Ensuring Business Success


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Ensuring Business Success

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