The St. James’s Place Approach to the Corporate Market

WORKING IN PARTNERSHIP Ensuring Business Success

St. James’s Place Wealth Management• FTSE 250 company with over 80,000 wealth management

clients

• Funds under management of £20 bn

• Invested £3bn for clients in 2008

• 70% of new investments came from existing clients or

referrals from existing clients

• Financial Times/Investors Chronicle Best Wealth Manager

2008 and 2009

• Daily Telegraph – Wealth Manager of the Year 2007 & 2008

RetirementPlanning

Corporate

Protection

Exit Planning

Tax and Accountancy

TrusteeInvestment

InsuranceBroking

Wealth Management

Employee Benefits

GroupPensions

Challenges for your business

As well as the challenges you face in the day-to-day running of your business you now have to consider others including :

• Employee Benefits & Employment Law• Corporate Protection & Business Liability Assessment• Corporate Investment Strategies and Exit Planning

Some of the above may involve a service that is separate and distinct to those offered by St. James’s Place.

Looking after your people for the benefit of your business

• Employees – key to the success of the business

• Cost effective and tax efficient methods of recognising

employee contribution• Recruitment and retention of the best people

Employee Benefits

• Group Life Cover• Group Income Protection• Group Critical Illness • Group Private Medical• Group Pension Plans – Changing Pension Legislation

Registered Group Life Cover

Benefits for the employer:

• highly valued cover• flexible and cost effective benefit• treated as a business expense against tax• helps attract quality staff• reduce staff turnover by helping to retain key staff

Registered Group Life Cover

Benefits for the employee:

• security and peace of mind for dependants• lump sum paid quickly (usually calculated as a multiple of

salary)

• lump sum is not part of the total employee’s estate

• No cost to the employee and favourable tax treatment

Group Income Protection

Benefits for the employer- Helping to solve HR Issues: • Attracting and retaining staff• Keeping staff motivated• Employee health and wellbeing• Absence management• Controlling payroll costs• Managing pension plans

Group Income Protection

Benefits for the employee:

• An income continues while unable to work

• Helps to maintain lifestyle of the claimant and his/her dependants

• Return to work expertise and help available

• No P11D for the employee if benefits are paid through the employer

Group Critical Illness

Benefits for the employer:

• improves likelihood of employee returning to work

• mitigates the cost of ex-gratia payments

• enhances employee loyalty and retention

• helps minimise the pressure on the employer around how

they provide financial support for employees on long-term

sick leave

Group Critical Illness

Benefits for the employee:

• provides financial resources to pay for private medical

treatment and/ or physiotherapy to facilitate recovery

• compensation for time away from work

• provides a means of support for employee and dependants

during a critical time

Group Private Medical

Benefits for the employer:

• Reduce sickness absence costs and increase profits• Attract the best people with a top benefits package • Reduce staff turnover and retain key staff• An allowable business expense

Group Private Medical

Benefits for the employee:

• Prompt access to treatment • Patient choice• A wide choice of hospitals and specialists to suit employees

needs • A Benefit at the top of most employees’ ‘wish list’

How can companies keep employees?

• 46% of employees value their occupational pension more than any other benefits (excluding paid leave).*

• Benefits most valued by employees are holidays (93%) and pension arrangements (73%).**

• Two main reasons employers improve benefits are to boost recruitment (35%) and retention (35%).**

• Cost of recruitment is£4,000, while cost of attrition is £6125.†

• *Employee Benefits Research 2008• **Trends in Employee Benefits 2008, Hymans Robertson• †Chartered Institute of Personnel and Development 2009 (All employees)

An introduction to pensions reform

Set out in Pensions Act 2008

– Aim – more people saving more– New employer responsibilities

• All employers except single-person companies– Creation of a new personal accounts scheme

• Qualifying Workplace Pension Scheme• A trust-based occupational pension scheme (Defined

Contribution)• Will be regulated by the Pensions Regulator

Get to know

– Your duties– What makes a qualifying scheme?– What are qualifying earnings?– When do your duties start?– Decision Time?

Your duties in summary– Automatically enrol jobholders, aged between 22 and

State Pensions Age, into a qualifying pension scheme or personal accounts scheme

– Pay a minimum contribution of 3% of qualifying earnings if they don’t opt out

– Pay a minimum contribution of 3% of qualifying earnings for already active members of a qualifying scheme

– Jobholder, aged between 16 and 22 and over State Pension Age and under 75, arrange to be able to opt-in and pay minimum contributions of 3% of qualifying earnings if they don’t opt-out

What makes it a qualifying scheme?– A qualifying scheme is one where:

• it’s a registered occupational or a personal pension scheme (incl. stakeholder)

• the employer’s contribution is at least 3% of the jobholder’s qualifying earnings

• the total of the employer’s and jobholder’s contribution is 8% of the jobholder’s qualifying earnings

– An auto-enrolment scheme is a qualifying scheme where:

• Jobholders are auto-enrolled

• jobholders are re-enrolled every three years

• there are no member decisions (eg default investment fund)

What are qualifying earnings?– Earnings between £5,035 and £33,540 within a 12-month

pay period*– ‘Earnings’ for these purposes include:

• salary or wages • commission • bonuses • overtime payments• shift allowances • any statutory pay, ie sick pay, statutory maternity etc

– Most employers currently use % of basic pay with no lower band cut-off

• *These figures are based on 2006, and will be revised by the government in the future. It’s expected to increase for 2012.

When do your duties start? Staging and phasing

– Employer responsibilities to be staged• Over 18 months from October 2012?

– Contributions to be phased in• All start at 1% employer and 1% jobholder

contributions

Employer cont Jobholder cont*

Phase 1 1% 1%Phase 2 2% 3%

Phase 3 3% 5%J*Jobholders contributions includes tax relief

Decision time

Does your scheme qualify?• Does your scheme qualify?

• Which solution for which employees?

• How much do you want to contribute?

• How do you accommodate the additional cost?

• When to act?

Which solution for which employees?

St. James’s Place Wealth Management

• For further information on the content of this presentation or any of our other services please contact:

• David Cook • David.cook@sjpp.co.uk• Office: 08451 303084• Mobile: 07774843651