Group Pension & Risk Benefits

A Group Pension Plan is a pension provided by an employer for its employees. It is a tax efficient way for you to help ensure your employees are financially secure in retirement.

Opes Financial Planning Ltd can explain the differences between the different type of arrangements and also facilitate the establishment of a Group Pension which would best suit your business.

Under section 121 of the pensions act, employers are required to offer their employees access to a Personal Retirement Saving Account (PRSA), however, the employer does not have to contribute.  Offering a more comprehensive benefits package can have lots of advantages to employers.

 

Why offer a group pension?

• Tool for attracting key employees – One of the most effective ways to attract employees to a business is by offering a pension and risk benefits package. This can give you an employer the edge over a competitor.

• Tools for staff retention – By putting in place a group pension arrangement, it promotes an image of that the business cares about its employees. It shows a level of commitment that you want the employees to remain in the company for the longer term. Some arrangements allow for any employee contributions to be recouped should the employee leave the company within a certain time frame which gives the employee and incentive to remain with the company.

• Tax efficiency – Contributions made by employers receive tax relief against corporation tax. Contributions made by an individual employee to the group scheme are allowable for tax relief at the individual’s marginal income tax rate.

 

What services do Opes Financial Planning Ltd offer your employees?

• Setting up the scheme –We have experience in understanding an employer’s needs and can help you identify the best fitting pension structure for your company. We will tender the scheme to the market and provide a full proposal for you. We will provide an on-site presentation for your employees with one-on-one meetings.

• Financial Review – Pension funding should be part of an employees overall financial plan. We can analyse each employee’s unique situation and offer impartial advice. We would carry out risk profiling with employees and recommend pension contributions which will help achieve their retirement funding target.

• Retirement Options – When an employee leaves employment, they will be offered a number of leaving options with regard to their accumulated pension fund. We can help employees understand these options and explain the advantages and disadvantages of each option.

 

Group Risk

Employees are the most important asset to a business. Protecting them has long been recognised as an essential business activity.

Group Risk enables you to provide your employees and their dependants with financial assistance if an employee should become seriously disabled or die.

 

There are 2 types of plans which you can provide:

• Death in Service Benefit plans - can pay out a lump sum and/or a pension to an employee’s dependant (spouse / civil partner / other dependant) if an employee should die while covered under the plan.

 

• Disability Benefit plans - will pay an income to you if an employee is unable to do their own job due to illness, injury or accident. The Disability Benefit plan can include Premium Protection which means both your and the employee’s pension contributions are maintained while the employee is unable to work.

 

Why offer group risk benefits?

• Tool for attracting key employees – One of the most effective ways to attract employees to a business is by offering a pension and risk benefits package. This can give you an employer the edge over a competitor.

 

• Tools for staff retention – By putting in place a group risk arrangement, it promotes an image that the business cares about its employees

 

• Cost Effective - The benefits achieved under Group Risk cover are highly valued as they provide financial protection for employees and indeed for their families, yet they are relatively inexpensive for employers to insure.Employer sponsored schemes can give employees access to insured protection cover either at a reduced rate or free of charge as they are covered under one “Group” policy. Because of the nature of Group risk cover – coveris more readily available to any employee, given that each member rarely has to go through any medical underwriting.

 

• Tax efficiency – Cost of cover can normally be written off against corporation tax.

 

 

Want to find out more?

Contact us for advice on what benefits you should be implementing in your business and one of our advisors will carry out a review.

 

The Financial Conduct Authority does not regulate Tax Advice, Qualifying Recognised Overseas Pension Scheme, Estate Planning.

The value of investments and the income derived from them can fall as well as rise. You may not get back what you invest.