Corporate Financial Planning

Navigating the corporate pensions conundrum

Legal and social changes mean that workplace pensions have become increasingly important for companies and their staff.

McLay James work with businesses to provide the right solution for the owners, directors and employees in relation to their pension needs. Implemented correctly, a workplace pension is a hugely valuable staff benefit and can significantly enhance both recruitment and retention of employees.

Our role is to advise employers on the right structure of any pension offering. We can explain the cost implications of different funding options and match the employer’s requirement with the most suitable pension provider.

Where employers wish, we can offer advice to employees,  through their working life and in the run up to retirement. This helps ensure that employees fully appreciate the value of employer’s contributions and that every penny paid by the employer goes to providing the maximum benefits to staff. We can also help employers implement salary exchange options, giving additional National Insurance savings to both employee and employer.

Auto-enrolment *

The picture has become more complex over the past two years with the arrival of auto-enrolment legislation that will eventually require all employers to pay into pensions on behalf of their staff. Employers have no choice but to comply with these new rules.

McLay James has invested the time required to understand the complexities of the new world of workplace pensions. We have identified a range of potential solutions, both for those employers with existing pensions in place and for companies who are completely new to pensions.

We have also seen the potential pitfalls that can catch out the unwary employers, particularly those who leave planning for the pension until the last minute. Complying with the new rules may mean employers need to rethink payroll providers, probationary periods or employment contracts too.

Protecting yourself and your workforce

In an uncertain world, many businesses want to protect themselves and their staff against the financial impact of ill health or an untimely death.

McLay James have decades of experience in working with companies and are able to arrange competitive cover for employers who wish to offer insurance such as:

• Group Life Insurance and Death in Service cover
• Group Critical Illness cover
• Group Income Protection cover, providing either short or long term sick pay for those unable to work
• Corporate Private Medical Insurance

The cost of installing a scheme is often far less than an employer expects and cover is highly valued by workers. Group arrangements may also be a cost-effective way of getting insurance for senior employees who already have been diagnosed with medical conditions.

Putting the right insurance in place may help a business as much as it helps the staff. For example, private medical cover will ensure your workers are diagnosed and treated promptly, aiding a swift return to work. Many group income protection arrangements include occupational health services that can aid employees rehabilitation.

Protecting your senior staff

We can assist companies who want to protect the business against the financial impact if a director, partner or senior manager falls ill or dies.

Key person insurance will provide funds to the business to hire a temporary replacement or recruit a long term successor. Business and shareholder covers can make lump sums available to the remaining business owners to buy out a partnership interest or a shareholding. We can also help with the necessary trust and legal arrangements to ensure such cover delivers the maximum benefit.

* Auto enrolment is regulated by the Pensions Regulator