All articles by System Administrator – Page 49
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Pensions - definitions - Equity funds
Equity funds buy the shares of many different companies, thereby spreading the risk. Equities and equity funds produce good returns over long periods, although their short-term performance can be volatile and lead to big falls, which can be devastating if it happens just as a scheme member retires. The main ...
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Pensions - definitions - Default investment option
The option that defined contribution scheme members can make if they do not want to actively select their investments. These commonly contain lifestyle funds.
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Pensions - definitions - Contribution holiday
A period during which the contributions of employer and/or employee are suspended, generally when the pension fund is in surplus over acceptable levels. Applies to defined benefit pension schemes.
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Pensions - definitions - Contract-based pension
Both group personal pensions (GPP) and stakeholder arrangements are contract-based pensions because the employee has a direct ‘contract’ with the pensions provider. Despite the employer having probably selected the provider and paid contributions into the arrangement the employer has no contractual relationship with the pensions provider.
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Pensions - definitions - Company pension scheme
This is a scheme organised by an employer to provide pension benefits for their employees. Common types of pension schemes in the UK include: defined benefit (for example: final salary, career average) and defined contribution (for example: group personal pension, money purchase and stakeholder pensions). From 2012 a new scheme, ...
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Pensions - definitions - Cash funds
Cash funds are straightforward deposit accounts that pay interest. While the investment is safe because the face value of the investment will not fall, its real value will be eroded by inflation. Cash is usually used only when scheme members approach retirement but can also be useful to switch to ...
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Pensions - definitions - Additional voluntary contribution (AVC)
An additional voluntary contribution (AVC) is the extra amount an employee can pay into their company pension plan that is beyond the amount they have to contribute according to their pension scheme’s rules.
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Pensions - definitions - Bond funds (corporate bonds and gilts)
UK government bonds are known as gilts and company bonds are called corporate bonds. Either way they are loans where the borrower pays the holder interest and agrees to repay the loans at a specific date in the future. Bonds are traded like shares with values tending to rise when ...
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Pensions - definitions - Added years
Added years refers to when employees opt to buy additional years of service (under a pension scheme) in order to increase their final salary pension. This is because pension entitlement under a defined benefit pension is calculated by taking into account an employees salary and length of service.
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Pensions - definitions - Annuity
An annuity is a fixed amount of money paid each month or each year until a particular event (such as a death). It is a common way to pay a pension to someone who was a member of a defined contribution scheme. When an employee retires, their pension scheme can ...
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International benefits - definitions - International employee benefits trust
An employee benefits trust (EBT) is a discretionary trust for the benefit of employees. A trust is a legal arrangement by which one person owns assets on behalf of somebody else. An EBT can be run for pensions, share scheme, or employee insurances. See also multinational pooling and captives.
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International benefits - definitions - Relocation, international
Many employers who need to relocate employees to overseas offices hire the services of a professional relocation agency to help those employees acclimatise to their new location. This can include offering language and cultural lessons, searching for accommodation and schools (if the employee’s children are moving), selling the house in ...
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International benefits - definitions - Multinational pooling
Multinational pooling is when organisations which operate in more than one country leverage their size and buying power by grouping (or pooling) their risk insurances (such as life and medical insurance) with one insurance company in order to achieve economies of scale across borders.†By putting resources together, rather than having ...
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International benefits - definitions - International health insurance
UK employers posted abroad will need some form of health insurance. The type of cover will depend on which country (or countries) the employee is based in, how much they will be traveling for work, the level of risk, whether their family is accompanying them, and where they are likely ...
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International benefits - definitions - EMEA
EMEA stands for Europe, Middle East and Africa. In the context of benefits, it commonly describes the regions for which an EMEA benefits manager is responsible.
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International benefits - definitions - Captives
A captive is a wholly or part-owned, or rented enterprise designed to insure an employer's own risks. There are between 4,000 and 5,000 in existence worldwide.In theory, employers can cover any insurance benefit with a captive, including private medical, critical illness cover and life insurance. The potential advantages of using ...
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International benefits - definitions - Business travel insurance
All employees traveling for work need to be covered by business travel insurance. However, employers need to be aware that pre-existing health problems may not be covered by travel insurance, so will have to consider taking out international healthcare insurance.
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Public sector morale low
Morale at work is lowest in the public sector, where 40% of managers believe this is an issue within their organisation. This compares to 16% in the private sector and 6% among not-for-profit organisations, according to the Roffey Park Management agenda 2007. Bureaucracy was considered to be the main workplace ...
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Norwich Union Life loses Wilson
Norwich Union Life's head of reward Sandy Wilson has left the company. He is now looking for a senior reward role in the north of England. He would particularly like to work for a firm where the reward strategy can be revamped. "The challenge [would be] working with an organisation ...
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Financial Ombudsman Service puts the focus on flex
The Financial Ombudsmen Service (FOS) has relaunched its flexible benefits scheme in a bid to drive employee take up.The organisation, which first introduced flex in 2004, achieved take up of around 80% last year, but it believes that employees' awareness of some of the benefits is still not high enough.To ...