20 May 13

Tax Breaks for Medical Interventions…

Delegates at our Jelf Employment Seminar on Friday will recall that amongst my topics for the day was the subject of tax-break for healthcare treatments, as suggested in George Osborne’s budget statement recently.

And coincidentally, that same day the following article was issued by Corporate Adviser magazine.  I’m quoted in here alongside some others in the industry, and you will sense a theme of uncertainty about exactly what this change suggests.  Right at the end of the article the statistics from our February Jelf Employment Seminar on this subject are also shown, which represent an employer’s view of this important topic.

The article can be viewed via the following link:

 http://www.moneymarketing.co.uk/channels/corporate-adviser/healthcare/a-wall-coming-down/1071294.article

I will certainly keep followers posted on progress on this one, as this is potentially a major step forward for tackling sickness absence in the UK.

Best regards

Steve

Posted by at 8:22 AM in Articles and technical, Group risk, Healthcare, Jelf in the news, Steve Herbert | Permalink | Leave a comment
10 May 13

Pensions: That was the week that was…

It’s been a while since I was able to put a conversational post on here, as we are in peak seminar season now, and I’m just not getting the ‘desk time’ needed.

But to wrap up the week, I thought I should take a couple of minutes to update you on the big pensions news stories (from this blog’s perspective) of the week, ‘cos there are quite a few threads now seemingly approaching their final phase.

This week we have progressed on all of the following:

  • The Flat Rate State Pension 

A long time in the making, it looks like this one has finally moved forward.  Many followers will be aware that this was included in the Queen’s speech this week, so it’s clearly a high priority for the Coalition Government to push through before all the political parties retrench for the 2015 election campaign.

  • Small Pension Pots and Automatic Transfers

A topic we have covered here before, and now included in the amended Pensions Bill, so now progressing.  I suspect that this one may not have quite such an easy glide-path to legislation as the Flat Rate State Pension, and it will be interesting to see what the final legislated rules look like.  

It is however evident that there is a recognition that Auto-Enrolment will create many more micro pension funds (as employees move from job to job), and that something needs to be done to ensure that such funds are not lost to the employee, and protected from any possible erosion by charges (something which is much less prevalent in today’s pension world than a decade or more ago it should be noted).

  • The removal of Short-Service pension refunds

Another long running topic, and also included in The Pensions Bill now, so again progress towards legislation here. 

  • Consultancy Charges

Many followers of this blog will be aware that the Retail Distribution Review took hold on the 1st January this year.  This effectively removed the recently favoured ‘factored’ commission structure for group pension planning, which many employers had relied on to pay for their pension consultancy services.

One proposed solution to this was the concept of ‘consultancy’ charging.  Under this method, funds would be directly taken from the employee’s pension fund to meet the consultancy costs.  

To be honest, this idea has never got off the launch pad, and there has been a question mark hanging over consultancy charging for many months now.  Any ambiguity about this has now seemingly been removed, with The Minister for Pensions today announcing the Government’s intention to ban consultancy charging in automatic enrolment schemes.  We will presumably have to wait a few months to see if there is any possible way that this can still be used (for high end, non-auto enrolment schemes for instance), but for most employers it appears this option has now been completely removed from the landscape.

This does however again raise a couple of key questions.  Some schemes have already been established within the industry on the consultancy charging basis, and quite possibly for Auto-Enrolment schemes.  Will this legislation apply retrospectively?  If so how could such a charging structure be unravelled after the event?  These are interesting questions that may pose significant challenges to both employers and the industry in such cases.

 

So a long week in pensions, but at least we are moving towards the end game for some of the big questions of the moment.

Best regards

Steve

 

 

 

Posted by at 3:57 PM in Articles and technical, Pensions, Steve Herbert | Permalink | Leave a comment
7 May 13

Bristol Employment Seminar: Bookings now being taken…

We are delighted to announce the latest instalment of our informative, challenging, and entertaining Jelf Employment Seminars in the SW of England.  Yet again we will be fielding our range of expert educators, speaking on important topics of true relevance to employers.   The full agenda for this event includes:  

  • Bullying & Harassment at Work:  This interactive session is designed to promote understanding of the issues, and provide delegates with the confidence to tackle inappropriate behaviour in the workplace.
  • Employment Law:  The learned Mr Randles will be guiding our delegates through the jungle of Employment Law, in his usual relaxed and humorous fashion.
  • Employee Benefits:  A mixed bag of old and new topics, all of which will be important to employers, employees, and employee benefit offerings.

Our superb venue is the Clifton Pavilion at Bristol Zoo.  The Clifton Pavilion overlooks the zoo gardens, and all delegates will have free access to the zoo (usual cost £15.50) after the event.  Onsite parking is available, and the museum is accessible via public transport links. 

Seminar details:

  • Date:  Friday 28th June 2013
  • Timings:  09:30 to 12:20
  • Location:  Bristol Zoo Gardens, Clifton Pavilion, College Road, Bristol BS8 3HH
  • Suitable for:  Senior Human Resources and Finance Professionals
  • CPD:  The seminar will qualify for 2 hours CPD
  • Cost:  FREE! (includes refreshments and access to the zoo post event)                    

Full Agenda:

09:30  Registration, coffee and networking

10:00  Welcome

10:05  Bullying & Harassment at Work:  “Myths and Realities”

Bullying and harassment continues to be a major challenge for organisations of all sizes in the UK.  This interactive session is designed to promote understanding of the issues, and provide delegates with the confidence to tackle inappropriate behaviour in the workplace.  Our speaker on this topic is Jean Kelly, who has 20 years relevant experience as a trainer, consultant, coach, and author.  Speaker:  Jean Kelly, Jean Kelly Consultancy Ltd

10:50  Break/ Refreshments/ Networking 

11.10  Employment Law:  “Evolution or Revolution?”

The Employment Law jungle is difficult to navigate through, but we are fortunate to have secured an expert guide for our journey.  Tim will ask whether the  promised evolution of Government reforms will prove successful, consider the new legislation (including the various ACAS Codes), and offer an overview of the brave new employment landscape.  Tim will also provide a review of cases that have caught his eye and share some of his legal know-how.  Speaker:  Tim Randles, Associate, Penningtons Solicitors LLP 

11:45  Employee Benefits:  “Taming the Beast”

Steve will look at a mixed bag of subjects, all of which are potentially significant for both employers, employees and employee benefits.  Topics covered will include employee engagement, the Government’s response to The Sickness Absence Review, and recent budget changes to both healthcare treatments and childcare costs.  In addition, Steve will seek to dispel some Pensions Auto-Enrolment myths.  Speaker:  Steve Herbert, Head of Benefits Strategy, Jelf Employee Benefits

12:15  Closing comments

12:20  Drinks & Networking/ Free access to Bristol Zoo

Given our speakers, agenda, and superb venue, not to mention the hugely positive feedback from all our recent events, demand is likely to be extremely high.  Places will be allocated on a strictly first come, first served, basis.  Early reservation is strongly recommended.  

How do I book a place?

If you (and/or an appropriate colleague) would like to attend, please email:

steve.herbert@jelfgroup.com

with the following details for each delegate…

  • Full Name
  • Job Title
  • Company Name
  • Email Address
  • Phone Number (preferably direct dial)
  • Please add ‘Bristol Seminar’ to the subject line of your email

All bookings are subject to our usual terms and conditions that can be viewed here: http://www.jelfgroup.com/blog/2011/03/revised-seminar-and-workshop-acceptance-terms/

We do hope that you can join us for this event.

Best regards

Steve

 

Posted by at 8:23 AM in Group risk, Healthcare, Pensions, Seminars and events, Steve Herbert | Permalink | Leave a comment
30 April 13

Manchester Employee Benefits Workshops: Bookings now being taken…

As promised at our recent Manchester Employment Seminar, I am running a free workshop on current Employee Benefit issues (including cost savings).

Below are full details on the workshop, including details of how to book a place.  As ever, early booking is advised.

Workshop content:

  • The impact of the austerity years on Employee Benefits
  • Employee engagement and benefits
  • Tax efficient benefits
  • Salary Sacrifice Benefits:  Pensions, Childcare Vouchers, Bikes for Work etc
  • Isolating cost savings
  • Duplication of cover (and how to avoid this)
  • Group Life Assurance
  • Group Income Protection
  • Group Medical Cover
  • Cash Benefit Plans
  • Employee Assistance Plans
  • DSE Regulations
  • Return on Investment
  • Benefit Communications
  • Q&A Session
  • Other topical issues as relevant

Date and start time: 

  • Thursday 23rd May: 14:00

Venue: 

  • People’s History Museum, Left Bank, Spinningfields, Manchester M3 3ER

The museum is close to public transport links, and NCP parking (at a discounted rate for delegates).   

Delegates will (of course) have free access to the museum after the workshop concludes.   The Museum tells the story of the British road to democracy, from the famous Peterloo Massacre of 1819, to the present day. 

Workshop Duration:  Approx 75 minutes

How do I book a place?

If you (and/or an appropriate colleague) would like to attend, please email me:

steve.herbert@jelfgroup.com

with the following details for each delegate…

  • Full Name
  • Job Title
  • Company Name
  • Email Address
  • Phone Number (preferably direct dial)
  • Please add ‘Manchester Benefits Workshop’ to the subject line of your email

All bookings are subject to our usual terms and conditions that can be viewed here: http://www.jelfgroup.com/blog/2011/03/revised-seminar-and-workshop-acceptance-terms/

Best regards

Steve

Posted by at 1:43 PM in Group risk, Healthcare, Seminars and events, Steve Herbert | Permalink | Leave a comment
30 April 13

Manchester Pensions Workshops: Bookings now being taken…

As promised at our Manchester Employment Seminar last week, I am running some (free to attend) workshops. 

Below are full details of the Pensions Workshops (which includes a detailed look at Auto-Enrolment legislation), including details of how to book a place.

These workshops are very popular, so early booking is advised. 

The content of the Pensions workshop includes:

  • Latest research and updates
  • Staging dates and options
  • Categorising each employee’s ‘Worker’ status
  • Tactical use of waiting / postponment periods 
  • Employer Duties under the new regulations
  • Earnings thresholds
  • Which scheme (or schemes) should an employer use?
  • Certified pension scheme criteria
  • NEST/  NOW: Pensions/  The People’s Pension
  • NEST restrictions and the DWP consultation
  • Contribution levels and phasing
  • The Retail Distribution Review:  what this means for employers
  • Abolition of the Default Retirement Age
  • Increases in the State Pension Age 
  • Salary Sacrifice
  • What now for Workplace Savings?
  • Q&A session
  • Other topical issues as relevant

Date and start time: 

  • Thursday 23rd May: 10:30

Venue: 

  • People’s History Museum, Left Bank, Spinningfields, Manchester M3 3ER

The museum is close to public transport links, and NCP parking (at a discounted rate for delegates).   

Delegates will (of course) have free access to the museum after the workshop concludes.   The Museum tells the story of the British road to democracy, from the famous Peterloo Massacre of 1819, to the present day. 

Workshop Duration:  Approx 120 minutes

How do I book a place?

If you (and/or an appropriate colleague) would like to attend, please email me:

steve.herbert@jelfgroup.com

with the following details for each delegate…

  • Full Name
  • Job Title
  • Company Name
  • Email Address
  • Phone Number (preferably direct dial)
  • Please add ‘Manchester Pensions Workshop’ to the subject line of your email

All bookings are subject to our usual terms and conditions that can be viewed here: http://www.jelfgroup.com/blog/2011/03/revised-seminar-and-workshop-acceptance-terms/

Best regards

Steve

Posted by at 1:43 PM in Pensions, Seminars and events, Steve Herbert | Permalink | Leave a comment
30 April 13

Seminar: Overseas Employees & The Employer’s Duty of Care

Do you have employees based overseas?  Are you aware of your legal and moral duties to those individuals, and do you have policies and procedures in place to best meet those responsibilities?

To help you answer and respond to the above questions, Jelf have established a panel of subject experts for this special event.  The full agenda includes a look at International Employment Law, Health and Wellbeing for employees based outside of the UK, and the impact of global change of Medical Benefits.  We have an expert panel of speakers for this event, including LBC’s Radio GP Dr Sneh Khemka.  The full agenda is detailed later in this post.

Our venue for this event is the newly refurbished Terrace Gallery at The Museum of London.  The museum charts the history of the capital from Roman times to the present day, with a series of interesting and interactive galleries and displays.  Delegates will have free access to the museum, together with tickets to the new “Michael Caine 80th Anniversary” exhibition which opened in March.  The exhibition features pictures, art, audio and film footage from Sir Michael’s best loved movies including The Italian Job, Alfie, Get Carter and Educating Rita. 

Seminar details

  • Date:  Thursday 6th June 2013
  • Timing:  09:45 to 12:30
  • Location:  The Museum of London, 150 London Wall, EC2Y 5HN
  • Suitable for:  Human Resources & Finance Professionals with overseas employees
  • CPD:  The seminar will qualify for 2 hours CPD
  • Delegate cost:  FREE!

Morning refreshments, lunch, and access to both museum galleries and The Michael Caine 80th Anniversary exhibition will be provided free of charge to delegates.

Places for this important event are limited, and will be allocated on a first come, first served basis.  Early reservation is strongly recommended.  Details of how to book your place are shown at the foot of this announcement.

Agenda

09:45  Registration, coffee and networking

10:15  Welcome and opening comments

10:20  International Medical Trends:   ’The Medical Butterfly Effect’    

We are delighted to welcome Dr Sneh Khemka, who is the ‘radio doctor’ from LBC’s weekly health show, as well as the current Director of Healthcare Development at BUPA international.

In this presentation Sneh will provide an overview of the medical trends around the world, and the impact this is having on the global health insurance industry, employers, and employees.

Speaker:  Dr Sneh Khemka ,Director of Healthcare Development, BUPA International

10:50  Break, refreshments and networking

11:05  Employment Law:   ‘International Law and Overseas Employees’

International Employment Law presents it’s own challenges to organisations with employees based overseas.  Focusing on international legal and compliance obligations, Simon will seek to guide delegates through these murky waters with a particular focus on current regulations and local territory requirements.

A specialist at the international law firm Everys, Simon provides an expert and unbiased view of risk management for clients.  A necessary session for delegates.

Speaker:  Simon Isgar, Partner, Everys Legal Consultancy

11:35  International Health:   ‘Health Matters…A Global Perspective’

With a rapidly changing world, it’s important that organisations ensure the continued health and wellbeing of their overseas employees.  With the aid of case studies, Clive will look at why health matters, how to survive and thrive in competitive times, and provide some useful tips for the audience’s own health and wellbeing.

Clive is an established an informative seminar speaker on this topic, and is sure to provide a fitting finale to the morning.

Speaker:  Clive Pinder, Founding Partner, HealthyWorlds

12.05  Buffett Lunch and Networking

12:30  Free access to museum galleries and “Michael Caine” exhibition for delegates.

 

How do I book a place?

If you (and/or an appropriate colleague) would like to attend, please email:

steve.herbert@jelfgroup.com

with the following details for each delegate…

  • Full Name
  • Job Title
  • Company Name
  • Email Address
  • Phone Number (preferably direct dial)
  • Please add ‘Overseas Employees Seminar’ to the subject line of your email

All bookings are subject to our usual terms and conditions that can be viewed here: http://www.jelfgroup.com/blog/2011/03/revised-seminar-and-workshop-acceptance-terms/

We do hope that you can join us for this event.

 

Posted by at 1:30 PM in International healthcare, Jelf in the news, Seminars and events | Permalink | Leave a comment
25 April 13

Automatic small pension pots transfer…

Many followers of this blog will be aware that the above conversation moved on a little further earlier this week.  As you will see from the links below, the proposal appears to be to automatically transfer small deferred money purchase pension pots (those worth less than £10,000) to avoid employees ending up with many small pension funds scattered around previous employer’s schemes.

http://goo.gl/geJIH

http://goo.gl/KMBoI

This proposal, and one to accelerate the removal of short-service refunds, are intended to be included in the next Pensions Bill.

So how quickly can we expect these changes to take effect?

The above articles give target dates of 2014 or 2015, but the experience of the last few years suggests that this may be optimistic.  I will watch this one carefully, and let you have my findings (and some further thoughts on the changes) once more detail is known.

Best regards

Steve

 

Posted by at 4:07 AM in Articles and technical, Pensions, Steve Herbert | Permalink | Leave a comment
18 April 13

Record low growth in average wages…

In between the blanket coverage of Lady T’s funeral yesterday, I did hear one snippet of relevance to both this blog and our audience.  The latest figures from the Office for National Statistics (ONS) show the lowest increase in average weekly wages since their records began in 2001.

On average, wages increased by just 1% excluding bonus payments, or 0.8% including bonus.  For full details of their findings please see the following link:

http://goo.gl/03y0p

This is relevant, as some our followers and/or delegates at our major London events will recall that I was making a case for benefits over extremely low wage increases at our October Healthcare event only last year (and, coincidentally, I was delivering a similar speech only last night at a CIPD event in Kent).

Put simply, I am suggesting that extremely low levels of pay awards can be more damaging than productive.  A 1% pay rise, once tax and national insurance have been deducted, may only deliver a few pounds extra to an average wage employee at the end of the month.  Such an increase may actually be greeted with derision rather than gratitude.  This, in turn, can seriously impact on employee engagement and productivity.

And not only does the employee end up with significantly less than 1%, the employer also has to fund more than this figure owing to the impact of employer’s national insurance.

So there are potentially times when a small pay rise can do more harm than good.  And I was suggesting that in some cases (by no means all) offering some additional benefits to employees rather than nominal pay increases may be better received and more cost effective for all parties.

I must admit that I was gratified by the audience response in October.  I posed the following question to our audience at that time:

“Would you consider providing extra employee benefits instead of a very small pay rise for employees?”

The responses were as follows:

  • Yes 45.01%
  • No 13.00%
  • In some circumstances 29%
  • Not sure 13%

 (total responses 169)

And with yesterday’s announcement from the ONS, perhaps now is the time for some employers to explore such an approach?

It should however be remembered that the ONS figures are based on the last 12 months, rather than predicting future awards.

Delegates at our February event were somewhat more positive about the employment outlook for 2013, with 23% predicting average pay increases of more than 2%, and 43% predicting increases of up to 2%.

As ever, different industries and employers will face different challenges, but it’s always useful to be reminded that sometimes a less direct approach to pay and reward may be more beneficial for all parties.

Best regards

Steve

 

Posted by at 11:44 AM in Articles and technical, Group risk, Healthcare, Pensions, Seminars and events, Steve Herbert | Permalink | Leave a comment
17 April 13

Fit for Work?

Followers of this blog will already be aware of The Sickness Absence Review.  The report made various recommendations as to how to reduce long-term sickness absence in the UK, and some of those proposals are now in train with a target date for launch in 2014.

It was with this in mind that I recently listened to the In Business broadcast on BBC Radio 4 (11th April for those interested) on this very subject.

Much of this program was focused on the existing pilot schemes around the UK, which have been generally labelled the ‘Fit for Work’ schemes.

There is no doubting that these schemes have accelerated the return to work for many employees.  Indeed the In Business program suggested that around 50% of 1,000 cases referred to the Leicestershire Fit for Work scheme had returned to work earlier than would otherwise be the case.  Impressive figures most would agree.

But there is a key difference between the existing Fit for Work pilots, and the replacement service due to take shape in 2014. 

The pilot schemes often directly financed any medical interventions needed to speed the return to work process.  The replacement service is unlikely to do this, and instead will provide only ‘signposts’ to medical interventions.  Or to put it another way, it’s likely that the employer, employee, or NHS will have to pick up the cost of treatment.

Let’s take the last of that list first.  If the treatment is immediately available on the NHS then all well and good.  Yet much of the treatment available on the NHS is subject to the dreaded waiting lists.  Evidence strongly suggests that the longer someone is out of the workplace, the less likely they will return to it, so waiting on the NHS for the treatments may be unwise if the aim is to get an employee back to work quickly.

Which takes us to the private funding option.  Employees will often not be in a financial position to fund the treatments themselves.  It should be remembered that those referred to the service may only be receiving benefits income, so finding extra money for the treatments is going to be difficult, or impossible.

Which leaves us with the employer funding the treatment.  The Government have recognised that this is a big ask (particularly in the current economic climate), and have therefore introduced a tax-break to assist employers providing this funding.  The recent budget statement included the following:

“The Government will also introduce a targeted tax relief so that amounts up to a cap of £500 paid by employers on health-related interventions recommended by the service are not treated as a taxable benefit in kind. The Government will consult on implementation later in 2013.”

Which is certainly a significant step in the right direction.  Yet £500 is not a lot in treatment terms, and this approach still expects the employer to part with the cash up front, before eventually receiving (a presumably partial) return of some of that spend at a later date.  So this moves into the realms of a business decision for each and every case.  And business decisions often take time to approve and action.  All of which may delay treatment (and therefore a return to work) further.

So, whilst these proposals are very welcome, it remains to be seen if the new service will deliver equally, or even comparable, results to that of the pilot projects.  Much will depend on the outcome of the consultation, when both employers and the employee benefits community will better understand how and where the tax-breaks actually apply.

As ever, we will aim to keep you up to speed on this one as the story develops.

Best regards

Steve

 

 

 

Posted by at 7:26 AM in Group risk, Healthcare, International healthcare, Steve Herbert | Permalink | Leave a comment
15 April 13

Defined Ambition moves on…

Some followers of this blog will remember that I have been talking about a new concept in pension savings, Defined Ambition, for more than a little while now.  In simple terms, it’s a way of providing some level of pension guarantee for those saving for their retirement.  In theory this is achieved by the sharing the risk between both saver and employer.

For those not up to speed on this story, this post from last year may help:

http://www.jelfgroup.com/blog/2012/04/high-ambitions/

And although the conversation is only creeping forward, there is some progress.  Crucially, a few more of the ‘talking heads’ of the industry are now mentioning this, which is usually the first step towards some level of acceptance of a new concept.

And to illustrate this, please see the following article from a pensions publication (you may need to register (it’s free!) to see the content):

http://goo.gl/S7ZcZ

A very long way to go on this yet, but will keep you posted as the conversation develops.

Best regards

Steve

 

Posted by at 6:30 AM in Articles and technical, Pensions, Steve Herbert | Permalink | Leave a comment