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We are recruiting!

Corinthian Benefits are recruiting an Implementation Consultant to join our friendly team in Tunbridge Wells.

This role would suit an individual with knowledge of defined contribution pension schemes and auto-enrolment. 

To apply, please send your CV along with a cover letter to Roger at [email protected]

Click here to see the full job description 

How can employers ensure engagement is integral to a benefits strategy?

Although this article is through a free subscription of Employee Benefits online magazine, it is definitely worth a read.

The tendency with many employers is to put employee benefits in place and then think about how to engage people with them, but if they do that they are doing things the wrong way round.

The benefits package is important, but engagement must follow on from employees feeling value in what they do.

Read the full article here

Nest pension problems

The National Employment Savings Trust (NEST) was set up by the government more than a decade ago. It was to make sure every employee had access to a qualifying workplace pension scheme (QWPS). NEST was also set up to comply with the Auto-Enrolment legislation.

NEST was initially designed to be the last resort for smaller employers who couldn’t find an alternative pension provider. However, today a great number of SMEs still use it.

But is NEST the best option for you and your employees? Here are some of the biggest drawbacks with NEST:

NEST pension charges can be expensive

NEST was initially set up as a low-cost workplace pension scheme. However, now NEST pension charges are actually more expensive than some of its competitors.

Using Salary Exchange (also known as Salary Sacrifice) by engaging with a pension and benefits consultant such as Corinthian, can give significant savings – around £1,500 per annum for just 12 members[1].

[1] Each with average salary of £30,000 paying 3% with a 13.8% NI saving

Subject to Inheritance Tax

Unlike other pension providers, the NEST pension scheme can be subject to inheritance tax upon a member’s death.

NEST pays its death benefits directly to a member’s estate. This means that the money could diminish by as much as 40% before it reaches the next of kin. Although the government have been heavily criticised for this, there are no immediate plans to change this policy.

Not future-proof

With pension contributions increasing in April 2018 and again in April 2019, there’s a greater need to ensure that your pension provider can continue to work for you and your employees.

As their contributions increase, your employees will want to know more about the workplace pension scheme your company has chosen. They will want more transparency and the freedom to choose how their pension pot is invested. Likewise, employers may want to get more return for their benefit spend once they’re paying 2% and then 3%.

However, NEST won’t provide this level of support.

Can I transfer my NEST pension?

The average employee will change their job seven times before they retire. However, originally the government prevented NEST pension transfers in and out of the scheme. This makes it difficult for employees to consolidate their pension pots.

The government have since reversed this decision. As of April 2018, NEST members will be allowed to transfer their pensions. If you currently have a NEST pension, speak to a Corinthian Pension Advisor and we’ll be happy to help you.

If you have a NEST pension, speak to a Pension Advisor now

It’s important to remember that NEST is just a pension scheme. Here at Corinthian, we recognise circumstances change and your employees need a pension scheme which can evolve along with it. We provide an added value service to employers and their employees. And given the savings they would make utilising salary exchange, might be at very little additional cost, if any.

Get in touch today to find out how we could help you and how much money we could save you.

Winner of our Website Survey

We’re pleased to announce the winner of our Website Survey prize draw and the lucky recipient of a Waitrose Wine Chest. The winner is Jane Morrison of High Hilden Residential Home for the Elderly. Well done Jane and thank you to everyone who took the time to provide us with feedback.

 

Find out more about Corinthian Benefits and the services we offer.