flexible benefits
TRANSCRIPT
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Staff
information
Flexible Benefits Plan
June 2010
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1 Introduction 3
2 Whats in the Plan? 73 How do I join the Plan? 10
4 The core benefits 12
5 Holidays 13
6 Pension the money purchase option 15
7 Life Assurance and dependants death-in-service insurance 18
8 Long-term disability 20
9 Private medical insurance 23
10 Accidental death and injury insurance 2511 Optional benefits 27
12 Dental insurance 28
13 Critical illness cover 31
14 Childcare vouchers 34
15 Travel insurance 36
16 General information 38
Contents
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The Financial Services Authority 1999Reissued June 2010
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Introduction1
Flexible Benefits Plan 3
The Flexible Benefits Plan (the Plan) has been developed as part of your
overall remuneration package at the FSA. In line with our vision and values,the Plan aims to provide you with flexibility and choice. Unlike the traditional
way where an employer provides a standard benefit package to staff, flexible
benefits give you and the FSA the opportunity to build the benefits package
that is best for you.
The Plan is open to all permanent and fixed-term employees of the FSA,
including those on probation, (and others at the FSAs invitation). You may
review your benefit choices each year to ensure that they continue to meet
your personal circumstances.
The FSA provides a number of core benefits, which are considered essential
for all staff. Through the Plan you may elect additional coverage for these
benefits, you may also elect additional optional benefits. In addition, there are
a number of standard benefits not included in the Plan, which will also be
provided by the FSA to staff (see pages 8 & 9 for further information).
Each of the benefits available under the Plan (including any enhancement of
core benefits) will be attributed a value (the Flex Value). You will be able to
select benefits under the Plan which have a total Flex Value up to a maximum
figure. This maximum figure will be notified to you and will be called your FlexAccount. If you do not wish to attribute the total Flex Account in selection of
benefits then it will be assumed that you wish to receive a cash sum equal to
the difference. Any such cash sum will be subject to Income Tax and National
Insurance contributions at the appropriate rates.
The Plan will enable you to:
boost core benefits beyond the minimum level and request optional
benefits under the Plan up to the total value of your Flex Account;
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4 Financial Services Authority
ask to receive a cash sum up to the amount of your Flex Account
(less deductions for Income Tax and National Insurance); or
request a combination of the above.
In addition, you may request that your Flex Account be increased to provide
additional benefits. The maximum increase would be an amount equal to50% of your pensionable salary. This would result in your monthly salary
being reduced.
The selections you make under the Flexible Benefits Plan are subject to the
FSAs approval. In most cases the FSA will be able to match your requests,
but the FSA reserves the right to vary your benefit choices.
About this booklet
This booklet explains each of the benefits in turn, outlining the options available,as well as your entitlement to core benefits. The Flex Value attributed to some of
the benefits is age related, so it varies from person to person, as shown on your
personalised Enrolment Form. It is important to read this booklet in conjunction
with your Enrolment Form to ensure that the benefits you want are affordable
and appropriate.
Each section of the booklet includes a number of points to consider when
making your choices. You may only revise your choice once a year, unless
you undergo a major change in your personal circumstances (referred to as a
Lifestyle Change see page 6 for further information), so it is important thatyou choose carefully.
General information about the Plan is provided towards the end of the
booklet. Please note that this booklet contains summaries of each of the
benefits on offer. Before making your benefit choices, you should read the full
terms and conditions relating to specific benefits. Details of these and any
other information regarding the Plan can be viewed on the Connect+ site.
General terms
This booklet aims to be as straightforward as possible, but there are a
number of terms which need to be defined.
Pensionable salary
For the purpose of this booklet, benefit options are based on your pensionable
salary. Pensionable salary is the amount which you earn before any increase or
reduction as a result of the Flexible Benefits Plan. Any future increases in your
pay and benefits, as well as any pension contributions, will be based on this
pensionable salary.
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1 These lifestyle changes must be notified within 60 days from when the change takes place.
Dependant
The FSA Pension Plan provides benefits to your dependant should you
die while an employee of the FSA. For the purposes of this benefit, your
dependant is your spouse, civil partner or any other person (other than
a child) who is financially dependent on you.
Payment of benefits
A number of the benefits are provided through insurance companies. These are:
long-term disability, private medical, accidental death and injury, life assurance,
dependants death-in-service pension, critical illness, dental insurance and travel
insurance. Payment of these benefits will be subject to you fulfilling the
eligibility criteria and rules for claiming specified by the insurer.
Age
For those benefits that are age-related, your age will be taken as at the end of
the Flexible Benefits Plan year (31 May 2011).
Leaving the FSA
All benefits under the Flexible Benefits Plan will cease on the day of leaving
the FSA.
Lifestyle changesNormally you can only amend your choices each year and by one level of
cover only (e.g. to increase Life Assurance cover from 2 to 3 pensionable
salary). You can also amend your choices and increase your cover by a further
level (e.g. to increase Life Assurance cover from 3 to 4 pensionable salary)
following a Lifestyle Change. These are:
Gaining a partner1
Divorce1
Birth or adoption of a child1
Death of dependant
Contractual change in working hours
Change in earnings outside of annual pay review
If you wish to update your selections due to a Lifestyle Event, you should
contact the HR Helpline.
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Whats in the Plan?2
Flexible Benefits Plan 7
The FSA provides you with a number of core benefits. The Flexible Benefits
Plan allows you to define how you would like to receive your pay and benefitsin addition to your core benefit entitlement. You may choose the level of benefit
which suits your needs. The FSA reserves the right to review and change the
list of benefit options, and the providers of any of the options, from time to
time. Some options may also be withdrawn or restricted as a result of certain
Lifestyle Events.
Cont
All contributions to and benefits from the FSA Pension Plan are subject to ruleslaid down by Her Majestys Revenue and Customs (HMRC). These rules limit the
amount of tax relief you receive on the contributions you or the FSA pay into the
Plan and determine the tax treatment of the benefits you draw from it. If you
exceed the HMRC tax allowances you may be liable for additional tax charges.
Benefit Core entitlement Flexible options
Holiday 23 days (for full-time employees) Up to 38 days (i.e. 15 additional days in 1 day increments)
Money PurchasePension:
Under age 25, 6% of pensionable salary
from ages 25 to 29, 8% of pensionablesalary
from ages 30 to 34, 10% ofpensionable salary
age 35 and over, 12% of pensionablesalary
Additional contributions can bepaid in increments of 1% upto 50% (bearing in mind you canexceed your flex allowance by50% of your salary)
Life Assurance 2x pensionable salary 3x or 4x pensionable salary
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1 Due to the terms of the provider, this benefit is not available for staff on a fixed-term contract.
2 You are not eligible for this benefit if you are already in receipt of a monthly pension from the FSA Pension Plan.
If you do not allocate the whole of your Flex Account to additional benefits,
the FSA will assume that your preference is for the balance to be paid as cash.
Alternatively, you can ask for an increase in your Flex Account by a figure nogreater than 50% of your pensionable salary.
Additional benefits not included in the Plan
In addition to the benefits available under the Flexible Benefits Plan, the FSA
will provide the benefits listed below. You may receive, in accordance with
your Contract of Employment, the following:
Occupational sick pay above the required statutory sick pay level.
Benefit Core entitlement Flexible options
Long-term disability cover(i.e. permanent healthinsurance)1
50% of pensionable salaryafter 26 weeks (notreduced by any additionalState benefit paid)
Additional 10% or 20% ofpensionable salary after 26 weeks(not reduced by any additionalState benefit paid)
Medical insurance Employee Employee, Partner, Children orFamily
Dental insurance N/A Crystal: Employee, Partner,Children or Family
Opal: Employee, Partner, Childrenor Family
Pearl: Employee, Partner, Childrenor family
Diamond: Employee, Partner,Children or Family
Critical illness cover (a lumpsum payment should you bediagnosed as suffering from aspecified critical illness)
N/A 20k, 40k, 60k, 80k, 100k,120k, 140k Employee (withfree childrens cover of 25% ofthe sum assured, up to amaximum of 20,000)
Childcare vouchers N/A 50, 100, 150, 200, 243per month
Travel insurance N/A Employee, Partner, Children orFamily Luxury Worldwide
Accidental death and injury
cover
2 x pensionable salary N/A
Cycle to work There will be an annual entitlementto participate in this plan. Fulldetails are available on theConnect+ site
Dependants death-in-servicepension2
Up to 13 of yourpensionable salary
N/A
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Flexible Benefits Plan 9
An Employee Assistance Programme, providing confidential advice
and counselling.
Subsidised catering provided on site at 25 North Colonnade.
Health screening a free health assessment that considers your general
health and lifestyle.
Season ticket loans (up to the value of 5000 per annum) interest free
loans to cover quarterly, six monthly or annual season tickets are available
to all permanent employees.Application forms are available on the Forms
site on Connect+. If you are in your probationary period, you may apply for
a season ticket loan, but you are restricted to purchasing a ticket for the
duration of your period of probation.
Interest free loans (up to the value of 5000 per annum) are available to
staff to cover the purchase of a bicycle for use on their journey to work.Loans can be repaid over 3, 6 or 12 months. Application forms are
available on the forms site on connect(+). If you are in your probationary
period you may apply for an interest free loan to cover the purchase of a
bicycle for use on your journey to work, but you are restricted to repaying
the amount of the loan during the balance of your probation period.
These benefits are not provided through the Flexible Benefits Plan because
the FSA wishes to give equal access and cover to all staff. It would also
not be appropriate to provide some of these through a Flexible Benefits
Plan. The FSA may withdraw, replace or vary these benefits at any time.Further information on these benefits can be obtained from the HR Helpline.
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How do I join the Plan?3
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On joining the FSA you will receive an illustrative Enrolment Form (along
with your Contract of Employment) showing your Flex Account and theoptions available to you in addition to your entitlement to core benefits.
The table shows you how to join the Plan:
Process Notes Example (all figures stated ona monthly basis)
Receive an illustrative formshowing your Flex Accountand the flex value of eachbenefit option and link to
booklet. It is important youread this information priorto joining
Your Flex Account representsthe value of a package ofbenefits over and above thecore benefits. It is calculated
on an individual basis,depending on age, job leveland salary
A N Other, Age 33,salary 2,083.33
Monthly Flex Account Figure128.67
Decide whether to join theFSA Pension Plan
If you decide not to join theFSA Pension Plan you will losethe FSA contributions
A N Other chooses to join the FSAPension Plan but does not askthe FSA to make any additionalpayment
During your first week at theFSA you will receive an emailinviting you to select yourbenefits
Allocate your Flex Account tothe additional benefits andlevel of cover you require remember, your Flex Accountmay not cover all you want
You may elect to increase yourFlex Account with a figure nogreater than 50% of yourpensionable salary
A N Other chooses:
3 additional holidays24.04
partner medical insurance
74.79 critical illness cover 60,000
9.60
Not chosen
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Flexible Benefits Plan 11
If you do not make elections, the FSA will assume that you wish to receive
a cash sum and no benefits (other than the core benefits). The cash sum
will be paid monthly through the payroll.
Once you have selected your benefits and level of cover, and your choice(s)
has been authorised by the FSA, you will normally only be able to change
your selection at the beginning of the following Flexible Benefits Plan year,or earlier if you have a Lifestyle Change.
The Flexible Benefits Plan will be run on an annual basis from 1 June to
31 May.
Temporary absence should you be absent for an extended period, the
benefits which you have chosen under the Flexible Benefits Plan may be
reviewed. You will be notified if this affects you.
Process Notes Example (all figures statedon a monthly basis)
When you have made yourselections, and entered thedetails of any dependantsyou wish to cover, click onnext and your choices willbe submitted
You are not required to allocateyour entire Flex Account tobenefits. If you do not, it willbe assumed that you wish anybalance to be paid through thepayroll in equal monthlyinstalments and will be subjectto Income Tax and NationalInsurance contributions at theappropriate rates
Monthly Flex Account Figure128.67
Less:
Flex Value of benefits applied for108.43
Monthly cash sum20.24
Shortly after submitting yourelections, you can view yourconfirmed benefit selections.It will constitute part of yourEmployment Contract with
regard to pay and benefitsuntil the effective date ofyour next enrolment period
The FSA reserves the right tovary any choices you make.However, your wishes willalways be taken intoconsideration and the FSA
decision will normally be thesame as yours
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The core benefits4
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The FSA provides you with a number of core benefits which it believes all
staff should have as a minimum.
The Plan allows you to:
boost the level of your core benefits;
select some of the optional benefits allocating a sum of up to 50%
of your pensionable salary for more benefits if you choose; or
choose a combination of the above.
Should there be any balance remaining on your Flex Account, it will be
assumed that you wish to receive a cash sum equal to the balance through themonthly payroll in which case it will be subject to Income Tax and National
Insurance contributions at the appropriate rates.
You may review your choices at the beginning of each Flexible Benefits Plan
year, or earlier if you have a Lifestyle Change.
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Holidays5
Flexible Benefits Plan 13
You may select the number of holidays you would like above a core level.
You can change your selection each year to suit your plans.
Core level
Holiday is a core benefit you must take 23 days per year if you are a full-time
employee. Part-time staff will have a pro-rated core holiday requirement.
Options
You may request that your holiday allowance is increased to up to 38 days
holiday in one day increments.
Flex Value
The Flex Value of any additional holiday option is shown on your
Enrolment Form.
Benefit terms
The FSA requires all staff to take 10 consecutive days holiday in any one Plan
year. You should try to take all your holiday in the holiday year. However, it is
recognised that this is not always possible, so the carrying forward of holidayentitlement is permitted. There is no actual limit to the amount of holiday you
can carry forward, providing your total entitlement for the following year
does not exceed 38.
If you join the FSA in the middle of a Plan year, your holiday options will be
calculated as a pro-rata amount, based on an annual number of up to 15
additional days. The Flex Value of additional days will also change if you join
the Plan mid year. Your Enrolment Form will show the monthly figure for
each additional day.
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When choosing additional days in the middle of the Plan year, you should be
aware that your Enrolment Form will show the cost of purchasing the actual
number of days available for you to purchase based on the number of months
remaining in the Plan year.
The table below shows you the number of days available to you based onjoining on the 1st working day of the month.
If you join after the 1st working day of the month, you will receive holiday for
the month you join as set out in the table below plus the core allowance
shown above from the 1st of the following month.
For example, if you join the FSA on 12th November, your total core allowance
will be 12.5 days. This is based on receiving 1 day from 12th to 30th November
and 11.5 days from 1st December to the end of the following May.
Taxation
Holidays are not currently subject to Income Tax or National Insurance.
THINGS TO THINK ABOUT
Do you need extra holiday due to personal circumstances or family
commitments?
Are there any other benefits that you feel would be of more use to you?
Date of joining Additional core amount
2nd to 10th (inclusive) 1.5
11th to 20th (inclusive) 1
21st to end of month (inclusive) 0.5
Core Days Additional days to be purchased
1-Jun 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1-Jul 21.5 1 2 3 4 5 6 7 8 9 10 11 12 13 14
1-Aug 19.5 1 2 3 4 5 6 7 8 9 10 11 12 13
1-Sep 17.5 1 2 3 4 5 6 7 8 9 10 11
1-Oct 15.5 1 2 3 4 5 6 7 8 9 10
1-Nov 13.5 1 2 3 4 5 6 7 8 9
1-Dec 11.5 1 2 3 4 5 6 7 8
1-Jan 10 1 2 3 4 5 6
1-Feb 8 1 2 3 4 5
1-Mar 6 1 2 3 4
1-Apr 4 1 2 3
1-May 2 1
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Pension the MoneyPurchase option
6
Flexible Benefits Plan 15
Membership of the Money Purchase section of the FSA Pension Plan is
voluntary. Contributions to the Plan are paid via the Flexible Benefits Plan.In addition to your core pension benefit entitlement, you will be given the
option to increase the contribution level through the Flexible Benefits Plan.
If you choose to join the Money Purchase section of the FSA Pension Plan,
the FSA will contribute between 6% and 12% of your pensionable salary
(depending on your age). You will lose these contributions if you elect not
to join the FSA Pension Plan.
You have the option through the Flexible Benefits Plan to request the FSA
to change the level of contribution within the prescribed limits each year
to suit your needs. The Pension Plan offers flexibility by providing a range of
investment options for you to choose from. Full details of how the Pension Plan
works, and the investment options available, are provided in a separate booklet
entitled FSA Pension Plan Money Purchase Section Members Booklet. You
can view a copy of this booklet on Connect+ at Employee guidance>
Performance pay & benefits>Pensions.
Core level
Pension is a core benefit the minimum level of contribution paid dependson your age at the beginning of each month:
for staff below age 25 the FSA will pay 6% of your pensionable
salary; and
for staff age 25 to 29 the FSA will pay 8% of your pensionable salary,
for staff age 30 to 34 the FSA will pay 10% of your pensionable salary,
for staff age 35 and over the FSA will pay 12% of your pensionable salary.
Full details of your core level are given on your Enrolment Form.
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Options
You may request that the FSA makes extra contributions on your behalf by
sacrificing part of your Flex Account. These extra contributions must be made
in increments of 1% of your pensionable salary up to 50% (bearing in mind
you can exceed your flex allowance by 50% of your salary):From 1 June 2010 the FSA will share its National Insurance savings on those
Pension contributions with the individual who makes them.
You may also choose to increase your benefits further at retirement by
paying contributions of your own (known as Additional Voluntary
Contributions AVCs).
Flex Value
The Flex Value of increasing the FSAs pension contributions is shown onyour Enrolment Form.
Benefit terms
The FSA Pension Plan is contracted in to the State Second Pension (S2P).
This means that you will accrue additional state pension while in the scheme
through your national insurance contributions. You are able to contract out of
S2P on an individual basis, if you want to look into this option please contact
Human Resources.
The Money Purchase Section of the FSA Pension Plan is open to all permanent
and fixed-term employees aged 16 and over.
If your 25th, 30th or 35th birthday falls in the middle of a Flexible Benefits
Plan year, the FSA will increase the contributions to the relevant level from
the month following your birthday.
Taxation
Providing you do not exceed the HMRC tax allowances, you are not taxed
on the contributions the FSA makes for your benefit. Any retirement benefits
received as pension will be subject to Income Tax.
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Flexible Benefits Plan 17
THINGS TO THINK ABOUT
When do you plan to retire?
Have you thought about how much you need to save for retirement?
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Life Assuranceand dependantsdeath-in-service insurance
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1 This amount includes the capitalisation figure for the dependants death-in-service benefit.
In the event of your death while an employee of the FSA, a lump sum payment
will be made. In addition, a dependants pension of up to 1/3 of yourpensionable salary will be payable for life (together with childrens pensions).
Core level
Life Assurance is a core benefit, set at 2 x your pensionable salary.
Options
You may request that cover is increased to 3 x or 4 x your pensionable salary.
Flex Value
The Flex Value of buying Life Assurance cover varies with age. The Flex Value
of cover over and above the core level is shown on your Enrolment Form.
Benefit terms
If you are a permanent or fixed-term employee you are covered for Life
Assurance as soon as you join the FSA even though you may not be
immediately eligible to join the Flexible Benefits Plan (see Page 5), provided
that you are actively at work on that day (i.e. not absent due to illness orinjury). If you are absent on the effective date of cover, you will not be covered
until you return to work. When you join the Plan, you will not be asked to
provide a medical reference, unless the total value of your combined cover for
Life Assurance and dependants death-in-service is above 1,250,000.1 If you
earn over 138,000, you will be required to provide evidence of health. The
flexible benefits team will contact you if you are affected by this rule. If your
pensionable salary increases, so that cover exceeds 1,250,000, you will be
asked to provide evidence of health. In these circumstances the insurer reserves
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Flexible Benefits Plan 19
the right to decline cover, or offer cover at special rates, subject to the medical
reference obtained. If the cover is offered on special terms, you may be required
to pay an additional contribution.
If you wish to increase your Life Assurance cover in the future, you must be
actively at work (i.e. not absent due to illness or injury) on the effective date ofthe increase i.e. the first working day of the month following the election. This is
an insured benefit and the cover is subject to the insurers terms and conditions.
Life Assurance is provided through a trust. In the event of your death while an
employee of the FSA, your benefit will be paid to your beneficiaries or estate.
You can nominate your beneficiaries by completing an Expression of Wish
Form (which can be found on the forms site on Connect+). Payment will be
made at the Trustees discretion (to ensure that it is free of Inheritance Tax),
but your wishes will always be taken into account.
Life Assurance cover is provided to all permanent and fixed-term employees
up to age 65. After your 65th birthday, cover is subject to underwriting, due
to the terms of the insurer. The flexible benefits team will contact you if this
affects you.
Taxation
This benefit is not subject to Income Tax or National Insurance contributions.
If the benefit paid on your death exceed the HMRC Standard Lifetime
Allowance then a tax charge will be payable by the beneficiary.
THINGS TO THINK ABOUT
Do you have Life Assurance from another source?
Who should be your beneficiaries?
your partner
your children under 18 years of age and those who are still in
full-time education
any person who is financially dependent on you?Do you have:
other sources of income for the future
dependants who need financial help if something happens to you
debts that might become someone elses responsibility if you die?
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Long-term disability(Permanent healthinsurance)1
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1 Due to the terms of the provider, this benefit is not available for staff on fixed-term contracts.
2 Subject to the limit described in Benefit terms.
This benefit provides financial protection for you in the event of a long-term
absence from work due to illness or injury. The Core Cover of 50%2
pensionablesalary comes into effect after 26 consecutive weeks of absence from work.
Core level
This is a core benefit, set at 50%2 of your pensionable salary after a deferred
period of 26 weeks.
Options
You may request that cover is increased by an additional 10%2 or 20%2
providing a total benefit of 60%2 or 70%2 of your pensionable salary after
a deferred period of 26 weeks.
Flex Value
The Flex Value of cover over and above the core level is shown on your
Enrolment Form.
Benefit terms
Long-Term Disability benefit is payable to you if you are unable to continueworking due to illness or injury. This benefit comes into effect after 26
consecutive weeks of absence from work. Before that time in accordance with
your Contract of Employment you may receive occupational sick pay. You
should note that Long-Term Disability benefit is an insured benefit and payment
is subject to your claim meeting the requirements of the insurance company.
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Flexible Benefits Plan 21
Flexible Benefits Plan
The benefit you receive from this insurance will not be reduced by any State
benefit you may receive for long-term absence. However, the actual benefit
payable will be subject to a maximum of 75% of income less the long-term
State incapacity benefit payable to a single person (4,752.80 for the tax year2010/2011). In addition, there is an overall maximum benefit payable of
300,000 a year.
If you are absent from work and receiving Long-Term Disability payments, the
FSA will also continue to pay your core and flex pension contributions and
maintain National Insurance contributions for as long as you remain an
employee of the FSA. Core and flex pension contributions will be based on your
pre-disability pensionable salary.
You will be covered under the Long-Term Disability plan as soon as you join
the FSA even though you may not be immediately eligible to join the Flexible
Benefits Plan. To receive cover under the Long-Term Disability scheme you
must have been actively at work on the day the cover commences . To receive a
benefit under the scheme, you must have been absent for a continuous 26 week
period and meet the insurers terms and conditions for payment. If the total
value of your cover exceeds 120,000 a year you may be asked to provide
evidence of health. In these circumstances the insurer reserves the right to
decline cover, or offer cover at special rates, subject to the medical reference
obtained. If the cover is offered on special terms, you may be required to pay
an additional contribution.
If you increase your cover in the future, or if your pensionable salary increases so
that your cover exceeds 120,000 a year, you will be asked to provide evidence
of health. Any increase will also be subject to you being actively at work as above
(i.e. not absent due to illness or injury) on the effective date of the increase.
This is an insured benefit and the cover and payment of benefit is subject to the
insurers terms and conditions.
Payment of this benefit will continue until recovery, death or normal retirement
age (65).
Long-Term Disability cover is provided to all permanent FSA employees up to
age 65. After your 65th birthday, you will cease to be covered by this benefit,
due to the terms of the insurer. The flexible benefits team will contact you if
this affects you.
Long-Term Disability cover ceases on the day you leave the FSA, unless the benefit
is already in payment, in which case arrangements may be made for continuing it.
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Taxation
If you select this benefit, you will not be liable to pay Income Tax or National
Insurance contributions on the Flex Value shown on your Enrolment Form.
However, if you receive income through this benefit, it will be treated as salary
and will be subject to Income Tax and National Insurance contributions.If you leave the FSA, and the benefit is already in payment, the benefit may
continue to be paid directly to you, at which point it will be subject to
Income Tax.
THINGS TO THINK ABOUT
Do you have cover from other sources?
If you are unable to work due to illness or injury, do you have other sourcesof income to support you and your family until you recover?
Do you have dependants who would need financial support if you were
unable to work for an extended period?
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Private medical insurance9
Flexible Benefits Plan 23
1 Covers dependant children up to age 21, or 24 if in full-time education.
This benefit provides reimbursement for the cost of medical treatment for
you as an individual. It covers the cost of outpatient and inpatient treatment,received in private care, up to defined limits. It also provides a cash benefit for
treatment received in NHS care. You join the Private Medical Insurance Scheme
as soon as you join the FSA even though you may not be immediately eligible
to join the Flexible Benefits Plan.
Core level
This is a core benefit, set at individual cover (see Benefit terms for further detail).
Options
You may request that cover is increased to:
obtain cover for other members of your family as follows:
you and your partner
you, your partner and your dependant children1
you and your dependant children1
Flex Value
The Flex Value of cover over and above the core level is shown on your
Enrolment Form.
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Benefit terms
This benefit will provide a refund of any outpatient treatment or investigations,
as well as any inpatient treatment and accommodation (received in private
care at one of Bupa Partnership Network Hospitals) up to defined levels.
The benefit also provides a National Health Service cash benefit of 100 pernight, up to 35 nights per person per year. This cash benefit is available when
eligible treatment is obtained from an NHS hospital instead of a private hospital.
You should note that Private Medical Insurance is an insured benefit and is
subject to the insurers terms and conditions. Some medical conditions will not
be covered and details of these are available from the insurers.
Upon joining the Plan you will not be asked to provide a medical reference.
If in the future you waive this benefit or remove dependants from the
insurance, there will be a waiting period of two years before you can resumeyour cover or re-enrol your dependants.
Private Medical Insurance is the only core benefit that is subject to Income
Tax. If you receive comparable medical cover elsewhere or object to private
medical care, you may choose to waive this benefit. In such cases you should
note your wish to waive this benefit on your Enrolment Form.
Taxation
Private Medical Insurance is treated as a Benefit-in-kind for tax purposes,which means that you will be liable to pay Income Tax, but currently not
National Insurance contributions, on the cost of the benefit. Because this
benefit is subsidised by the FSA, the cost on which you are taxed will be
greater than the Flex Value specified on your Enrolment Form and is shown as
a note on your payslip.
THINGS TO THINK ABOUT
Do you have eligible dependants who require coverage?
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Accidental death andinjury insurance
10
Flexible Benefits Plan 25
Should you die or be seriously injured in an accident while an employee of the
FSA, you or your dependants will receive a lump sum payment. The actualamount received will depend on the nature, seriousness and circumstances of
your accident. This payment will be made in addition to any Life Assurance
cover that may be paid.
Core level
This is a core benefit, set at 2 your pensionable salary.
Benefit terms
You will be eligible to receive Accidental Death and Injury benefits as soon as
you join the FSA even though you may not be immediately eligible to join the
Flexible Benefits Plan. The benefit will be payable to you, in the case of an
accident, or to your beneficiaries should you die.
You can nominate your beneficiaries by completing an Expression of Wish
Form (which can be found on the forms site on Connect+). Should you die,
payment will be made at the FSAs discretion (to ensure that it is free of
Inheritance Tax), but your wishes will always be taken into account.
The amount paid will depend on the seriousness of your injury themaximum amount (i.e. 2 pensionable salary) may be payable for death
and the following accidental injuries:
permanent loss of a limb or sight in one eye
permanent loss of two or more limbs or sight in both eyes
permanent total disability
permanent loss of speech
permanent loss of hearing in both ears
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26 Financial Services Authority
A reduced amount of 25% of the cover may be payable should you sustain
permanent loss of hearing in one ear.
If your accident occurs on a scheduled or non-scheduled flight, the amount
payable could be limited if a number of staff are affected.
Taxation
If you suffer permanent total disability due to a work related accident, the
benefit will be paid tax-free. All other payments under this insurance will be
subject to Income Tax. If you die, a tax-free lump sum will be paid to your
beneficiaries at the FSAs discretion.
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Optional benefits11
Flexible Benefits Plan 27
You may not choose these benefits until you are eligible to join the Flexible
Benefits Plan.
The following benefits have no core level you may choose the benefits and
levels of benefit which best suit your needs.You can request optional benefits in
the same way as requesting additional benefits above the core entitlement. The
FSA has used its buying power to negotiate preferential rates for the optional
benefits. The Flex Values of each are provided on your Enrolment Form.
You may review your choices at the beginning of each Flexible Benefits Plan
year, or earlier if you have a Lifestyle Change.
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Dental insurance12
28 Financial Services Authority
1 Covers eligible dependants up to age 18, or 23 if in full-time education.
This benefit provides cover against the cost of certain types of dental
treatment. Benefits are provided through an insurance policy and you maychoose the level of cover that is most appropriate for you.
Options
There are four levels of cover provided through the Plan:
Crystal designed to cover NHS-scale charges up to an annual maximum
of 800 for routine treatment
Opal designed to reimburse lower level private fees, up to an annual
maximum of 1,000 for routine treatment
Pearl designed to cover charges of mid-scale private dentists, up to a
maximum of 1,500 for routine treatment
Diamond designed to cover charges of higher rate private dentists, up to
a maximum of 2,000 for routine treatment
You may request cover at either level for:
yourself only
you and your partner
you, your partner and your children1 or
you and your children1
Flex Value
The Flex Value of different levels of cover is shown on your Enrolment Form.
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Flexible Benefits Plan 29
Benefit terms
The three options allow you to claim for any necessary treatment purely
cosmetic work, or any treatment not available under the NHS, is excluded.
Treatments for which you may claim include:
preventative examinations, X-rays and scaling
minor fillings and extractions
major crowns, bridges and dentures
In addition, you may claim for:
emergency treatment overseas
sports injury treatment
orthodontic treatment for children
Both plans reimburse in accordance with a benefit schedule, a summary of
which is given below. The complete schedule is available on the flexible
benefits pages on Connect.
Taxation
This benefit is treated as a Benefit-in-Kind and is subject to Income Tax, but
currently not National Insurance contributions, on the Flex Value specified
on your Enrolment Form.
Treatment Crystal Opal Pearl Diamond
Maximum reimbursement per treatment ()
Examinations 6.10 18.80 20.30 31.90 34.50 45.00 46.00 65.00
Xrays(max 4 per year)
4.00 9.20 5.90 15.60 7.70 22.00 9.40 35.00
Scalings(max 2 per year)
9.50 24.00 38.50 49.50
Fillings 9.90 13.00 20.70 27.50 31.50 42.00 44.10 57.80
Root treatments 26.50 64.40 57.30 123.00 115.00 235.00 195.00 305.00
Crowns 13.90 95.10 27.60 198.10 41.20 330.00 56.70 425.00
Bridges 47.00 93.10 100.80 193.40 154.50 293.60 180.30 440.40
Extractions 10.80 28.20 26.00 47.60 50.00 67.00 65.00 100.50
Dentures 81.30 161.70 161.70 274.00 242.10 386.30 252.40 463.50
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30 Financial Services Authority
THINGS TO THINK ABOUT
Does this provide the kind of cover you require?
Do you or your dependants require dental coverage?
Does your partner have coverage available to you and your family?If you already use a private dentist, how do the charges compare?
Do your children already receive free dental treatment under the NHS?
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Critical illness cover13
Flexible Benefits Plan 31
This benefit provides a tax-free cash sum if you are diagnosed as suffering
from a specified critical illness or become totally and permanently disabledfrom carrying out any occupation before normal retirement age (65) while an
employee of the FSA. Benefits are provided through an insurance policy and
you may request the level of cover you would like.
Options
There are seven levels of cover:
20,000
40,000
60,000
80,000
100,000
120,000
140,000
all these include additional free childrens cover worth 25% of the sumassured (subject to a maximum of 20,000).
Whether or not you apply for this benefit, you may receive occupational
sick pay, in accordance with your Contract of Employment, and will still
be eligible for Long-Term Disability cover.
Limitation of cover
If your pensionable salary is less than 20,000 you will not be able to select
cover that is more than 4 your salary. For example, salary 12,500 (4
12,500 = 50,000. Options available 20,000 or 40,000.
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1 No benefit will be payable for Total and Permanent Disability if the disability is directly or indirectly a result ofinfection by AIDS, HIV or any similar or related condition.
Flex Value
The Flex Value of this benefit is shown on your Enrolment Form.
Benefit terms
Critical Illness benefit is payable on survival, for a period of 30 days, followingfirst diagnosis of one of the following specified critical illnesses:
Aorta graft surgery
Loss of hearing, limbs, sight or speech
Alzheimers disease
Benign brain tumour
Blindness
Cancer
Coma
Coronary artery bypass surgery
Deafness
Heart attack
Heart valve replacement or repair
Kidney failure
Major head trauma
Major organ transplant
Motor neurone disease
Multiple sclerosis
Paralysis Parkinsons disease
Stroke
Third degree burns
Total and permanent disability1
Each insured condition has a medical definition that needs to be met before
benefit can be paid.
The benefit will be payable if you survive for a period of 30 days after initial
diagnosis, or six months in the case of total and permanent disability or paralysis.In the event of a claim you should notify the FSA within 21 days of the diagnosis.
Cover of 25% of the sum assured (subject to a maximum of 20,000) is
provided for your children, aged between 3 years and 18 years (21 if in
full-time education), who suffer any of the above conditions provided the
definitions for payment are met. This cover is included in the terms of the
benefit and does not cost extra to provide.
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Flexible Benefits Plan 33
Important please read: This cover is an insured benefit and subject to the
insurers terms and conditions. Cover is provided without the need for medical
reference however it is automatically subject to the following exclusions:
No benefit shall be paid for any critical illness, which you have suffered
from prior to the inception of cover, which is a pre-existing condition orfor which benefit has been received. For the purpose of this exclusion,
some illnesses are treated as the same e.g. heart attack and stroke.
If you have previously suffered any critical illness, no benefit will be
payable under the total and permanent disability definition.
No child benefit will be paid for any condition that the child suffered from
prior to the start of cover for that child.
In addition, no benefit is payable for any critical illness occuring within
two years of you becoming covered (or the date of inclusion in the policyif later) which, in the opinion of the medical adviser nominated by the
insurance company, has resulted either directly or indirectly from any
condition from which you have received treatment for, suffered
symptoms of, asked advice on or was aware existed at, or prior to
becoming a member.
It is important that you understand these exclusions as they may prevent
benefit from being paid to you. The exclusions apply equally to any increase
in cover you take.
Taxation
This benefit is treated as a Benefit-in-Kind and is subject to Income Tax, but
currently not National Insurance contributions, on the Flex Value shown on
your Enrolment Form. The lump sum paid will not be subject to Income Tax.
THINGS TO THINK ABOUT
If you become critically ill, do you have other sources of income to supportyou and your family?
If you become permanently unable to work do you have any other sources of
income to support you and your family?
Do you have dependants who would need financial support if you were
unable to continue working for an extended period?
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Childcare vouchers14
34 Financial Services Authority
This benefit provides childcare vouchers, which can be used as part of full
payment for the care of children up to 14 years old. You can choose anyapproved or registered childcare (see list in Benefit Terms).
Options
You may request vouchers up to the value of 50, 100, 150, 200, 243
per month.
Flex Value
This benefit will be given a monthly Flex Value and this is specified on your
Enrolment Form.
Benefit terms
On joining you will receive a membership pack at your home address. The
pack will contain your unique account number and gives the details of the
telephone service and internet site for making payments to your carer, along
with the full information on the service provided.
The service works like a bank account, each month, the FSA will transfer your
selected amount to your account. The funds will then be available for you topay your childcare provider directly into their account. For ease, a standing
order facility is available which will automatically transfer a set amount each
month on a date specified by you.
Further information on this benefit can be found on the Flexible Benefits
pages on Connect(+).
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Flexible Benefits Plan 35
1 Childcare provided in the childs own home will not qualify if the person approved to give that childcare is a relativeof the child.
Childcare vouchers can be used as part or full payment for care provided by
approved or registered carers only, such as:
Registered childminders/nannies, nurseries and play schemes
Out of hours clubs on school premises run by a school or local authority
Childcare schemes run by school governing bodies under the extended
schools scheme
Childcare schemes run by approved providers, for example, an out of
school hours scheme or a provider under a Ministry of Defence
accreditation scheme
Childcare given in the childs own home by a person approved1 to care for
your child or children
Childcare given in the childs own home by a nurse from a registeredagency who cares for your child or children
Registered private nurseries and nursery groups
Although this benefit ceases on the day you leave the FSA, any childcare
vouchers you already have in your account will still be valid.
Taxation
All childcare vouchers options are not subject to Income Tax or National
Insurance contributions.
THINGS TO THINK ABOUT
Do you have any children or are you expecting a child within the flex-plan year?
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36 Financial Services Authority
1 Covers children up to age 18, or 22 if in full-time education.
This benefit provides cover for family holiday travel, and includes cover for
winter sports, medical costs, loss of property and delay in travel plans. It is inaddition to business travel cover, which will be provided by the FSA. You may
choose the level of cover you would like.
Options
You can request one of four levels of cover:
Worldwide Employee only
Worldwide Employee and Family1
Worldwide Employee and Children1
Worldwide Employee and Partner
Flex Value
The Flex Value of providing the different levels of cover is shown on your
Enrolment Form.
Benefit terms
Travel insurance cover includes:
Unavoidable cancellation of trip
Delay in travel plans
Missed departure
Medical expenses and personal accidents
Loss of, or damage to, personal property
Legal expenses
Travel insurance15
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Flexible Benefits Plan 37
This benefit covers any number of trips in one year, subject to a maximum of
45 days for any one trip (21 days for winter sports).
Taxation
This benefit is treated as a Benefit-in-Kind and is subject to Income Tax, butcurrently not National Insurance contributions, on the Flex Value specified on
your Enrolment Form.
THINGS TO THINK ABOUT
Does this provide the kind of cover you require?
Does your partner have coverage available to you and your family?
Do you know how much you spent on travel insurance last year? If so, howdoes it compare with the Flex Value of this insurance?
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38 Financial Services Authority
General information16
The Flexible Benefits Plan booklet is not incorporated into your Contract
of Employment and does not form part of your terms and conditionsof employment.
The information held by the FSA will be passed to and used by the product
providers in the course of preparing and implementing your choices.
The 1998 Data Protection Act protects information relating to your employment,
which is held by the FSA on computer and in paper records; it also sets
standards for how that data may be used. This also applies to any information
we pass to the benefit providers. Data relating to your pay and benefits will
only be held if required and will not be disclosed to any other parties.
The FSA hopes to continue the Plan indefinitely and to add other benefits as
and when appropriate. It must, however, reserve the right to modify, suspend
or discontinue the Plan, or any of the benefits within the Plan, by giving notice
to those employees then participating in, or eligible for, the Plan if future
conditions require such action.
Some of the benefits supplied through the Plan are insured. These benefits will
be subject to any restrictions or other terms and conditions imposed by the
insurance company. You should read the full terms and conditions relating to
specific benefits. Furthermore, as has already been mentioned, the choices youmake under the Plan will be subject to the approval of the FSA. In most cases
it is expected that the FSA will match your preferences, but the FSA reserves
the right to vary any choices you may make.
Taxation
Generally, the value attributed to a particular benefit is the cost to the FSA of
providing that benefit. It is this amount which is subject to Income Tax which
will be collected through the payroll on a monthly basis.
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Flexible Benefits Plan 39
Some of the benefits within the Plan are non-taxable under current legislation.
These are:
Life Assurance
Long-Term Disability
Pension (subject to HMRC rules)
Holiday
If you were to buy equivalent benefits out of your taxed income, the cost to
you would almost certainly be significantly more expensive. The cost of
buying the remaining benefits within the Plan is treated for tax purposes as a
Benefit-in-Kind. This means a cash value is assigned to the benefit, which is
treated as taxable income. These benefits are:
Private Medical Insurance
Dental Insurance
Critical Illness Cover
Travel Insurance
Please note that under current legislation all of the above benefits, if
chosen, will not attract National Insurance. This means that if your earnings
would not otherwise exceed the National Insurance limit (43,875 for the tax
year 2010/2011), taking these benefits could reduce your National Insurancecontributions.
The information on tax provided in this booklet is based on the law in force
at April 2010. The law may change at any time. The information in the
booklet is only a summary and cannot be seen as a substitute for obtaining
professional tax advice with regard to your own personal circumstances.
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The Financial Services Authority