Services: Client Case Study

The following case study details the pertinent facts of a recent pension review and new scheme implementation:-

A company approached us who, following a recent take-over, were keen to review the provision of their employee benefits, as well as the advisory services that went with them.

It transpired that they had a fee-charging advisor who would visit the offices on a quarterly basis, no more, and would provide information, as well as a group presentation, to the latest group of new employees. The service was restricted to speaking about the existing group pension and there was no continuity in either service levels or the advisers who would visit.

The company had a take up rate of below 30% for company matched contribution of up to 3%. For this, the adviser charged a daily fee in excess of £1000, annual fees and received commission from the insurance company.

Our proposal was to implement the TISCO service, meaning we met with each and every employee, from board level down. We then spent an hour with each individual, privately discussing the scheme and how it would affect them. We now return, each month, with the same advisers providing the same service.

We recommended implementing a salary sacrifice arrangement to enhance benefits, while reducing the employer’s costs. As changes in salary levels were necessary to create parity between employees, their HR department and our scheme implementation team calculated and executed these. Not one single employee suffered financially, the vast majority increased benefits at no additional cost, and the company reduced National Insurance costs and stopped paying advisory fees.

The results

• Pension scheme membership increased from circa 30% to circa 85%
• Reduced costs by over £60,000 by removing all advisory fees and decreased National Insurance costs

For a free, no obligation review of your benefits please contact us to see how we can help, or call 0800 169 2827 and ask for Andreas Hunter or Mike Denton.