Final Salary / DB Schemes Review                  

Review your Group Final Salary arrangements and save Money and Legislative Hassle

 

• Have you got a Final Salary Pension scheme?

• If so, you are probably aware that Final Salary Schemes are:

  • very costly

  • legislatively a pain

  • come with huge potential liabilities for the Trustees

  • an administrative burden

  • most SMEs, and many large companies, have jettisoned them, or are doing so as quickly as possible

• But winding up a Final Salary Pension Scheme is normally not feasible

  • It generally costs a fortune to do

• So what is the solution?

  • You can close the scheme to new joiners - (Wind Up, not Close Down)

  • You can cease further accrual of benefits for existing members

  • Make the Final Salary Scheme 'paid up'

  • Change 'Paid Up' unbundled arrangements to bundled to reduce the cost and complexity

    • Please see the section DB Bundling

  • Set up a Group Money Purchase arrangement (GPP, Stakeholder or Group SIPP)

    • New joiners enter this scheme

    • This scheme can offer full or partial Flexible Benefits

  • Existing Final Salary Scheme members keep their current benefits but accrue future benefits in the new scheme

  • Offer the benefits of Salary Sacrifice to staff with their new Money Purchase arrangements

  • Arrange group seminars and data explaining how the new arrangements are more flexible and 'modern'

  • Offer staff full face-to-face pension, tax and financial advice

  • Provide them with a detailed Employee Benefits Handbook 'selling' to them the benefits of their total employment package

  • Better still, have a full on-line admin system which really 'sells' the benefits to your staff

  • Possibly offer the extra flexibility of a Group SIPP

  • Above all, COMMUNICATE what is going on - and our on-line administration system really does this!

    • Ask us for a demo

  • And your workforce will be happy and you will save money, hassle and legal grief

• Sounds Simple? - That's because we do it all and we make it simple for you!

• Wonder why nobody has suggested this to you before?

  • could it be that your existing administrators have a huge financial incentive to encourage you to continue your existing arrangements?

TEBC The Employee Benefits Consultants

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Copyright © 2005 TEBC Ltd
Last modified: 04-Dec-2007