engageEDITOR Richard Daveyrichard.davey@pshpc.com0203 327 5714

EDITORIAL CONSULTANT Suzanne Clarkson

REGULAR CONTRIBUTORSCheryl Brennan, Head of Risk Consulting020 3327 5703

Steve Pullen, Senior Consultant0203 327 5725

Soraya Chamberlain, Head of HealthcareConsulting07709 334 875

Beate O’Neil, Head of Wellness Consulting01737 854 434

Martin Collins, Senior Consultant0203 327 5709

Simon Corps, Senior Consultant0203 327 5716

Hayley Goodwin, Senior Consultant0203 327 5726

Crowley Woodford, Employment Partner,Ashurst LLP crowley.woodford@ashurst.com0207 859 1463

Art Editor Lisa McMahon

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Distributed By Asendia, Swiss Post International(UK) Ltd, Hounslow, Middlesex, TW4 6NF

Published ByPSHPC, 11 The Strand, London WC2N 5HR0203 327 5000 www.pshpc.com

DISCLAIMERAll text and layout copyright of PSHPC. Nothing in thismagazine can be reproduced in whole or part withoutthe written permission of the publisher. The informationcontained in these articles is not intended to constituteadvice and should not be considered a substitute forspecific advice in relation to individual circumstances.The content is intended as general information which isprovided without any warranties of any kind, expressly or implied.

Where have the last 12 months gone? Maybe it’s justa symptom of my age but 2013 seems to havepassed at an astounding rate. Age issues aside, this

speedy passage of time has probably got a lot to do with thetempo of changes faced by many HR professionals: auto-enrolment, financial cutbacks, company restructures and, sadly,company closures.

The New Year will inevitably bring with it the usual round ofresolutions. Whilst some may consider this an act of folly, othersfind the annual goal setting ritual a valuable motivational tool,thanks to a clear action plan and reward structure – whether thatbe a route to weight loss, improved fitness, increased savings ormaybe even a new job.

Employers might be well advised to introduce some of this ‘new year, new you’ mentality into theworkplace. Ensuring a clear reward structure to help steer, motivate and retain employees might seemobvious but whilst the most common reward – the pay increase – still remains somewhat inconspicuous,other avenues must be explored.

According to figures from the Organisation for Economic Cooperation and Development, the UK has thefastest growing economy in the world, yet few businesses will be seeing this reflected in their bottom lineand will be left scratching their heads as to how to manage continued employee engagement.

In this issue of Engagewe place a clear focus on cost savings and engagement with a ‘new year’ theme inmind – from taking full advantage of rate reductions on pensions-linked benefits post auto-enrolment tohow to put in place alternative benefits that employees will value at little or no expense. We also includea full calendar of ideas for health and fitness focused activities to provide much needed support toemployees to achieve their personal and professional goals.

Meanwhile, why not consider some quick wins immediately. Let’s face it, December is possibly the least‘sober’ month of the year for many…What’s more, short-term absence figures are likely to suffer from afestive spike. Simple ideas from ‘bring and share’ comfort food to time off to help out a local charity mighthelp improve staff morale and performance over the Christmas period.

All that’s left is for me to wish all our readers and sponsors a very happy Christmas and a healthy, productiveand prosperous New Year. e

All the best,

3

WELCOME

3 WELCOMEBy Richard Davey, Editor

4-6 MARKET UPDATEThe latest news and views from employeebenefits providers and PSHPC

7 ASK THE ANALYSTOur healthcare & risk experts answer readerquestions

8-11 COVER STORY: PENSION-LINKED BENEFITSRichard Davey explains why it might beprudent to review your pension-linkedbenefits now. Apparently cost savings arethere for the taking post auto-enrolment

12-15 TECHNICAL VIEWPOINTAdvice from the experts on how to ensurethe best possible outcome when carrying outrenewals

16-20 HEALTH & WELLBEINGAs the New Year approaches, it’s the idealtime to put in place a wellness plan, saysBeate O’Neil. We include a full calendar ofideas for year-round activities

21 CASE LAWCrowley Woodford, Employment Partner atlaw firm Ashurst, examines a recent rulingthat might end up adding to the cost andcomplexity of redundancy exercises

22-23 GROUP INCOME PROTECTIONRichard Davey focuses on ways to keepemployees safe and well during the wintermonths

24-25 VOLUNTARY BENEFITSDon’t let a minor detail like an absence of abudget stand in the way of your employeebenefits ambitions, says Richard Davey

26-27 LIFETIME ALLOWANCEImminent changes to the lifetime allowancemight necessitate a complete overhaul ofyour group pension and death benefitarrangements, warns Richard Davey

Richard DaveyEditor

CONTENTS

28-29 HEALTHCARE TRUSTSSoraya Chamberlain provides a health trustcase study, highlighting some of the commonstructure and management-based issues,together with ways to overcome them

30-31 WELFARE REFORMEnsure employees have benefit certainty byde-linking state benefits from group incomeprotection design, advises Hayley Goodwin

32-33 GROUP LIFETom Bond warns that policies meant toprotect businesses and employees can endup penalising if not structured carefully

34 THE PANELAn introduction to the providers who havecontributed to this edition of Engage

35 WORK, REST & PLAYEnter our fabulous photo competition to winan ‘Unusual Escape’ for two – from HobbitHuts, to Eco Pods and one-of-a-kind hotels.Also enjoy the first in our series of readerrecipes!

2

MARKET UPDATES

Protected = productive

T he results of Canada Life’s latest Group Productivity Indexconfirm the high value placed on group income protection(GIP) and critical illness (CI) products by employees. Conversely,

the findings also reveal the low number of companies that actuallyprovide such benefit for staff.

Employees covered by GIP and CI say their motivation andproductivity are improved as a result, according to a quarter (24%) ofrespondents to Canada Life’s latest Group Productivity Index. Despitethis, only 15% said they’d receive such protection from their employerif they were to become ill and couldn’t work. An additional 14% werecovered by an independently sourced and funded protection product,whilst almost a third (31%) wouldn’t have any financial protectionwhatsoever.

Set these results against the backdrop of London being one of theleast productive regions in the country, according to Canada Life’sresearch, and the case for putting in place employee protection – inthe Capital at least - seems clear-cut.

Over a fifth of Londoners (21%) are unsatisfied with the amount ofwork they produce, stating that they often do not achieve their goalsfor the day. Gossiping colleagues represent the top barrier toLondoner’s concentration at work, along with work-related stress insecond place, closely followed by phone calls / enquiries. e

Paul Avis, Marketing Director, Canada Life Group Insurance

Direct dial

Generali UK group income protection (GIP) scheme membersand their eligible dependants now enjoy free access to ahigh-quality employee assistance programme (EAP)

delivered by PPC Worldwide. The standard provision under theGenerali EAP for GIP clients is a telephonic service. However, anyGenerali UK client, whether a GIP or group life assurance (GLA)policyholder, can now also purchase a face-to-face counsellingservice module at very competitive preferential rates. Typically £4.25per member per annum will cover the cost of a ‘five face-to-facesessions’ module and can include services for eligible dependantswithout additional cost should this be required*.

Valuable information, advice and support, 24/7, 365 days a year, viaa confidential freephone helpline and a dedicated web-portal iscommon to both telephonic and face-to-face models, as is fast accessto telephonic counselling (including support and cognitive behaviouraltherapy where appropriate), wellbeing and health advice, independentlegal advice, financial advice (including personal debt management),crisis management advice and telephonic bereavement counselling.

What are the tax issues? Although general welfare counselling isexempt from benefits-in-kind taxation, any legal and financial adviceis regarded as a taxable employee benefit. Employers are advised tomake independent arrangements with regards to declaring this totheir local tax office. Where services are offered to dependants, thismay also be considered a taxable benefit. e

*Dependants’ cover excludes legal advice but includes signposting/ guidance.

Tracey Ward, Head of UK Sales & Marketing, Generali Employee Benefits

5 4

Valuable reminder

Many employers provide death benefits for their employeesand insure their promise to pay through group life insurance.As part of this, they ask employees to nominate

beneficiaries. So far, so good, but leaving it at that is a mistake. Relationships change, so the original nominees may be far from the

member’s preferred beneficiaries by the time a claim arises. In themeantime, they could have married, had children, divorced etc. Unlessmembers are actively reminded to update their nominations, thescheme trustees could be left to handle a claim with a misleading ideaof who is actually dependent on the member, delaying the distributionof important and often urgently needed benefits.

Reminding members to keep their nominations updated alsoreminds them of the benefit their employer has so generouslyprovided. Sadly, members are often ignorant either of the amount ofbenefit their employer is providing or even that it exists at all.

For these reasons, Ellipse has developed an online nomination ofbeneficiary facility for its group life clients. Members are invited, byemail, to set up their own – secure – online account and nominatetheir beneficiaries. They are asked each year to review their selectionsand check they are still valid. In the event of a claim, details of thelatest nomination are sent to the trustees. The claims process istherefore optimised and, what’s more, the members are regularlyreminded that they enjoy a valuable benefit. e

Louise Donovan, Product Manager, Ellipse

Easy life

W ith recent Department for Work & Pensions researchindicating that only 9% of employees have opted out,auto-enrolment is so far proving very successful,

encouraging employees of large organisations to save for their future,whilst also providing many with the additional benefit of group riskcover, where eligibility is linked to pension scheme membership.

To support employers, Zurich and other insurers have put in placeconcessions to ease administration for existing customers and supportthose employers taking this opportunity to introduce group riskbenefits alongside auto-enrolment.

Zurich’s customers with pensions linked eligibility can benefit froma concession that aids member entry to group risk arrangements as aresult of auto-enrolment, and includes:• The actively at work requirements will be waived for group life

schemes with 20 or more lives in respect of new members as a resultof auto-enrolment, including those that were typically consideredlate entrants. We also offer cover for long-term absentees up to amaximum benefit of £250,000 (benefits above the automaticacceptance limit or £250,000 if lower will be considered subject tomedical underwriting).

• Cover will be provided for employees up until the point that theyopt out of the pension scheme.

• Premiums will only be charged for members who do not opt outduring the auto-enrolment window and will be charged from theauto-enrolment date rather than assuming an average movementfrom the mid-year point. However, this latter approach (known asthe simplified administration approach) remains appropriate fornormal leavers and joiners. e

Nick Homer, Group Risk Proposition Manager, Zurich Corporate Risk

NEWS ROUND-UP

Office moveThe integration of PSHPC and Enrich continuedapace over the summer and is now complete.Things have been moving rapidly and, as a result,we closed the doors on the London Moorgateoffice in the middle of November and the vastmajority of staff located therein moved toLondon’s Strand office with a handful of theteam, owing to logistical sense, now having theirprimary base in Redhill.

AwardsPSHPC has won the award forthe Best Healthcare TrustIntermediary in the 2013Health Insurance Awards, thepremier awards for the UKhealth insurance andprotection industry.

The awards, which recognise and rewardexcellence in both intermediary and providerbusinesses, recently took place at the GrosvenorHotel, Park Lane, London.

PSHPC won the award for clearlydemonstrating to the judges that it hadprovided a client with complete control andflexibility over the design of its scheme, ensuringthat it remained cost effective and had long-

term sustainability, and by demonstrating thedevelopment of an effective relationship withthe scheme's Trustees.

Soraya Chamberlain, Head of HealthcareConsulting at PSHPC, who collected the awardon behalf of the company, said: "We areabsolutely delighted to win this award whichrecognises our dedication and commitment toproviding our clients with expert independentadvice in this very important area.

“A health trust can be hugely beneficial tocertain clients but it comes with responsibilities.We play a very important role in helping clientsand Trustees design and manage a cost effectiveand sustainable health trust."

SeminarsOn the back of the above award win, PSHPCwould like to share our experiences with anyemployer who would like additional support andadvice in this area of expertise. A healthcaretrust is typically suitable for an organisationwith a population of, loosely, 500 members ormore or a premium spend which exceeds £1m. We do anticipate heavy subscription to theseseminars and further details will be available onour website shortly with dates to be announcedfor late January onwards.

We will be extending our seminar programmeto a number of other subject areas in the NewYear. Do look out for additional invitationsshortly or keep an eye on our website for furtherinformation. Go to www.pshpc.com

News round-upRichard Davey, editor, brings you the latest developments and product news from PSHPC

6

• Aberdeen• Birmingham• Boston (USA)• Bristol • Edinburgh• Guildford• Herne Bay• London• Newcastle• Redhill• Wokingham

BEST HEALTHCARE TRUST INTERMEDIARY Y TRUST INTERMEDIAR

THCARE BEST HEALBEST HEALTHCARE

PUNTER SOUTHALL OFFICES

ASK THE ANALYST

7

AThis tends to be a point of issue foremployers. It is usual for insurers tooperate some form of reasonable and

necessary clause when it comes to fees and, onrare occasions, certain insurers are unable tomeet the inflated fees of consultants in full.

However, they will usually offer to help source a consultant whose fees will be met infull, if a member wishes. It’s also worth notingthat the potential for shortfall does not exist with certain policies. Speak to us to findout more.

AThere has been much publicity focusedon the use of genetic diagnosis and DNAprofiling to assess an individual’s

increased risk of the disease - particularlyfollowing Angelina Jolie’s recent doublemastectomy. Typically, UK health insuranceproviders will not pay for genetic testing,counselling, screening or any treatment that isrequired following the results of the genetic tests.This is because it is considered preventativetreatment: PMI aims to provide benefits fornecessary and active treatment of a disease,illness or injury, which returns the individual totheir state of health immediately before theillness or injury struck. However, if an individualdisplays symptoms of a medical condition, orthere is a proven medical need and it is clinicallynecessary, insurers may pay for a genetic test ifit will help diagnose the condition. For obviousreasons this is complex subject matter, whichattracts regular debate with regards to whetherproviders will change their position in the future.

AWhilst, typically, complications inchildbirth are covered, insurers providingPMI in the UK do not cover normal

pregnancy on even their most comprehensiveplans. This is because maternity is classed as anormal life event and UK health insurance is justfor illness. Plus PMI is designed to work intandem with the state-run health system andthe NHS remains the safest place to have ababy, with maternity care being free of charge.

The cost of planned childbirth privately is nowclose to £10,000, which, at a time whenemployers are struggling to contain escalatingPMI premiums, is a luxury that can be avoided.

Ask the analystDO YOU HAVE A BURNING HEALTHCARE OR RISK QUESTION?

CONTACT OUR EXPERTS AT PSHPCCLIENTANALYSTS@PSHPC.COM

QGiven clinical negligenceclaims for maternity haverisen by 80% in the last five

years, does private medical insurance(PMI) cover childbirth?

QOur PMI policy states fullcover for eligible conditions,but a number of my

employees have received shortfalls insurgeon and anaesthetist chargesrecently. Is this normal?

QOur PMI scheme providescomprehensive cover forcancer. I have just read

about a £100 test for breast cancerthat is being developed by CambridgeUniversity. Would this be covered?

auto-enrolment. Of course, there may beexceptions where costs increase, such as largeblue-collar workforces or higher risk positions.However, most employers will have seen thatthe increased membership of the pensionscheme has primarily come about as a result ofthe younger workforce. It is this latter group’spreference for salary that has left them devoidof any pension plan and furthermore any realfinancial protection.

Market rates for group life and incomeprotection benefits have been very reasonablein recent years but are now steadily increasing,according to Nick Homer, Group RiskProposition Manger at Zurich Corporate Risk.

“So in addition to reaping potential cost benefitsafforded by an increase in membership numbersand a change in age profile, this could alsorepresent the perfect opportunity to lock in acompetitive rate for another two years,” adds Nick.

Cause forcelebration

COVER STORY: PENSION-LINKED BENEFITS

8

Whilst all the signs are pointing towards reduced rates for somepension-linked benefits thanks to auto-enrolment, it might beprudent to review your scheme now, says Richard Davey

9

It’s semi official! Auto-enrolment is having apositive effect on our marketplace. It is notonly helping to increase the retirement

saving habit, it is also ensuring that more – andyounger - individuals are protected by a rangeof group benefits where eligibility is linked to thepension scheme. Consequently, rates in manycases are reducing thanks to the associatedimproved scheme profiles.

So significant are the potential ratereductions – one of Zurich Corporate Risk’slarger group life cases saw a rate reduction ofaround 18% - that in some cases even thosecompanies with a held rate post auto-enrolmentwould be shrewd to look at what is nowavailable to them considering their potentiallyvery different scheme profile.

Feedback from clients suggests that auto-enrolment was far easier than anticipated,leaving some scratching their heads as to whatto do now. Why not use this unexpected free-time to try and save some wider employeebenefits related budget and, in doing so, helpsubsidise the additional pension funding thatmost organisations have had to source.

Similar advice is being proffered to thosecompanies that haven’t yet auto-enrolled butwant to establish a definitive budgetrequirement prior to their staging date. Even ifthey are currently enjoying a held rate,potentially for a further 23 months (under atwo-year rate guarantee) they shouldn’t assumethis will stay the same once membershipnumbers increase post auto-enrolment.

Many employers will be pleased to hear thatsome form of cost reduction can come out of

auto-enrolment istypically reducing the unit rates by around 5-10%”“

on risk’ basis or, in other words, from the date ofjoining the pension scheme.

Dependent upon the time of year at whichmembers join the scheme, this might be morepreferable to the usual simplified administrationapproach where those members leaving andjoining are taken to have done so at the midpoint of the policy year (i.e. all are charged foran average six month period). However, asmentioned, the beneficial aspect of thisapproach is dependent upon the staging date.Therefore, it’s worth choosing those providersand advisers who will account in a way that ismost favourable to each individual client’scircumstances in order to avoid a potentiallyheavy adjustment at the end of theyear in line with the additionalmembership. (Please refer to thebox on page 12 for furtherinformation).

In or out?The Government is helpingto reinforce these messageswith its increased focus onretirement planning and itscommunication of the linkbetween savings and protection.It is becoming ever more clearthat the employer has a crucialrole to play in implementing theGovernment’s ‘Big Society’ vision with regardsto creating a more financially resilient society.

However, in true Lottery fashion you’ve got tobe in it to win it! The success of the Government’svision relies heavily on the success of auto-enrolment. And, as we are all aware, membershipof this particular ‘club’ isn’t compulsory.

Employees can obviously elect to opt out oftheir employer’s pension scheme. In cases whereeligibility to benefits is linked to the pensionscheme, employers can dictate that those who

have opted out of auto-enrolment are no longerentitled to any linked

benefits such as lifeassurance – even if theydecide to opt in to the

pension at a later stage. In ouropinion, this represents a very

short termist approach becauseit effectively closes the door

permanently to many youngermembers of the workforce and will only

serve to ensure that the profile of these closedschemes gets older and, consequently, moreexpensive.

A further consideration for members optingout of the scheme is that this decision makesthem ‘discretionary entrants’. Some employersmay allow discretionary entrants to be eligiblefor benefits at a later date where, for example, amember marries and decides to join the pensionplan and, in doing so, supposedly secures thelinked benefits given to a pension member.

Employers need to pay heed, however, as this isnot entirely accurate. A discretionary entrant willnot be automatically provided with benefitswithout the need for medical underwriting ashas been typical in this situation for many years.By allowing discretionary entrants, employersmust factor in the additional matter of medicalunderwriting which can be arduous and, by itsvery nature, can expose employers to risk unlessthis is controlled very carefully and it is madeclear to members that the linked benefitscannot be guaranteed.

These potential issues should also beconsidered in line with any employmentcontracts or scheme rules that state theemployee will become automatically eligible forbenefits such as life cover, income protectionand PMI.

It’s worth making clear the provision of anyeligibility linked benefits in pre auto-enrolmentcommunications. This should ideally presentemployers with a useful way of encouragingemployees of all ages to participate in thepension.

Another option would be to simply de-linkthe group risk scheme and provide group riskcover for all employees rather than just thepension scheme members. Paul Avis, MarketingDirector of Canada Life Group Insurance,comments: “This will get over the problem ofmany lower earners and younger employeesopting out and will therefore ensure a reductionin the unit rate.”

Conversely, it can be argued that auto-enrolment creates a very useful gateway forintroducing other benefits into the workplace,offering opportunities to enhance the overallremuneration package and reward employees atminimal cost. e

Richard Davey is Head of CommercialDevelopment at PSHPC

The backgroundIn around 50% of cases, eligibility to variousgroup benefits – including life, incomeprotection and private medical insurance (PMI) - is linked to a company’s pensionscheme. Therefore, as the scheme expands asa result of auto-enrolment an increasingnumber of staff are likely to become eligiblefor those benefits.

In the case of group risk schemes specifically,underwriters apply unit rates, which basicallymeans that the cost is calculated according tothe scheme size and average age profilealthough not forgetting occupational profileamongst a few other factors.

“The general feeling from our underwriters isthat auto-enrolment is typically reducing theunit rates by around 5 – 10% thanks primarilyto a combination of a shift in membershipnumbers and, potentially, a change in ageprofile,” says Nick.

“As mentioned, one of our schemes hasalready seen a rate reduction of around 18%.

This scheme also saw the weighted average agedrop by four years from 43 to 39.”

Zurich Corporate Risk’s underwriters claimthat a one-year reduction in genuine weightedaverage could be worth around 9 – 10%. What’smore, where a customer switches insurer theimpact could be greater.

Although the overall costs of providing apension will undoubtedly increase in many caseswhere auto-enrolment induced expansion takesplace, the potential shift to a younger age profilemight make the associated group risk schememore attractive to other providers. In cases ofre-broking it is not beyond the realms ofpossibility that any increase in pensionsexpenditure might be reduced thanks to thelikelihood of a decrease in ‘per head’ costsassociated with the group risk benefits.

Meanwhile, whilst on the subject ofaccounting, it’s worth taking note that for anymembers who become eligible to group riskbenefits thanks to their being ‘auto-enrolled’premiums will be charged on an ‘accurate time

By allowingdiscretionary

entrants, employersmust factor in the

additional matter ofmedical underwriting

which can be arduous”

“ In true Lottery fashionyou've got to be in

it to win it!”“COVER STORY: PENSION-LINKED BENEFITS

11

POTENTIAL BANANA SKINS

1. Data requirementsFind out exactly what the insurer will needfrom you.

2. AccountsYour staging date will determine whether‘simplified’ or ‘live data’ accounting is mostappropriate for your needs.

3. Member underwritingAny high earners joining the scheme may havebenefits over the free cover levels. Also, it’sworth bearing in mind that the lifetimeallowance will be reduced from its current level

4. Closed schemesThe permanent closing down of anyeligibility to benefits for all those whoinitially opt out of the pension could beconsidered very short termist and willprobably lead to unattractive profileswhich, in turn, leads to expensive

premiums.

of £1.5m to £1.25m from 6 April 2014. Somehigh earners may have already opted out oftheir company pension scheme for thisvery reason but will be automaticallyopted in with the introduction of auto-enrolment. This will obviously have animpact on their lifetimeallowance. (Pleaserefer to the article onpages 26-27 of this issue ofEngage for more information on theimplications of the changes to the lifetimeallowance).

10

GROUP RISK

1. Setting the strategyFocus on past, present and future renewal-basedachievements as well as the problems. “Acommon mistake made by both clients andintermediaries is that they start by lookingforward,” says Cheryl Brennan, Head of RiskConsulting at PSHPC. “We always start bylooking back.”

First, ask yourself: did you achieve renewal inbudget? Were you armed with enoughinformation on the market and your options?Did time constraints affect your decision?(PSHPC advise at least five months for a reviewas opposed to the historical three-monthguidelines) and did you get the outcome youwere looking for?

Next, focus on the future: consider all of yourobjectives from compliance with the latestlegislation, to return on investment, employeeengagement and getting the most from yourinsurers – particularly with regards to proactiveabsence management and rehabilitationservices. Some insurers might charge for suchservices so consider what price, if any, you arewilling to pay.

Reinvest savingsThat said, auto-enrolment is bringing savings tocompanies where eligibility to group riskbenefits is linked to the pension scheme thanksto the increased number – and younger ageprofile – of savers, as discussed in the coverfeature on pages 10-13 of this issue of Engage.

With this in mind, it might be advisable toreinvest those savings in absence managementfocused products and services.

Paul Avis, Marketing Director of Canada LifeGroup Insurance, says: “We’re seeing a lot ofcompanies taking their savings on deathbenefits and recycling them into health benefits.

“At Canada Life, a two year, 0.5% salaryincome protection scheme will cost you 0.25%of salary. For that you get the financial benefit[0.5% of salary for those employees long termabsent after 26 weeks] plus an employeeassistance programme, online and telephoneadvice service, second medical opinion serviceand outsourced vocational rehabilitation.”

Business plansMeanwhile, consider also whether there are anywider business matters that will impact uponthis renewal – for example, future auto-enrolment staging date, merger and acquisition(M&A) activity etc.

“But bear in mind that you can buy a two to three year rate guarantee that allows for a ‘plus or minus’ 25% change in membership,”adds Paul.

“Those companies planning M&A activitytend to send us employee information fromboth companies concerned. The buyingorganisation will want to check the costimplications of any current and future benefitcommitments.”

Wish-list firstFinally, when carrying out a market review, price

is important but this aspect should comesecondary to your wish-list, says Cheryl

“You will notice a significant difference in theability to negotiate on price when you havealready engaged with insurers on a strategiclevel.

“If an insurer knows there is a good chancethey will secure your business, price will becomea more commercial decision. Insurers need to beable to tell the difference between a trulyengaged potential client and someone that isusing them to price check.

“They may assume the latter and that willsimply end up in a lose/lose situation.”

2. Know your marketThe market is constantly evolving. Consider meeting with insurers to understand

You will notice asignificant difference

in the ability tonegotiate on price when

you have alreadyengaged with insurers on a strategic level”

“TECHNICAL VIEWPOINT

13

Whilst most employees are getting geared up for the festive season, we spare a thought for thepoor HR personnel who are knee-deep in renewals… Here, we provide some hints and tips fromour expert consultants and provider partners to help ensure the best possible outcome

12

The ideal renewalCheryl Brennan,Head of RiskConsulting, PSHPC

Paul Avis, Marketing Director, Canada Life Group Insurance

Martin Collins, Senior Consultant, PSHPC

existing insurer isn't a decision that should betaken lightly or made at the last moment.

“One of the most common complaints thatwe hear, from other intermediaries’ clients whenwe've won the business, is that they felt pushedinto renewing because of the timescalesinvolved,” says Martin Collins, Senior Consultantat PSHPC.

If a corporate client wants to ensure that a fulland complete market review is carried out it'sessential that the process is started a long wayin advance of renewal.

“We are suggesting that our larger clientsstart the process as early as six or seven monthsinto the contract year,” adds Martin.

This is particularly important for clients thatare considering changing their funding vehicle –i.e. moving to a Trust arrangement - but is still asensible option for most organsiations, whatevertheir circumstances.

“We have recently started to suggest thatclients conduct a beauty parade of potentialinsurers before general renewal terms andfinancials are even discussed.

“Getting bogged down in the detail at anearly stage can often cloud the decision-makingprocess and move the emphasis too muchtowards price.”

2. Focus on the objectivesMake sure the client's Statement of Demands &Needs is clear and recorded in full prior to therenewal process starting. This ensures there areno surprises and that all parties are focused onachieving the correct outcome at renewal. Thisprocess should cover everything from potentialpreferred insurers to any potential benefitchanges and also budget requirements.

3. Get the right fitMake sure the potential health insurer has theright cultural fit for your organisation.

“It might seem obvious but don’t waste yourtime investigating insurers whose benefits won’tappeal to your workforce,” says Martin.

“Will a blue-collar manufacturing companyreally be interested in cheap gym deals and lowcost bicycles?

“Ensuring the right insurers are consideredfrom the outset will save mistakes in the long term.”

4. Explore the whole of marketThat said, if price is the number one issue, allinsurers should be considered. “Just because theyaren't a household name doesn't mean theycan't provide an excellent level of service at avery competitive price,” says Martin.

5. Accuracy of dataFrom an administration point of view, the accuracy of the membership data isparamount.

The PSHPC administration team recommendsthat a full membership audit should be carriedout prior to the commencement of the renewalprocess. Insurers generally have a tolerance levelof 10%. In other words, if the actualmembership figures differ by more than 10%they withhold the right to re-price the terms.This can effectively mean starting the entirerenewal process again. Or, at the very least, itleads to issues around invoicing once therenewal is completed.

6. Get the right priceThe lowest terms are not always the best terms.

Make sure that the terms agreed are fair and accurate. PSHPC provides a range ofactuarially sound premium projections that willaccurately reflect the risk of any client'sparticular scheme.

“Setting the funding and, ultimately, thepremium at the correct level at each renewalwill ensure sustainability going forward and leadto the ongoing renewal processes being lesspainful each year,” says Martin.

7. Communication is keyCommunication to members is of paramountimportance. It is very unlikely there will be zerochanges to a PMI scheme at renewal. These mayrange from a simple variation in P11(d) rate toa complete change of provider. Whateverhappens, the members should always be kept inthe loop.

Obviously if the change is as drastic as aswitch to a different insurer or an overhaul ofbenefits, this should be communicated to themembership as early as possible before theactual renewal takes place. e

15

what’s available. Look back at previous proposalsand challenge insurer recommendations, whilstexplaining why they were unsuccessful.

“This will help both parties to have areasonable discussion as to whether theoutcome is likely to be different this year. Andperhaps the insurer can sharpen his pencil thistime around!” adds Cheryl.

3. Get your data right…the more the betterInsufficient and/or inaccurate data leads toassumptions. Share as much information onyour business as possible.

“If you just send us data, you’ll just get aprice,” says Paul. “Send us succinct, accuratedata on what you’re doing to reduce absenceand improve wellbeing and it’ll have a beneficialaffect on your rate.”

AbsenteesThis also applies to the sharing of informationon absentees. It’s vital to inform the insurer ofany absentees of three months or longer, andalso short-term absences where certain long-term conditions are concerned.

“This is a must to help avoid overpricing andpotential uninsured liabilities,” says Cheryl.

Paul adds: ”If you switch insurer, they’llimpose a new ‘Actively at Work’ requirement. Ifyou haven’t provided absentee information youmight find you’re not covered by either your oldinsurer or the new one.”

[For more information on the ‘Actively atWork’ requirement, turn to pages 32-33 of thisissue of Engage].

Discretionary entrantsInformation on late or discretionary entrantsduring the year is also a must in order to avoidany potential uninsured liabilities. Paul adds:“You get situations where a new CEO, for

example, joins a company and they wouldn’tnormally be eligible to join the pension schemefor six months but their contract of employmentsays benefits are provided from day one. This kind of disconnect between HR andCompensation & Benefits is not uncommon.”

Free cover limitFinally, it pays to be completely upfront withinsurers about any employee over the free coverlimit as they will need to be medicallyunderwritten. This needn’t be an onerousprocess, as Paul explains:

“At Canada Life, we only underwrite 1 in 500insured employees and we try to make it as easyas possible. It can often be done via medicaldeclaration or telephone interview in additionto on site.”

4. NegotiateOnce you have your full range of proposals fromthe market, check they are correct and thenstart negotiating.

“You need to know you have the best possibleproposal the insurers are able to offer,” says

Cheryl. “If you don’t want to spendtime negotiating you can consider a‘best and final’ approach with theinsurers, so long as they all know that

you’re serious!”And last but not least, it’s well worth

considering engaging an intermediary thatadopts all of the above approaches as they willmanage and do all of this for you…

PRIVATE MEDICALINSURANCE1. Give yourself enough timeChanging private medical insurance (PMI)provider or even just renewing with your

14

Just because they aren'ta household name

doesn't mean they can'tprovide an excellent

level of service at a verycompetitive price”

“TECHNICAL VIEWPOINT

A common mistakemade by both clientsand intermediaries is

that they start bylooking forward”“

Sickness absence fell 7%in one month…”“The promise to eat healthy and exercise

regularly represents the top New Year’sresolution again and again. After the

Christmas “binge”, which seems to last thewhole month of December, gym membershipsspike in January and then return to normal levelsby mid February. It’s a familiar pattern. Clearly,ongoing encouragement is required andemployers are best placed to offer this support.What’s more, a growing bank of evidence showsthat a happy and healthy individual is a morecommitted and productive employee.

But don’t just take our word for it. TheGovernment is cogniscent of the role that couldand should be played by UK businesses when itcomes to employee health and wellbeing. A newindependent occupational health advisoryservice is expected to be in operation by the endof 2014, giving employers of all sizes help withmanaging long-term sickness absence.

The new independent assessment andadvisory service will provide bespokeindependent advice to employers for cases ofsickness absence lasting more than four weeks.Only 10% of workers in small businesses haveaccess to an occupational health serviceaccording to Government figures, comparedwith more than half of staff in larger firms.

The service will include case management forthose employees with complex needs whorequire ongoing support to enable their returnto work. It will also provide signposting toappropriate interventions including UniversalJobmatch, an online jobsearch service for thoseemployees who are able to work, but unlikely toreturn to their current employer.

The Department for Work and Pensions isleading the commissioning of this service andhas established an internal project team, whichis currently issuing invitations to tender tointerested parties.

On announcing its launch earlier this year Lord

Freud, the Minister for Welfare Reform, said thatthe new service would save employers up to£160m a year in statutory sick pay and increaseeconomic output by up to £900m a year.

Why here? Why now?The new service follows a recommendation byDame Carol Black and David Frost, formerdirector-general of the British Chambers ofCommerce, as part of their 2011 independentreview of sickness absence in the UK. TheGovernment in turn published its response totheir report in January 2013, accepting virtuallyall of the Frost/Black recommendationsincluding measures to improve sickness absencemanagement, reforming the benefits systemsand supporting healthcare professionals.

It is generally accepted in corporate circlesthat the key thing holding back companies withregards to employee health and wellbeinginitiatives is the lack of evidence to support thebusiness case for investment. To this end, one ofthe key recommendations to come out of theFrost/Black report was that Government shouldwork with employers and representative bodiesto develop a robust model for measuring andreporting on the benefits of employerinvestment in health and wellbeing. Employersshould use this to report on health and wellbeingin the boardroom and company accounts.

Wanting will notmake it so...

16

Employee wellness programmes are fast becoming integral to the success of a business. As we approach another - all-too-familiar - round of health & fitness based New Year’s resolutions, there doesn’t seem a better time to put in place a

12-month corporate wellness plan, says Beate O’Neil

MARKS & SPENCER

Winning submission for Engagement &Wellbeing, BITC Responsible BusinessAwards 2013

M&S strongly believe there is a correlationbetween employee engagement and businesssuccess. To maximise participation in Plan A, their wellbeing programme, they soughtfeedback and introduced componentsspecifically requested by employees. Theyallowed employees to choose the issues thatmost affected them.

Business benefits:

• Turnover rates at M&S have improvedsince the launch of its wellbeing websitewww.planAhealth.com, down to a low of0.50% in February 2013.

• Sickness absence fell 7% in one monthfollowing the site’s re-launch.

• There was an 18% reduction in referrals tooccupational health for musculoskeletalabsence following the introduction of thephysiotherapy helpline.

Wellbeing benefits:

• M&S has seen over 13,000 employees useits wellbeing website.

• Over 10,500 employees have nowundertaken a wellbeing pledge to improvetheir health.

• 1,088 employees joined the weight-losschallenge. 4 metric tonnes of weight werelost while increasing staff engagement.

• 500 staff participated in the 24-hourcycling endurance challenge, raising over£1m for charity.

Source: www.bitc.org.uk

CASE STUDY

17

HEALTH & WELLBEING

Corporate social responsibilitySome of this work has begun already – albeit led,at this stage, by charitable organisation Business inthe Community (BITC) as opposed to Government.

Earlier this year, BITC launched the first everbenchmark of FTSE 100 organisations on theirpublic reporting of employee engagement andwellbeing. The benchmark was developed inresponse to research showing a positive linkbetween strong people management andorganisational performance, with FTSE 100companies that have robust arrangements forreporting on employee engagement andwellbeing outperforming the rest of the FTSE100 by 10%, according to statistics from BITC.The benchmark was also launched in responseto investor demands for a standardisedmeasurement of employee management thatcould inform their investment decisions.

BITC WorkwellBITC is a firm believer in the benefits of taking astrategic, proactive approach to wellness andengagement and provides practical support tohelp businesses take action. One company thatis reaping the rewards of the charity’s ‘Workwell’

model is Marks & Spencer, which recentlyreceived the winning accolade in theEngagement and Wellbeing category of the BITCResponsible Business Awards 2013. [Please referto the case study on page 17].

Plan aheadThere are many things that all shapes and sizesof company can do to help improve employee

wellness and, at the same time, measure success– and all without breaking the bank. Hopefullythe ideas provided in the boxes included as partof this article will provide some initial food forthought but the question remains: where canbusy HR representatives find the time? This iswhere PSHPC can help. The consultancy will notonly work with you to create a 12-month planthat is exclusive to your business, but will alsoensure it is successfully implemented by drawingon the help of insurers, sourcing third partyexpertise where necessary and helping to createengaging communications.

Finally, it’s worth noting that although thisarticle includes a very comprehensive selectionof activity ideas, it’s advisable to choose just asmall number and focus on implementing themwell in order to avoid overwhelming employeesand losing their interest. Choose activities thateither fit with the company’s chosen charity, orthat focus on areas where there is a knownproblem within the workforce, such as obesity,alcoholism or lack of exercise. e

Beate O’Neil is Head of Wellness Consultingat PSHPC

A new independentoccupational healthadvisory service isexpected to be inoperation by the

end of 2014”

“HEALTH & WELLBEING

• Host the office Christmas party on aFriday so that employees can recover intheir own time.

• Offer sensible drinking advice to employees.The NHS Change4Life website provides lotsof useful advice plus a drinks checker. Go tohttp://www.nhs.uk/Change4Life/Pages/drink-less-alcohol.aspx

• Set boundaries for behaviour expectedthroughout the festive season and make itclear that hangover sick days are notcompany policy.

• Temper the above with a little festive

different sporting activities to be completedthroughout December.

• Lightly remind employees what Christmasis all about: offer staff time off to help outa local charity – even if it’s just an hourhere and there at a charity shop or

homeless shelter.• Ask for volunteers to join

a Christmas choir and offercarol singing to localchildren’s centres,hospitals and old folkshomes.

cheer too! Perhaps access to shoppingdiscount vouchers for all staff; or free alca-seltzer; encourage staff to bring and sharefestive food stuffs (ideally fruit of course…but cakes might be more of a winner!);maybe even time off for Christmasshopping to those employees who makeit into work the day after theoffice party.

• Put in place a fun,competitive activity suchas a ’12 days of Christmas’sporting challenge, with 12

TIPS TO HELP KEEP YOUR EMPLOYEES IN WORK & OUT OF TROUBLE DURING THE FESTIVE SEASON!

MONTH

Jan 2014

Feb 2014

March 2014

April 2014

May 2014

ADDITIONAL INFO

1. Free fitness testing followed by the introduction of fun fitness challenges that willencourage employees to exercise throughout January and beyond, such as a sponsoredwalking challenge – Climb Mount Everest – with employees logging distances coveredeach week until they reach the equivalent of an Everest climb. Fitness testing again sixweeks later to keep tab on achievements.2. Communicate the financial and health benefits of stopping smoking.

3. Reward the biggest ‘losers’ with money for pounds lost.4. Information and guidance on a whole host of relationship issues.5. Communicate simple guidelines to help staff make small changes for the better in 2014

1. Information and advice on keeping your heart healthy, whatever your age. Top 10 tipson keeping fit and eating fit.2. A series of fitness challenges for all ages and levels of fitness. The winning ‘Harts’ willenjoy a selection of classic DVDs including the infamous Hart to Hart episodes…3. Hints and tips on how to increase self-esteem4. Try a new therapy month – a discount offered on a range of massages and holistictherapies.

1. ‘Spot the signs’ focused information and advice

2. Establish a quit smoking clinic for staff.

3. Endurance challenge that can be completed either outdoors or on a running machine.Longest & fastest sprint wins!

1. Immunology focused employee communications and, for larger corporates, perhapsbring an allergy specialist onsite to answer questions.2. Everyday life puts a strain on muscles, joints and bones: communicate hints and tipson how to keep the body running smoothly.

1. Follow the ‘Let’s get physical’ campaign run by the Mental Health Foundation.

2. Get hold of the activities toolkit from the charity Living Streets.3. Partner with a sports clothing brand to offer staff a sports clothing and fitting day.

ACTIVITY

1. Commit to get fit!

2. National Non-smoking week(19 – 25 Jan)3. Pounds for pounds4. Relationships matter5. New year, new start 2014

1. National Heart Month(British Heart Foundation)2. Valentine’s challenge – ‘Hart to Hart’3. Taking care of No. 14. And relax…

1. Prostate & ovarian cancerawareness month2. National no smoking day(Wed 12th March)3. Mad March Hare FitnessChallenge

1. Allergy awareness week(28th April – 4th May)2. Top to toe health

1. Mental health week (12th – 18th May)2. Walk to work month3. Sports clothing promotions

HEALTH & WELLBEING – A 12 MONTH PLAN

1918

MONTH

June 2014

July 2014

August 2014

September 2014

October 2014

November 2014

December 2014

ADDITIONAL INFO

1. Superstar challenge: A range of workouts that can be done during lunch hour,intended to challenge staff to the max.

2. Communications to help promote mental wellbeing and help-seeking in men.

3. Communicate the need and what’s involved. If large enough site, partner with GiveBlood UK to bring a mobile blood donor vehicle onsite.

1. Utilise Mend communications to raise awareness around the dangers of being abovea healthy weight during childhood.

1. Summer fun events in your local park – could be anything from Tai Chi lessons tosoft ball championships.

2. Distribute fact sheets on the need of adequate hydration and the common signs ofdehydration.

1. Consider introducing an in-house newsletter full of staff success stories – moneyraised for charity, participation in any events that improve and encourage wellbeing.Also use as an employee benefit communications medium.

1. Communicate the benefits of good sleep & how to achieve this goal.

2. Free basic biometric testing for all staff, followed by advice on simple and easy waysto improve fitness levels. Carry out follow-up tests a few weeks/ months later.

1. Bring the experts onsite to provide gait analysis / set up a lunch hour running club /encourage participation in national fun runs and sponsored events.

2. Advice and help to avoid unnecessary aches & pains whilst doing normal daily activities.

1. Refer to hints and tips included in the box on page 18 of this article.

ACTIVITY

1. British Heart Week (7th – 15th June)

2. Men’s Health Week (9th – 15th June)

3. World Blood donor day (Sat 14th June)

1. National childhood obesityweek (7th – 13th July)

1. Play in the park

2. Focus on: Hydration

1. Staff newsletter

1. Focus on: Sleep

2. Achieve your fitness goals

1. Run for fitness & fun

2. Focus on: Everyday aches & pains

1. Keeping fit and well duringthe festive season

20

In a significant decision, the EmploymentAppeal Tribunal (EAT) has ruled thatWoolworths' employees were entitled to be

collectively consulted under UK collectiveredundancy legislation - even where theyworked in stores where fewer than 20employees were to be made redundant. TheEAT held that the words "at one establishment"in UK legislation should be "disregarded" onthe basis that they are incompatible with the

underlying EU Directive. The EAT has given the Government permission to appeal this decision.

-Subject to the outcome of the appeal, this isa significant change in the law and existingpractice. It now means that where at least 20employees in a single business are to be maderedundant, their place of work will be irrelevantfor the purposes of engaging the collectiveconsultation obligations.

A similar issue arose before the NorthernIreland Industrial Tribunal in a case that pre-datesthe Woolworths' decision. Individuals in manydifferent stores were made redundant and theTribunal considered whether the duty tocollectively consult was triggered in relation tothose employees working in stores where fewerthan 20 employees were being made redundant.The Tribunal has referred the matter to the Courtof Justice of the European Union (CJEU), seekingclarification on the meaning of “establishment”and whether the 20-employee threshold appliesto individuals employed at each particular storeor across the entire organisation.

The outcome of these two cases will go a longway towards clarifying this currently unsettledarea of law. e

Crowley Woodford is an Employment Partner at Ashurst LLP

A recent ruling – currently pending appeal – is set to add to the cost and complexity ofredundancy exercises, says Crowley Woodford

OUR VIEW

The CJEU's response and the appeal in theWoolworths' case will be eagerly awaited to provide clarity on this tricky and fundamental question. Pendingthis, employers planning redundancyprogrammes should remain on alert.

If the CJEU’S response and theWoolworths' appeal hold that the words “at one establishment” should bedisregarded, this will have importantconsequences for employers dependentupon how the judgements are formulated(context may be important as both of theabove cases involve large scale storeclosures where the companies were in administration). Employers wouldseemingly have to collectively consult ifthey intend to make 20 or moreredundancies across their business,regardless of where those individuals arebased and how many redundancies areaffected in each location. This will clearlyadd to the cost and complexity of suchexercises, with each redundancy situationrequiring a greater degree of analysis.

CASE LAW

21

Taking on the ‘establishment’

The economic impact of workplaceabsenteeism varies, but the Confederation ofBritish Industry’s (CBI’s) latest Absence Surveystates that the annual cost of absence to the UKeconomy currently stands at around £17bn*[3].

Employer supportWith Old Man Winter bearing down, it’s worthlooking at what employers can do to minimisesickness absence and keep employees as happyand looked after as possible.

Firstly, it’s worth taking a look at employeeterms and conditions. Introducing flexibleworking can be key to supporting employees’health and wellbeing throughout the year, butparticularly during the winter months whengetting into work can sometimes present aproblem. Other important measures include jobdesign and skills analysis, coaching andmentoring. This helps place people in the rightjob, which is essential to mental health.Mentoring and other support are often crucialto reducing stress.

Any employer with a group incomeprotection (GIP) policy in place can rest assuredthat support is at hand for both employer andemployee, which, for those without GIP in place,possibly still remains an unknown.

Many employers will argue that GIPrepresents an expensive way of providing asalary for those who indeed give little back toan organisation once they are accepted as aclaimant.

This may have been true a few years agowhen such policies did little more. However,times have changed and of those insurers still inthe market, few would argue that the primaryfocus of a GIP policy has now shifted.

In addition to covering the bulk cost of anindividual’s salary during periods of long-termabsence, policies now include a range of absenceprevention and rehabilitation services. In the

case of support for mental illness, telephone andface-to-face counselling is provided, includingaccess to experts in cognitive behaviouraltherapy. This support goes far beyond a free andslightly restrictive EAP service and in mostcircumstances will provide extensive face-to-face counselling.

Vocational rehabilitative interventions arealso included as part of many GIP policies tohelp with musculoskeletal conditions, amongstother things.

In the case of skiing injuries, knee sprains arecommon. The natural course of a typical musclesprain is that 50% of people will be symptomfree at 6 weeks and 90% at 12 weeks. Provideaccess to a course of physiotherapy within thefirst few days of onset – and many of this groupwill feel confident and able to return to workafter one to two weeks.

This again is likely to be available andfurthermore organised by your GIP insurer.

Insurer supportThe key to an effective use of a GIP scheme isto engage with your insurer, usually via yourintermediary, as early as possible. Insurers willhelp in end-to-end management of the majorityof absences given the relevant opportunity. Thiswill ensure that an absentee returns to work asquickly as possible and, furthermore will supportthe employer, reducing the time they need todedicate to this area. It should also reduce theamount being claimed under any privatemedical insurance policy in force, hence creatingfurther savings longer term.

Cost benefitsThe cost of GIP will vary according to thedemographics and other benefits in place withina company. But, as a guideline, cover can startfrom around £150 per employee per annum fora basic benefit of £3,000 a year – up to around£400 per employee per annum for a benefit of80% of salary.

Contrast this with the fact that employeesnow take, on average, almost two weeks a yearsickness absence at a cost to business of around£700 a week, according to the CBI, and the casefor GIP seems abundantly clear.

Why not ask PSHPC how you could benefitfrom the implementation of a GIP scheme. Wewill help you understand how the policies workand what the likely return on investment couldbe for your organisation allowing for currentabsence trends and benefit spend. e

Richard Davey is Head of CommercialDevelopment at PSHPC

Sources: *[1] The Royal Society for the Prevention ofAccidents*[2] www.SAD.org.uk*[3] CBI Absence Survey, May 2012

With more reasons for employee illness and injuries during the bleak winter months,it’s worth focusing on ways to keep employees safe and well, says Richard Davey

22 23

Incidences of mentalillness can also peak

during the dark and gloomy winter

months”“There may be

trouble ahead...

In addition to icy roads and shovel-relatedinjuries…other hazards lurk in each winterstorm. These hazards, however, are easily

managed by having a plan in place. Businessesneed to be mindful of the impact of the cost ofsickness absence, but particularly so duringwinter.

For example, did you know that around10,000 British skiers*[1] and snowboarders visithospitals each winter on their return fromholiday with injuries ranging from concussionand broken bones to torn ligaments and frostbite. Incidences of mental illness can also peakduring the dark and gloomy winter months. It isthought that Seasonal Affective Disorder (SAD)– also known as winter depression - now affectsmore than 2 million people in the UK*[2].

Musculoskeletal disorders and mental illnessrepresent the most common health relatedreasons for workplace absence. And althoughthe evidence is currently lacking, it makes sense– for the reasons highlighted above - that theseissues should become more prevalent during thewinter months.

GROUP INCOME PROTECTION

people adopt a ‘new year, new start’ attitude tomany aspects of their lives, including work.

Ensuring employees understand the totalvalue of their benefits package can become apowerful employee retention tool. Total rewardstatements represent the ideal communicationsmedium and they needn’t be costly or onerousto put together – in fact, a base-level portal,such as that designed by PSHPC – will do all thework for you. (Please refer to the box includedas part of this article for further information.) e

Richard Davey is Head of CommercialDevelopment at PSHPC

Totalreward

Meanwhile, as2014

approaches,many

employers willbe mindful of the

fact that they areat risk of losing

staff during the firstfew months of the

new year as many

24

The UK economy may be showing signsof recovery, according to officialstatements, but it’s safe to say that the

majority of employers and employees are stillfeeling the pinch. At times like this, staffretention is ever more paramount, but with payrises thin on the ground and budgets foremployee benefits taking a beating – or, inmany cases, totally non-existent - what cancompanies do to help kick-start the feel-goodfactor as we enter the New Year?

Providing your staff access to a voluntarybenefits package could offer one of theanswers. Such schemes – which can include avast array of benefits from dental insuranceand optical care to pet insurance, season tickettravel loans and will writing - enable employersto offer staff something extra at little or noadditional cost to the organisation. And thebenefits, in terms of employee engagement,can be substantial.

Rise in popularityAccording to Employee Benefits magazine’s2013 Benefits research, there has been asignificant rise in the proportion of respondents

that offer employee benefits on a voluntarybasis to all staff with the figure now standingat 79% - a rise of 27 percentage points overthe six years since the research began.

Increasingly, employers are seeing voluntarybenefits as a valuable part of their employeebenefit mix. This might have a lot to do withthe fact that some advisers are now able tooffer simple online portals that allow staff tosee all their benefits, be they company paid orvoluntary. The cost of these portals hasplummeted in recent years and initial outlaynow stands at literally a few pounds peremployee.

Additionally, when you consider that manyvoluntary benefits can be delivered tax andNational Insurance (NI) contribution-freeunder a salary sacrifice arrangement – i.e.childcare vouchers, bikes for work and work-related training – the many-faceted appeal ofvoluntary schemes becomes clear.

Historically, companies focused on benefitsthey financed but as the recession still takes itstoll any kind of discounts are increasinglyappreciated by staff at all levels. One of themost popular benefits offered on an entirely

voluntary basis is retail or leisurediscounts – this can be anything from adiscount off a new Rolex at Christmasfor a senior executive to luncheonvouchers or 5%-10% off the weeklygrocery shopping for the entireworkforce. The latter can really help todrive employee engagement with staffpotentially accessing the benefitsavailable on a daily basis.

Another highly regarded voluntarybenefit is dental insurance. This isgenerally available as either acomprehensive scheme - with coverlimits for all aspects of treatments andservices, from routine examinations torestorative treatment - or a cheaperoption, which includescover limits on a listof the most commontreatments and services.

Private medical insurance for dependants isalso still a popular choice. This typicallyincludes cover for consultations, diagnostictests and treatments whether as an inpatientor outpatient.

Benefit %age of employers offering

Buy or sell some holiday 27%Dental insurance 23%Critical illness insurance for employee 21%Private medical insurance 18%for partners & dependants

Critical illness insurance 18%for partners & dependants

Health/hospital cash plan for employee 14%Health/hospital cash plan 14%for partners & dependants

Health screening 14%Travel insurance 14%Private medical insurance for employee 13%

Source: The Benefits Research 2013, Employee Benefits, 2013

TOP 10 BENEFITS TO INCLUDE INYOUR SCHEME

VOLUNTARY BENEFITS

Thinking about leaving?Not me...

Don’t let a minor detail like an absence of a budget stand in the way of your employee benefits ambitions, says Richard Davey. Especially when you consider

the rewards in terms of employee engagement and retention

The cost of these portals hasplummeted in recent years and initialoutlay now stands at literally a few

pounds per employee”“Ask PSHPCFor those companies who wish to reap theemployee engagement and retention relatedbenefits of a total reward and Flex system butdon’t have the requisite budget, look no furtherthan PSHPC. We have designed a cost effectivestandalone portal, which acts as a focal pointfor a company’s entire benefits package andincludes the following features:- Benefits communication portal –

educating employees on the benefits theycurrently receive and those available forthem to purchase. The system shows totalreward value.

- Company guides – load all your HR policieshere to help your employees learn moreabout working for you.

- A documents library – quick and easy accessto all policy documentation.

- Pension communications – enablingemployees to learn more about the currentand potential future value of their pensionpot.

- HR portal – self-service benefitsadministration system.

- Financial education – easy to access adviceand support from The Money Advice Service.

Ask GladisEarlier this year PSHPC launched Gladis – asuper-intelligent, self-serve platform that holdsaccurate membership data and reduces yourcompany’s risk & cost of managing protectioninsurances.

Gladis, which is provided free-of-charge toPSHPC clients, has many unique featuresincluding:- Membership checker – Gladis checks

against your scheme rules to determinewhether cover can be put in place and if anyunderwriting is required. You will alwaysknow what cover is in place for all of yourmembers.

- Cost centre analysis – Gladis allows clientsto automatically allocate premium spend bycost centers and subsidiaries. What’s more, with Gladis all of the data is

stored in a Flex environment so even if you arenot ready, willing, or wanting to implementFlex right now, Gladis provides the foundationfor you to do so if and when required.

LOOKING FOR BENEFITS IN THE ABSENCE OF A BUDGET?

25

Take heed of imminentchanges to the lifetimeallowance as they might

necessitate a completeoverhaul of your group

pension and deathbenefit

arrangements,advisesRichardDavey

The ever-decreasinglifetime

allowance is set to furtherpenalise manypension schememembers whofind themselves‘over the limit’

with those opting to receive

lump sum pensionbenefits – or high

earners with life coverin excess of the earnings

cap – potentially facing ahefty 55% tax charge on payout

of benefits.The Chancellor George Osborne

announced in December last year that thelifetime allowance (LTA) - the maximum

amount of pension saving an individual can

the changes to the LTA should be at the

forefront of their [high earners’] mindswhen considering taxplanning upon death”

Over the limit?

26

“

27

LIFETIME ALLOWANCE

earners who require greater levels of life coverto be governed by a trust separate to – andtherefore not governed by the rules of - thepension scheme. However, this route hasn’tbeen well worn in the past due to the fact thatHMRC states that an excepted group lifescheme cannot be used for the purposes of taxavoidance, which, without doubt, is one of thereasons why these policies are taken out in thefirst place. Consequently, PSHPC considers thiscurrently a loophole that HMRC will eventuallyclose down although how far into the futureremains to be seen.

That said, for now it remains an option opento companies.

In deciding how best to protect thosemembers who may be affected by the LTA,companies can choose to be either proactiveor reactive. The proactive option involvesconsulting with every member of the schemefirst and then deciding on the mostappropriate route. But considering thatemployers and their consultants are notqualified to give individual advice toemployees, any member affected by the LTAwould have to seek individual advice beforereturning a decision to their employer. This isobviously, therefore, a big exercise.

The alternative option for clients is to bereactive to individual needs – a route thatPSHPC believes to be perfectly acceptable. Thebox opposite outlines the four routes – fallingwithin either the proactive or reactive categories- available to most companies.

Finally, it’s worth noting that some employersare offering higher salaries in place of pensionpots to help counteract the issues highlighted inthis article. Contact PSHPC for moreinformation. e

Richard Davey is Head of CommercialDevelopment at PSHPC

OPTIONS FOR EMPLOYERS WHERE GROUP LIFE BENEFITS ARE EXPECTED TO BREACH THE LIFETIME ALLOWANCE

1. Do Nothing2. Do nothing but make it very clear

in member communications anddocumentation that any claim paid out ofthe current scheme will count towardstheir lifetime allowance and suggest thatthey seek individual advice.

3. Set up an Excepted policy for any member

earning over the current notional earningscap, which is approximately £141,000,thereby splitting the schemes into oneRegistered scheme and one Exceptedscheme.

4. Set up an Excepted policy for all benefitsand wait and see what HMRC do about thisover time.

build up over their life that benefits from taxrelief - will fall from its current level of £1.5mto £1.25m from 6 April 2014.

The charge is paid on any excess over the LTAlimit and it applies to all pension schemes, eventhose into which only the employer makescontributions. The rate depends on how theamount over the LTA is paid: either 55% if paidas a lump sum; or 25% in the case of regularpension payments.

Clearly, the implications for group lifebenefits, which are paid as a lump sum, areconsiderable and it is on this area that we focusfor the purposes of this particular article.

Registered vs ExceptedMost life schemes in the UK are written on a‘Registered’ basis (otherwise known as‘Approved’ schemes pre A Day). These aregoverned by the rules of the pension scheme towhich they are linked, making them taxefficient up to a certain level. In the event of aclaim under a Registered scheme, the proceedsof the death benefit are crystallised along withother death benefits, such as the return ofpension contributions, and count towards themembers LTA. In the case of high earners whohave chosen to pay for an increased level of lifecover the LTA can very easily be breached,

resulting in taxable charges. For this group inparticular, the changes to the LTA should be atthe forefront of their minds when consideringtax planning upon death.

One way of ensuring that life assurancebenefit is excluded from the LTA is to set up afully ‘Excepted’ scheme. Similarly to the pre ADay ‘Unapproved’ schemes, this allows high

pathways to be mandatory, no GP referralrequired with £100 excess waived.

• Stronger governance around late entrantsagreed.

• Modification of literature/communications toensure benefits and rules are clear. HR inputand company’s reward branding to beincorporated.

• Setting of an accurate claims fund - PSHPCcalculated a claims fund in line with theaverage received from the market.

• PSHPC agreed funding with the proposedadministrator resulting in c£200,000reduction on last year’s notional contribution.

• With a benefit cap and significant surplus inTrust account, PSHPC recommended goingwithout stop loss, saving a further c£15,000.

• Revised P11d agreed - a 20% reduction onthe current rate - discouraging opt outs andmaintaining a good risk. Justification ofaccurate rate calculation documented.

• A strategy to be agreed with trustees forrunning down the Trust account surplus to asmaller buffer with tighter control on cash flow.

PSHPC’s audit and report enabled the client tounravel a costly and complex legacy arrangement,which had proven difficult to tackle. The clientsubsequently appointed PSHPC as their Trustadvisors.

The consultancy delivered an awarenesssession to all trustees on the operation of aHealth Trust and on the roles and responsibilitiesof the trustees.

PSHPC now chairs and minutes trusteemeetings and prepares meeting packs etc.

Overall, the costs were reduced, internaladministration was streamlined, improvedgovernance was introduced and the client wasfar more in control of the arrangement. e

Soraya Chamberlain is Head of HealthcareConsulting at PSHPC

The arrangement was complex and clearly difficult

to manage”“

29

• The complex arrangement, steeped in legacy,required very regular trustee meetings andsignificant management time.

• The administrator had been unable to build apositive direct relationship with the client.

Recommendations • A Trust administrator was proposed with clear

responsibilities between Health Trustadministration, wellness and occupationalhealth services.

• All suppliers including OH and EAP were toagree integration protocols and provideeffective management information

• Tighter control of the Trust administration andclarity in benefit design was advised.

• A clearer, more comprehensive, cancer benefitwas agreed with case management in placeand supported by increased NHS cash benefitif appropriate. A benefit cap limit was retainedto limit liability.

• Musculoskeletal and mental health care

HEALTHCARE TRUSTS

Healthcare Trusts should, in theory, represent a flexible and costeffective alternative to traditional private medical insurance formany companies, writes Soraya Chamberlain. But without theright structure and management in place they can become amajor headache for HR, as this case study shows. Fortunately,as with most things in life, where there’s a will there’s a way…

PSHPC was invited by a client to carry outan independent governance audit of theirlong-standing Health Trust arrangement.

They had concerns over the management of theTrust following a disputed high value claim andalso the amount of management time involvedfor the trustees in running the Health Trust.Following an initial fact find meeting, a numberof significant concerns were identified, whichwarranted further investigation.

Key Findings • The arrangement wascomplex and clearly difficult tomanage. A number of claims

payments were made outside of theagreed protocols and claimants were

also confused about the cover availableand the processes in place.

• Some ineligible services were being fundedunder the Trust.

• A very restrictive cancer benefit presentedchallenges to case manage, was the cause ofa potential legal dispute and did not ‘fit’ withthe company’s paternalistic culture.

• PSHPC’s risk calculations highlighted that theaverage unit risk cost had fallen since 2010.The fund and the employee P11d rates hadbeen set too high in the last few years,resulting in members being over-taxed.

• There was an excessive surplus in the Trust,which had built up over a few years, partly asa result of the P11d rate not being altered toreflect an improving risk.

• The plan guide and communications weremisleading and did not provide sufficientclarity around the benefit limits applied. Thiscaused confusion for both beneficiaries and

The Trust Troubleshooter

WHAT IS A HEALTHCARE TRUST?

A healthcare trust is a method of providingself-funded medical cover to staff. Theywere created in the early 1980s to givelarge employers greater flexibility andcontrol over the cost and structure of theirhealthcare benefits. Premiums, which can befunded by employers and / or employees,are paid into the trust and based on theestimated value of an employer’s annualclaims. Trusts are independently run and aremanaged by an administrator.

WHAT ARE THE LEGALIMPLICATIONS?

An approved Trust Deed must be in placeand the appropriate governance carried out.Often, an external legal adviser is used toensure the Trust complies with currentHMRC guidelines and recommendations.

WHAT ARE THE TAX ISSUES?Healthcare trusts are not classified asinsurance schemes, so are not subject toinsurance premium tax (IPT). Benefits paidthrough a Health Trust are still classed as aP11d benefit for employees.

28

the administrator. Management informationcame from two sources in different formatsand was difficult to interpret.

• The trustees were about to purchase stop lossinsurance from an underwriter, without fullyunderstanding the need for such protection.

• Full medical underwriting applied to lateentrants but there weren’t any managementprocesses in place.

• Inconsistencies were identified with regardsto medical confidentiality and patientconsent between the administrator andoccupational health provider.

GIP benefit design. Without adjusting thepercentage of salary covered, this wouldobviously lead to an increase in premium butany increase might be minimal plus there areways to re-design the policy to help mitigatethis problem.

“GIP policies are flexible and the benefitcalculation formula can usually be revisedwithout any difficulty,” comments Nick Homer,Group Risk Proposition Manager at ZurichCorporate Risk. “The impact of the interactionof state benefit is far more significant for thoseemployees on lower salaries.

“There are arguments for simply retaining thefixed percentage of salary already in place evenif state benefits are de-linked as the cost impactmight be minimal, yet it would mean a lot toemployees with regards to benefit certainty.

“If cost is a concern, employers could considerreducing the headline percentage of salary with the aim of, again, providing certainty to employers in terms of the cover they have in place.” e

Hayley Goodwin is Senior Consultant atPSHPC

don’t return to work and the assessment goesahead – and they are deemed eligible –payments would be backdated.

This obviously goes completely against thegrain of the ESA’s intended purpose – to getpeople back to some kind of purposeful work assoon as physically possible.

What’s the answer?As mentioned earlier, PSHPC encourages clientsto consider removing the ESA offset from their

State & privatenot always the perfect pairing

30

Almost six years on from the start of the Government’s Welfare Reform initiative and benefit claimants are finding themselves seriously out of pocket.

This is adding much greater weight to the argument for removing state benefit linkeddeductions from group income protection design, writes Hayley Goodwin

benefit structure is a percentage of salary, lessthe value of the single person’s ESA and WRACpayments to which they might be entitled.

The lowdownSo, taking the current UK national average salaryof £26,500 as an example, an individual receivingGIP of 75% salary would potentially be entitledto payouts totaling £19,875 if they were off workfor a year, less £5,208 in total ESA and WRACentitlement over the same period. This amount isdeducted from the GIP benefit regardless ofwhether the individual physically receives the ESApayments from the Government.

The problems surrounding the state benefitare three-fold and may be summarised asfollows:- The main issue is that the benefit formula put

in place by the employer assumes thatemployees will be eligible for ESA benefits,which is less likely to be the case because thecriteria is now based on ability to work ratherthan inability to perform own job.

- Even if the employee is entitled to ESA andWRAC, it becomes means tested after 12months, so will cease in the case of thosereceiving continuation of salary via a GIParrangement. However, some employees maybe able to reapply for ESA after 13 weeksbecause they have continued to pay NI as aresult of their continuation of salary (but notif the GIP benefit has been paid directly to theemployee rather than via PAYE).

- Delays in the process mean that eligibleclaimants aren’t receiving their full benefitentitlement at the intended point and can’tobtain backdated payments if they recover. On the latter point, this has led to the

somewhat bizarre situation where if anassessment is months late and, in the meantime,the claimant returns to work, they wouldn’treceive any backdated benefits: whereas if they

An increasing number of employees whoare long-term absent due to illness ordisability are missing out on state

benefits to which they should be entitled thanksto Government tardiness in carrying outassessments for Employment and SupportAllowance (ESA). Since 2008, when the WelfareReform initiative was introduced, PSHPC hasheld that clients should consider de-linking theirgroup income protection (GIP) benefits fromESA. The serious delays now being faced bymany claimants are only serving to add furtherstrength to this position.

Paul Avis, Marketing Director of Canada LifeGroup Insurance, agrees: “Wherever possibleemployers should de-link the state benefits fromincome protection to ensure employees havebenefit certainty. Otherwise their perceivedincome may be reduced if they do not qualifyfor ESA and WRAC [Work Related ActivityComponent – refer to the box opposite].”

Under traditional benefit designs, GIP is paidin respect of those employees who are off workdue to long-term illness or injury. A common

PSHPC encouragesclients to considerremoving the ESA

offset from their GIPbenefit design”“

Employment and Support Allowance (ESA),which was introduced in October 2008,effectively replaced incapacity benefit, severedisablement allowance and income support.The new benefit is designed to be more alignedwith Jobseekers’ Allowance.

Individuals entitled to ESA are paid a benefitfor the first 13 weeks of absence from work ata rate of up to £71.70 per week (up to £56.80a week for those under the age of 25), at whichstage they must be assessed to determinewhich of two groups they should enter – thisassessment and grouping determines their

subsequent payments. The two groups may besummarised as follows:- Work-related activity group: this is for those

individuals who are deemed able to do somekind of work. ESA may be paid for amaximum period of one year to thoseplaced in this group.

- Support group: claimants are placed in thisgroup when their illness or disabilityseverely limits what they can do.For more information, talk to your PSHPC

consultant or go to www.gov.uk/employment-support-allowance/overview

EMPLOYMENT & SUPPORT ALLOWANCE: IN A NUTSHELL

31

WELFARE REFORM

change: 13 or more whole weeks if the policycovers up to 499 members, or four or morewhole weeks for schemes with 500 or morepeople. In both cases, the total number of weeksof absence represents the key factor, whetherthey are consecutive or otherwise. Employersshould have the information on file, as anyabsence of more than seven days now requiresthe employee to provide a doctor’s note.

By providing this information at the quotestage, it is possible to offer terms that willfacilitate everybody’s needs when cover starts,regardless of whether or not they are at work onthat date. If a claim subsequently arises, there isno need for the insurer to check – or theemployer to worry – whether the memberconcerned was absent through sickness.

Remove uncertaintyThis approach is less labour intensive incomparison to medically underwriting all themembers affected. That said, it clearly requiresmore information than would be the case if anAAW declaration operated, as the nature of anyillness and dates absent are required. However,the small extra effort required in supplying thisinformation is more than offset by the securityafforded to the client in knowing that a fulldisclosure was provided. What’s more, theinsurer had accepted this information andconfirmed cover on that basis.

Insurance is all about removing uncertaintyand reducing risk for policyholders. AAWconditions have a place but they need to be morecarefully aligned to employer requirements. Anyinsurance structure that leaves risk with the partyin the value chain least able to carry it is flawed.Independent advisers are best placed to help takethe risk out of risk cover. e

Tom Bond, Scheme Underwriting Specialist, Ellipse

Problems in policingAAW conditions can be worded at differentstrength levels to be applied according to thesituation. It is at the insurer’s discretion todecide which wording to use in each set ofcircumstances. However, irrespective of thewording used, there isn’t usually any way ofchecking whether all the members are activelyat work on the date for which the conditionapplies. This has the potential to leave somemembers without cover and all parties – themember, their employer and adviser – obliviousto the problem. If a claim subsequently occursin respect of a member who failed to meet theterms of the AAW condition, the insurer maydecline it and the employer might be faced with an uninsured liability, which could besubstantial. However low the probability of this,it fails to meet the levels of contract certaintyto which insurers aspire.

Some doubt and confusion also reigns aroundthe terminology used in AAW conditions. Here’sa common definition:

“By ’actively at work’, we mean that anindividual is in active employment, mentally andphysically capable of performing all the duties

normally associated with their job, and workingnormally in terms of both hours and locationand is not doing so against medical advice.”

Changes in working patterns, facilitated byadvancements in technology, mean that a lot ofemployees have more freedom as to where andwhen they work. Many will work from home, ifnot all the time then at least some of it, so itbecomes very difficult to determine what‘normal location’ and ‘normal hours’ mean.

Simple solutionOne alternative would be to assess the healthand lifestyle of all members benefiting fromincreased or improved benefits. This wouldprovide a detailed picture of the health of themembers affected by the change and, given theadvances in online underwriting technology, itis no longer the long-winded process it mightseem. However, when small alterations are beingmade to a scheme, such as to a salary definitionor eligibility definition, it seems like asledgehammer to crack a nut.

Another solution, afforded by Ellipse, involvesasking the client to inform the provider aboutany members off sick for extended periodsduring the year prior to the effective date of the

Tread carefully

32

This has the potential toleave some memberswithout cover and allparties… oblivious to

the problem”“

33

GROUP LIFE

Policies that are meant to protect businesses and employeescan end up penalising if not structured carefully. Tom Bondprovides advice on how to counteract this problem

Actively At Work (AAW) requirements areoften applied by group life insurers toprotect themselves against the very real

possibility of undisclosed risks when the basis, oramount of, cover changes. Although designed tobring contract certainty, they can end up doingexactly the opposite – bringing the potential forsubstantial uninsured liabilities instead.

In simple terms, the AAW requirementdictates that a scheme member must be at theirnormal place of work and fulfilling theircontracted hours and duties on the date thatany change to cover takes effect.

The application of AAW conditions isdesigned to protect insurers against the risk ofbenefits being increased when the insuredknows of a significant additional risk to whichthe insurer is not privy. For example, anemployer could decide to increase the schemebenefit for all members with a view to providingone member suffering from a terminal illnesswith extra cover. Assuming the new benefit wasstill within the automatic acceptance limit, if noAAW condition were applied there would benothing to stop a valid claim for the increasedbenefit being made once that member had died.

34

THE PANEL

With thanks to all our contributors:

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Brush up on your photographic skills to be in with a chance of winning a one night stay for two ata choice of around 54 ‘Unusual Escape’ locations UK-wide: from Hobbit Huts to Eco Pods and one-

of-a-kind hotels. We want to see Engage going global, so snap yourself reading the magazine in the farthest corners of the world or

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to be in with a chance of winning this amazing prize and appearing in the magazine. Email subject header ‘EngagingPics Winter’. The winner will be notified by Friday 24th January 2014.

Paul AvisMarketing Director, Canada Life

Canada Life was formed in 1847and is one of the UK’s largestgroup risk insurers, providinginsurance for 21,000+ employersand covering more than 2.8million employees. Ourdifference lies in our industryknowledge and our experience offlex arrangements. Canada Life israted AA by Standard & Poor’sand has received recognition inthe industry for its propositionand, in particular, its marketleading service.

Tracey Ward Head of UK Sales & Marketing, Generali EmployeeBenefits

Generali Employee Benefits UKprovides a comprehensive rangeof group products and services,including life, income protection,flexible benefits and healthcare.The UK office gains from thefinancial strength of theworldwide Generali Group andits own extensive expertise inthe specialist area of employeebenefits. The Generali Group ispresent in more than 60countries with over 65 millionclients worldwide and 80,000employees.

Tom Bond SchemeUnderwritingSpecialist,Ellipse

Ellipse – whose ultimate parentis Munich Re – is an insurancecompany offering group life anddisability cover. Its services arebuilt around a secure website,enabling fast processing ofpolicies, accounts and memberunderwriting.

Nick HomerGroup RiskProposition Manager,Zurich Corporate Risk

In the UK, Zurich has twobusinesses dedicated tomeeting the employee benefitsneeds of corporate customers –Zurich Corporate Pensions and Zurich Corporate Risk. Foundedin 1872, Zurich is one of theworld's largest insurancegroups, with over 60,000employees serving customers inmore than 170 countries.

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WORK, REST & PLAY

Engaging picsWe’re going global... send us your shotsfrom around the world and we will beshowcasing the best snaps from ourreaders. Plus, be in with a chance ofwinning a most ‘unusual’ prize

Method- Cream butter and sugar, sift flour & baking powder.

- Beat whisked eggs into creamed mix with a little flour.

- Beat for 1 minute before mixing in rest of flour.

- Chop dates and flour lightly. Pour boiling water over

dates & mix in bicarbonate of soda & vanilla essence.

- Add this to the batter & mix well.

- Turn into buttered 400g loaf tin.

- Bake for approx 40 mins at 190°C.

For the toffee sauce: - Heat 75g soft brown sugar, 38g butter & 2 tablespoons

double cream.

- Simmer for 3 mins, pour over hot pudding and place

under grill until it bubbles.

We’d love to receive more of your

favourite recipes. Email them to

richard.davey@pshpc.com

In every issue we will be printinga selection of the best of ourreaders’ photos. We want you

to be a part of our magazine. Tag your photos with #engagingpics onInstagram and you might just seesome of your best photos published inthis section. e

35

READERS’ RECIPESMy Mum’s sticky toffee pudding

By Suzanne Clarkson, Editorial Consultant, Engage

Ingredients50g softened butter

150g granulated sugar

200g plain flour

1tsp baking powder

1 egg whisked

150g stoned dates

250ml boiling water

1 tsp bicarbonate soda

1 tsp vanilla essence

Punter Southall Health & Protection Consulting (PSHPC) is the trading name of Enrich Reward Limited (2248238) which is registered in England and Wales with its registered office at 11 The Strand, London, WC2N 5HR.

Enrich Reward Limited is authorised and regulated by the Financial Conduct Authority.