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The St. James’s Place Approach to the Corporate Market
WORKING IN PARTNERSHIP Ensuring Business Success
St. James’s Place Wealth Management• FTSE 250 company with over 80,000 wealth management
clients
• Funds under management of £20 bn
• Invested £3bn for clients in 2008
• 70% of new investments came from existing clients or
referrals from existing clients
• Financial Times/Investors Chronicle Best Wealth Manager
2008 and 2009
• Daily Telegraph – Wealth Manager of the Year 2007 & 2008
RetirementPlanning
Corporate
Protection
Exit Planning
Tax and Accountancy
TrusteeInvestment
InsuranceBroking
Wealth Management
Employee Benefits
GroupPensions
Challenges for your business
As well as the challenges you face in the day-to-day running of your business you now have to consider others including :
• Employee Benefits & Employment Law• Corporate Protection & Business Liability Assessment• Corporate Investment Strategies and Exit Planning
Some of the above may involve a service that is separate and distinct to those offered by St. James’s Place.
Looking after your people for the benefit of your business
• Employees – key to the success of the business
• Cost effective and tax efficient methods of recognising
employee contribution• Recruitment and retention of the best people
Employee Benefits
• Group Life Cover• Group Income Protection• Group Critical Illness • Group Private Medical• Group Pension Plans – Changing Pension Legislation
Registered Group Life Cover
Benefits for the employer:
• highly valued cover• flexible and cost effective benefit• treated as a business expense against tax• helps attract quality staff• reduce staff turnover by helping to retain key staff
Registered Group Life Cover
Benefits for the employee:
• security and peace of mind for dependants• lump sum paid quickly (usually calculated as a multiple of
salary)
• lump sum is not part of the total employee’s estate
• No cost to the employee and favourable tax treatment
Group Income Protection
Benefits for the employer- Helping to solve HR Issues: • Attracting and retaining staff• Keeping staff motivated• Employee health and wellbeing• Absence management• Controlling payroll costs• Managing pension plans
Group Income Protection
Benefits for the employee:
• An income continues while unable to work
• Helps to maintain lifestyle of the claimant and his/her dependants
• Return to work expertise and help available
• No P11D for the employee if benefits are paid through the employer
Group Critical Illness
Benefits for the employer:
• improves likelihood of employee returning to work
• mitigates the cost of ex-gratia payments
• enhances employee loyalty and retention
• helps minimise the pressure on the employer around how
they provide financial support for employees on long-term
sick leave
Group Critical Illness
Benefits for the employee:
• provides financial resources to pay for private medical
treatment and/ or physiotherapy to facilitate recovery
• compensation for time away from work
• provides a means of support for employee and dependants
during a critical time
Group Private Medical
Benefits for the employer:
• Reduce sickness absence costs and increase profits• Attract the best people with a top benefits package • Reduce staff turnover and retain key staff• An allowable business expense
Group Private Medical
Benefits for the employee:
• Prompt access to treatment • Patient choice• A wide choice of hospitals and specialists to suit employees
needs • A Benefit at the top of most employees’ ‘wish list’
How can companies keep employees?
• 46% of employees value their occupational pension more than any other benefits (excluding paid leave).*
• Benefits most valued by employees are holidays (93%) and pension arrangements (73%).**
• Two main reasons employers improve benefits are to boost recruitment (35%) and retention (35%).**
• Cost of recruitment is£4,000, while cost of attrition is £6125.†
• *Employee Benefits Research 2008• **Trends in Employee Benefits 2008, Hymans Robertson• †Chartered Institute of Personnel and Development 2009 (All employees)
An introduction to pensions reform
Set out in Pensions Act 2008
– Aim – more people saving more– New employer responsibilities
• All employers except single-person companies– Creation of a new personal accounts scheme
• Qualifying Workplace Pension Scheme• A trust-based occupational pension scheme (Defined
Contribution)• Will be regulated by the Pensions Regulator
Get to know
– Your duties– What makes a qualifying scheme?– What are qualifying earnings?– When do your duties start?– Decision Time?
Your duties in summary– Automatically enrol jobholders, aged between 22 and
State Pensions Age, into a qualifying pension scheme or personal accounts scheme
– Pay a minimum contribution of 3% of qualifying earnings if they don’t opt out
– Pay a minimum contribution of 3% of qualifying earnings for already active members of a qualifying scheme
– Jobholder, aged between 16 and 22 and over State Pension Age and under 75, arrange to be able to opt-in and pay minimum contributions of 3% of qualifying earnings if they don’t opt-out
What makes it a qualifying scheme?– A qualifying scheme is one where:
• it’s a registered occupational or a personal pension scheme (incl. stakeholder)
• the employer’s contribution is at least 3% of the jobholder’s qualifying earnings
• the total of the employer’s and jobholder’s contribution is 8% of the jobholder’s qualifying earnings
– An auto-enrolment scheme is a qualifying scheme where:
• Jobholders are auto-enrolled
• jobholders are re-enrolled every three years
• there are no member decisions (eg default investment fund)
What are qualifying earnings?– Earnings between £5,035 and £33,540 within a 12-month
pay period*– ‘Earnings’ for these purposes include:
• salary or wages • commission • bonuses • overtime payments• shift allowances • any statutory pay, ie sick pay, statutory maternity etc
– Most employers currently use % of basic pay with no lower band cut-off
• *These figures are based on 2006, and will be revised by the government in the future. It’s expected to increase for 2012.
When do your duties start? Staging and phasing
– Employer responsibilities to be staged• Over 18 months from October 2012?
– Contributions to be phased in• All start at 1% employer and 1% jobholder
contributions
Employer cont Jobholder cont*
Phase 1 1% 1%Phase 2 2% 3%
Phase 3 3% 5%J*Jobholders contributions includes tax relief
Decision time
Does your scheme qualify?• Does your scheme qualify?
• Which solution for which employees?
• How much do you want to contribute?
• How do you accommodate the additional cost?
• When to act?
Which solution for which employees?
St. James’s Place Wealth Management
• For further information on the content of this presentation or any of our other services please contact:
• David Cook • [email protected]• Office: 08451 303084• Mobile: 07774843651