particular.

On more than one occassion this year Wingate has been described as “client-centric”, and for us there is no greater compliment. We take great pride in the fact that our clients, and their families, are the motivator for all we do.

Alistair Cunningham, Financial Planning Director

Final words and looking ahead to 2012

Ben Clarke, Managing Director of Wingate Financial Planning and Wingate Benefit Solutions

We have great plans to expand on our successes of 2011 in 2012, and look forward to sharing them with you.

We’d like to thank all our clients, whether corporate or private for supporting us throughout 2011, and in many cases for many years. We appreciate the opportunity to continue to support your business and personal affairs in the future, and wish you a healthy and prosperous 2012.

Ben Clarke, Managing Director

Agency Worker Regulations

Paul Weeks — Mon, 31 Oct 2011 15:30:31 +0000

Agency workers are used as a valuable resource for many employers to fill certain temporary positions without having to go through a sometimes cumbersome recruitment process.

The employer can take relief in that fact that an individuals credentials have been checked out by the recruitment agency and that the individual’s services can be dispensed of easily when they are no longer needed.

The lack of protection afforded to agency workers has been controversial, and parliament has sought to address the unsatisfactory position in which these workers have found themselves.

What has changed?

With effect from 1^st October 2011, the Agency Worker Regulations came into force. The Regulations give agency workers the right to the same basic employment and working conditions as if they had been recruited directly by the company

An agency worker is someone who provides work or services to an organisation, but is contracted via an agency rather than the organisation itself.

Over recent years, agency workers have been able to benefit from the national minimum wage, paid holiday and the right not to work more than 48 hours a week on average.

The Agency Workers Regulations are a further significant step in enhancing agency workers’ rights.

This means that after 12 weeks, basic working and employment conditions for temporary agency workers are no less favourable than if they had been recruited direct by the hirer.

Do these changes affect any employee benefits that a company may offer?

It is understood that Group Private Medical Schemes, Health Cash Plans, Group Income Protection Schemes and Group Critical Illness Schemes are not affected by these regulations but the situation regarding Group Life Assurance is not so clear.

At present, the government has not clarified whether Group Life Assurance has to be provided where other employees receive this benefit but it is anticipated that if an employer uses a minimum service period for eligibility to the life assurance scheme, then this would apply to agency workers as well as contracted employees.

The one thing that is absolutely clear is that Legal Advice combined with advice from Wingate Benefit Solutions should be sought in order to clarify the position of a business so that it is aware of its obligations.

We can recommend a variety of Employment Law specialists suited to match the needs of a business.

Our Service

Wingate will discuss your business circumstances with you to ensure we identify your specific business needs.
Based on this research we will provide you with a report confirming the options available and our recommendations without cost or obligation.

If you wish to make changes to your benefits, we will implement these adjustments on your behalf.

November 2011

Workplace Pension Reforms Bulletin – September 2011

Paul Weeks — Wed, 07 Sep 2011 17:02:18 +0000

With Auto enrolment looming and only 13 months away, the first companies will shortly be receiving correspondence from The Pensions Regulator setting out their requirements at both an administration and financial level.

Employers are not the only people that will be affected by the reforms and in an online survey carried out between 20^th – 24^th June 2011 by YouGov on behalf of the Chartered Institute of Personnel and Development (CIPD), 2013 employees provided answers on the upcoming reforms, the answers of which make very interesting reading.

The Results

When asked if they were aware of the upcoming legislation, 46% of those working in the private sector and 42% of those employed in the voluntary sector said they were.

Education, Education, Education

The employee feedback suggests that due to the current below-inflationary pay rises, employees are worried about maintaining their existing living standards and their concerns include:-

Can I afford to increase my contributions or start to make contributions into a pension plan when auto enrolment comes in?
Can I afford not to increase my contributions or start to make contributions into a pension plan when auto enrolment comes in?
What will I get from the state if I do nothing?

If the economy does start to grow at a fast pace both employees and employers alike will be in a better position to absorb the costs associated with Workplace Pensions Reforms. However, if as expected, the recovery is more gradual there will need to be greater emphasis on educating employees on why saving for retirement makes sense, especially with proposals to move away from means-tested state pension benefits.

What next?

With auto enrolment heading towards all businesses at an alarming pace, it is encouraging that employees are becoming increasingly aware of the reforms and how the reforms will affect them. The numbers also confirm there is a lot more work that needs to be done in educating all affected parties on the impact of the reforms and this is where Wingate Benefit Solutions can help.

Wingate Benefits Solutions are here to assist you, your business and your staff in planning and preparing for the new reforms. Should you wish to discuss the above in more detail or any other aspect of your business please do not hesitate to contact Wingate Benefit Solutions on 0844 406 0027.

NEST For Senior Individuals: Take Care

Paul Weeks — Wed, 31 Aug 2011 10:10:45 +0000

With the launch of the Fixed Protection form APSS227, Senior Individuals with benefits at, or close to the Lifetime Allowance should take extreme care with any interference with the new proposed Workplace Pension scheme – the National Employment Savings Trust. Due to the compulsory nature of these schemes, many senior executives could be forced into a pension that causes them to break the new Fixed Protection rules.

The HMRC guidance at the bottom of the fixed protection form APSS227 says:

From 2012 if your employer is subject to the automatic enrolment duty they will have to automatically enrol you into a qualifying workplace pension scheme. This could be an occupational pension scheme, a workplace personal pension scheme or the National Employment Savings Trust (NEST). If you are claiming fixed protection you must opt out of such pension arrangements within one month or you will build up benefits and your fixed protection will be lost

Wingate are able to offer advice and assistance in understanding both Fixed Protection, NEST and the impact on Executive Pension schemes. We can bear the cost of our initial discussion and we aim to give you a fee indication after this first consultation. You can contact us using this form or calling 0844 406 0027.