With origins as a family-owned business, IEC has grown and developed into a privately run enterprise, but have retained the paternal approach to Employee Benefits, considered a
big part of their recruitment and retention tool.
We were approached by IEC at the beginning of 2020 and were asked to review IEC’s current Group Life Assurance benefit which had been insured by the same insurer since 2011. IEC were looking for commentary around:
• Compliance with Legislation
• The alignment of the benefits with the employer’s contractual commitments.
• Potential cost reduction and control measures
• Employee Engagement
Outcome of our Review
Following our review, the following steps were recommended, and with the agreement of IEC, made to the existing Group Life Assurance benefit:
• That the business consider moving the Directors into an Excepted Group Life Assurance scheme, therefore protecting them from any potential pension related Lifetime Allowance charges.
• That the cease age of the scheme was amended to State Pension Age or 65 (whichever is higher) to protect the business from any potential age discrimination issues in the future.
• That the existing commission be removed from the existing insurance policy which would lead to an immediate premium reduction of 20%.
• That a full market review be undertaken on behalf of the business to test the competitiveness of the holding insurers’ scheme unit rate, annual premium, and ancillary services.
The results of our review and subsequent negotiations led to a reduction in the holding insurer’s renewal terms of 24%.
• That the business reminded the scheme members of the importance of keeping their death benefit nominations up to date to reflect their current wishes.
Having demonstrated our expertise and value, IEC appointed us to manage their Group Life Assurance scheme.
Following the success of this review the business asked us to undertake a review of their Workplace Pension to provide commentary around the same four areas as highlighted above.
Early indications are that our annual governance, ongoing employer support and member engagement services will significantly reduce IEC’s corporate risk, enhance the support provided to their HR team and increase the value of this benefit in the eyes of its highly valued employees.
How can we help
We can provide a free, no obligation review of any employer’s complete employee benefit offering.
Further details about our review service are detailed in our short 2 minute video which can be found here: