All articles by System Administrator – Page 51
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Group risk
Group risk is a blanket term for risk insurance products sold to employers on a group basis such as income protection (also known as permanent health insurance or PHI), critical illness, life assurance (also known as death-in-service benefit), and personal accident insurance.
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Disability income insurance
A type of health insurance that provides a periodic payment to replace income when the insured employee is unable to work as a result of illness, injury, or disease. Also known as income protection or permanent health insurance.
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Death-in-service benefits
Death in service benefits generally refers to one or more of the following:life assurancespouses' pensiondependants' pensionreturn of personal contributions, as provided by a pension scheme, on a member's death in service before retirement.
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Critical illness insurance
Critical illness cover pays a tax-free lump sum to an employee if they should suffer a critical or terminal illness, or have one of the surgical procedures (collectively known as the ‘critical illnesses’), covered by the policy. Different policies cover different critical illnesses, however, all cover cancer, heart attack and ...
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Accident insurance
A policy that will pay out an income or a lump sum in the event of disability, dismemberment or death of an employee, caused by an accident. Accident Insurance is not life assurance.
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Voluntary benefits - definitions - Communication
Employers can communicate details of their voluntary benefits plan through printed materials such as brochures or through secure websites which can be linked to a company intranet and enable staff to purchase goods online.Communication is a large hurdle for many companies to overcome, especially those with employees scattered across the ...
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Voluntary benefits - definitions - Salary sacrifice
Salary sacrifice refers to an employee agreeing to give up the right to receive a portion of their salary. This is used to provide a benefit, which is typically free of tax and National Insurance (NI) for employees. Employers can also save up to 12.8% on NI.Such arrangements on benefits ...
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Voluntary benefits - definitions -Tax-efficient benefits
These are typically included for employees to take advantage of in voluntary benefits schemes and are also offered through salary sacrifice.†Childcare vouchers, bike loans, mobile phones, car parking, health screening and work-related training are examples of tax-efficient benefits that may sit in a voluntary benefits programme.Childcare vouchers are a well-established ...
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Voluntary benefits - definitions - Discounted products
Providers of voluntary benefit programmes use their buying power to secure discounts on different products and services for companies to relay onto their staff.Typical examples offered through a voluntary benefits plan include: gym membership, retail vouchers, CDs, DVDs, travel insurance, holidays and travel, entrance to theme parks and other attractions, ...
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Share scheme - definition - Company Share Option Plan (also known as CSOP)
Staff can be granted options at a price not less than their market value at the date of the grant. The option to purchase shares exists for ten years, but cannot be exercised for the first three.The company has the power to select the employees and directors it wishes to ...
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Share scheme - definition - Share incentive plans (Sip)
In a share incentive plan (Sip) employees buy shares directly from their employer (known as partnership shares) that the employer can then match (matching shares).Employers can give their staff up to £3,000 worth of free shares per year, and staff can buy a further £1,500 of shares from their gross ...
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Share scheme - definition - Sharesave plans (also known as Save As You Earn or a Savings-related Share Option Scheme)
The sharesave plan gives employees the option to buy shares in the company at a future date at a price set at the time of joining the scheme.Employees that participate can save between £5 and £250 per month for a period of three, five or seven years. At the end ...
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Pensions - definitions - Stakeholder pension scheme
A stakeholder scheme is a low charge, contract-based, defined contribution pension. As well as a cap on charges, stakeholder schemes must accept a minimum contribution of just £20. Employees can stop, start, raise or lower their contributions in this type of scheme without penalty. The employee makes their own investment ...
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Pensions - definitions - Defined contribution scheme
A defined contribution scheme is built up through cash contributions from both the employer and the employee. The final fund employees stand to gain, however, is dependent on how much is contributed and on the stock market performance of their investment choices. This is unlike a defined benefit scheme where ...
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Pensions - definitions - Defined benefit scheme (DB)
Defined benefit is a pension scheme where the payout is based on an employee’s salary and length of service. The exact formula to work out the pension on retirement varies between schemes. There are several types of defined benefits schemes; the most common is a final salary scheme, while some ...
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Pay & bonuses - definitions - Base pay
This is the basic level of pay awarded to staff. It can be benchmarked against what other organisations pay for the same grade or job in the same region.Total reward statements allow employers to demonstrate to employees the total value of their base pay plus their benefits and can work ...
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Pay & bonuses - definitions - Performance-related pay
These link pay to a measure of individual, group or organisational performance. There are a wide variety of methods used including gain sharing, profit-related pay and straightforward bonuses, but all schemes assume the promise of pay will provide an incentive to greater performance.Salary can be set on the basis of ...
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Pay & bonuses - definitions - Equal pay
In the past, the fact that men have been paid more than women in the same role has been criticised. Equal pay for women has been long sought after and equal pay for equal work is an understanding that continues to make the headlines.The Equal Pay Act effectively means that ...
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Pay & bonuses - definitions - National Minimum wage
The minimum wage is a legal right covering all employees working in the United Kingdom above compulsory school leaving age. The rate is reviewed every year, and any increases take place in October. The rate varies depending on the age of the worker.The National Minimum Wage increased as of October ...
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Motivation - definitions - Flexible working arrangements
Offering flexible working arrangements for staff can also be hugely motivating by enabling them to achieve a better work-life balance.This can be as simple as allowing employees to start and finish an hour earlier or later, or include options such as part-time work, job shares, compressed hours, career breaks and ...