CPD Workshop 2011 3 February 2011 WELCOME Lindsay Melvin CEO, CIPP Lindsay Melvin • Maths Graduate – Bristol Uni • Chartered Accountant • Member of the CIOT • National winner for essay on strategy • Finance director for USM quoted company • Chair of a Group of Subsidiary Companies Lindsay Melvin • CEO of engineering group • Operations Director of CIPP • CEO of CIPP • Foundation degree in payroll management student • London marathon runner CIPP’s Mission Statement “Leading payroll and pension professionals through education, membership and recognition” What has the CIPP achieved in last 12 months? • Chartered status • Development of Pensions FD • Investment in e-learning • Progression in PQP and training • Financial stability • Growth of strategic partnerships Our immediate strategies • To strive for excellence in all departments • To be proactive with our members and potential members both in the UK and internationally • To continue with our growth in all areas Our longer term strategies • To live and breathe our mission statement • To increase both the payroll and pensions profile in the UK and internationally • To strive for excellence in all we do • To be proactive What learning outcomes do we want from today? KNOWLEDGE FRIENDSHIP FUN!!!! What I would like you to do • Work in pairs and: • On yellow post its note down (one item per post it) what particular technical learning outcome(s) you would to achieve • On……post its note down the soft skills outcome(s) you would like to achieve YOUR ACTION LIST • During the day please note down any actions which you plan to implement when you get back into your office • At the end of the day can you please fill out a course evaluation form • Thanks! How can I bring more added value to my job? Steve Poole Worcester College of Technology Stages of awareness during development Analysing competence Two areas that you need to consider: • Job related needs – what knowledge and skills do you possess at the moment, and what do you need in order to progress? • Learning needs – how are you most likely to acquire the knowledge and skills you need? Activity As individuals please complete the Personal Competence questionnaire. In groups compare your answers and identify common themes, write these themes on your flip chart paper. Personal Competence Areas • Acting assertively • Acting strategically • Behaving ethically • Building teams • Communicating • Focusing on results • Influencing others • Managing self • Searching for information • Thinking and taking decisions Refreshments Recommence: 11:15 CPD Legislation Update 1 CIPP Policy & Research Karen Thomson FCIPP MSc INDEX OF SLIDE TOPICS • Rates & Allowances • Attachment of Earnings • Citizen News • Expenses & Benefits INDEX OF SLIDE TOPICS • Expenses & Benefits • National Insurance • PAYE • Statutory Payments INDEX OF SLIDE TOPICS • Employment Law • Miscellaneous Rates & Allowances Rates & Allowances Small Employers Compensation Rate • From April 2011 • Reduced from 4.5% to 3% • 92% for all other employers remains unchanged Rates & Allowances Statutory Payments 2011 per week Statutory Adoption Pay Earnings Threshold £102 Standard Rate £128.73 Statutory Maternity Pay Earnings Threshold £102 Standard Rate £128.73 Statutory Paternity Pay Earnings Threshold £102 Standard Rate £128.73 Statutory Sick Pay Earnings Threshold £102 Standard Rate £81.60 Rates & Allowances Redundancy Rates • 1 February 2011 – £400 per week – Daily Guarantee Payment £22.20 Rates & Allowances Advisory Fuel Rates AFRs for company car drivers from 1 December 2010 Engine size Petrol Diesel LPG 1400cc or less 13p 12p 9p 1401cc to 2000cc 15p 12p 10p Over 2000cc 21p 15p 15p Rates & Allowances Jurors Allowances (Scotland) January 2011 Financial loss allowance – first 5 £32.37 days of service – up to 4 hours Financial loss allowance – first 5 £64.95 days of service– more than 4 hours Financial loss allowance– 6th to £129.91 100th day of service Financial loss allowance – 101st £230 day of service onwards Adult dependent carer allowance £6 per hour Rates and Allowances Pensions Tax Relief • 2011/12 - AA for tax privileged pension saving reduced from £255,000 to £50,000 • 2012/13 - LTA to be reduced from £1.8m to £1.5m Attachment of Earnings Attachment of Earnings AEOs • Changes to Court Order regulations likely • Consultation February 2011 • Policy team will update after meeting Expenses and Benefits Expenses and Benefits Company Car changes • 2011-2012 – No reduction for alternative fuels – Diesel surcharge to apply to all vehicles – 9% for wholly electric cars, but temporary 0% continues until 2014-15 – £80k cap abolished – Lower threshold reduces from 130 to 125 g/km – Letters will only be E, D & A Expenses and Benefits Payrolling • HMRC still consulting with stakeholders • PAYE proposal discussion document – Asked a question in respect of P11Ds – CIPP members continue to support “payrolling” – When Real-Time Information is introduced makes sense to payroll BIKs Expenses and Benefits Salary Sacrifice • Childcare Voucher Scheme to change 6 April 2011 – Basic Rate tax relief only – FAQs published October Expenses and Benefits Salary Sacrifice • Childcare Voucher Scheme – Employees in scheme prior to 6 April 2011 unaffected – New scheme from 6 April 2011 for new entrants or new schemes Expenses and Benefits Salary Sacrifice Basic Rate Higher Rate Additional Rate Weekly £55 £28 £22 Monthly £243 £124 £97 Annual £2915 £1484 £1166 Expenses and Benefits Salary Sacrifice • Childcare Voucher New Scheme – 6 April earnings assessment to be carried out, includes BIKs – Records to be kept for compliance purposes – Personal Allowance acceptable to use code as at 6 April – Assessment valid for 12 months – Error use P11D – GUIDANCE AVAILABLE ON CIPP AND HMRC WEBSITE Expenses and Benefits Salary Sacrifice • Cycle to work scheme – HMRC confirms no exemption where legislation prevents employees from joining scheme – therefore not deemed “available to all” – Revised guidance published – Valuation Matrix published Expenses and Benefits Cycle to work matrix Age of Cycle Acceptable disposal value % Original price of cycle less than Original Price £500+ £500 1 Year 18% 25% 18 months 16% 21% 2 years 13% 17% 3 years 8% 12% 4 years 3% 7% 5 years Negligible 2% 6 years and over Negligible Negligible Expenses and Benefits Salary Sacrifice • Workplace Canteens – From 6 April 2011 legislation has been introduced to restrict the exemption for the benefit of free or subsidised meals where an employee has an entitlement in conjunction with salary sacrifice or flexible benefits arrangements to employer-provided free or subsidised meals Expenses and Benefits Salary Sacrifice • VAT on Retail Vouchers – Astra Zeneca UK v HMRC case – ECJ rules in favour of HMRC – Guidance expected Expenses & Benefits P46 (Car) • April 2011 – HMRC to permit replacement car forms where sent electronically PAYE PAYE PAYE Review • PAYE Review – Real Time Information to proceed – 2012 start of implementation – Consultation closes 28 February – More workshops to go ahead with CIPP and HMRC – More on this in the next update PAYE Scottish Income Tax • Serving Scotland Better Calman Report – SVR to be replaced with new Scottish Rate of Income Tax – Scottish taxpayers rate to reduce by 10p in the pound – Government committed to devolution of Scottish Income Tax – Scotland bill introduced November 2010 PAYE Student Taxation Browne Report • Discusses student funding and repayment of Student Loans • Graduate tax not to go ahead • New proposal “Student Finance Plan” – Students pay nothing up front – Earnings threshold £21,000 per year – 9% of any income above £21,000 – If earnings drop, then payments drop, known as a payment holiday • Response to the review due Online Considerations Online Filing ESC B46 • Extra Statutory Concession B46 ceases on 31 March 2011 – No grace for late returns Statutory Payments Statutory Payments Additional Statutory Paternity Pay – April 2011 – Regulations approved by Parliament 18 March 2010 – Statutory Paternity Pay to be renamed Ordinary Statutory Paternity Pay (OSPP) – Guidance published – No changes to PAYE forms in 2010/11 – Payroll software specification now available Statutory Payments Additional Statutory Paternity Pay – Applies to babies due on or after 3 April 2011 – The rate of ASPP will be the lower of 90% of average weekly earnings or the standard weekly rate. – ASPP will be available only if the employee’s partner (the mother or adopter) was entitled to SMP (or Maternity Allowance (MA)) or SAP and has returned to work before the end of the SMP, MA or SAP pay period. – The employee will be able to work for up to ten days during the ASPP without losing the right to APP for the APP-weeks in which he or she worked. Statutory Payments Additional Statutory Paternity Pay – Only one period of leave and pay will be available regardless of the number of children born or adopted. – The earliest point that APP and leave could be taken is when the child is 20 weeks old (or, in the case of adoption, 20 weeks since the date of placement); – APP must cease by the child’s first birthday (or in the case of adoption, within twelve months of the date of placement). Statutory Payments Additional Statutory Paternity Pay • Guidance located on HMRC web pages and Business link – Covers early birth and death of mother – For guidance visit HMRC home/employer column/statutory payments Statutory Payments Additional Statutory Paternity Pay • Employers can ask to see proof of birth – E.g. Birth Certificate – Legislation will not permit withholding of ASPP Statutory Payments Additional Statutory Paternity Pay • Self Cert means dates may not align • Could be a gap between transfer of payment • ASPP to be paid within 39 SMP pay period • Only last week of ASPP can be a part week payment Statutory Payments Additional Statutory Paternity Pay • No changes to SMP as a result of introduction of ASPP and leave • SMP pay period continues for woman even if returned to work – If woman goes sick within 39 weeks SMP pay period SMP due not SSP Statutory Payments Additional Statutory Paternity Pay • Revised HMRC Booklet E19 • Forms • SC3 becoming a parent • SC4 becoming an adoptive parent • SC5 Ordinary Statutory Paternity Pay and ordinary paternity leave when adopting from abroad Statutory Payments Additional Statutory Paternity Pay Forms cont’d: • SC7 Additional Statutory Paternity Pay/ ‾ additional paternity leave – becoming ‾ a parent • SC8 Additional Statutory Paternity Pay/additional paternity leave – becoming an adoptive parent • SC9 Additional Statutory Paternity Pay/additional paternity leave – adopting a child from abroad Statutory Payments Additional Statutory Paternity Pay • Finally: • SC10 Additional Statutory Paternity Pay/additional paternity leave - death of the mother/adopter Statutory Payments Statutory Adoption Pay E16 • From April 2011 only available online – Least used statutory payments booklet – All others still available online and in paper format – More booklets to go online in the future Employment Law News Employment Law unfair dismissal • Government is considering increasing length of service before employee can claim unfair dismissal – Likely to be increased from 1yr to 2yrs Employment Law Holiday pay and PHI payments • Souter v Royal College of Nursing (Scotland) – Employment tribunal refused claim for backdated holiday pay whilst receiving PHI payments Employment Law Agency Workers • EU Directive for equal treatment • Temporary staff will have equal rights after 12 weeks • Government confirmation regulations go live October 2011 • Further guidance expected Employment Law Flexible Working • BIS announcement: – Right to request flexible Working • Extended to children under 18 • Expected April 2012 Employment Law Right to request time off for training • 6 April 2010 phased in with completion in 2011 – Employers to consider request – Follows same model as flexible working requests – Government reviewing August 2010 Miscellaneous MISC HMRC consultation on record checks • Programme expected for SMEs – Checking adequacy and accuracy – Consultation on how this might work MISC HMRC Centralising PAYE • HMRC have begun work to centralise certain operational work to Newcastle – Expected to create significant savings – To be completed March 2011 MISC VAT on promotional samples • EMI v HMRC – ECJ ruled no VAT on promotional samples MISC EEA NI Agreement • E101 certificate – No longer via “Do it online” – Apply using secure registration – Effective 11 November 2010 Contacts • Karen Thomson firstname.lastname@example.org • Diana Bruce email@example.com Legislative Update Thank You CIPP Policy & Research Karen Thomson FCIPP MSc Lunch Recommence: 13:00 CIPP Continuing Professional Development Workshop 3 February 2011 HMRC Update Phil Nilson Business Customer Unit Agenda • National Insurance and PAYE Service (NPS) Update • Improving the Operation of PAYE • Communications with employers • End of Tax Year 2010-2011 • Changes from 6 April 2011 • National Minimum Wage • Plastic National Insurance Number cards NPS Update • Annual Coding • End of Year Reconciliation • Data Quality – http://www.hmrc.gov.uk/ebu/paye_techpack/business-rules.pdf NPS – Help and support Help for taxpayers can be found at: www.hmrc.gov.uk/P800 or 0845 3000 627 Contacting HMRC • There is now just one number for employees to ring for help with tax enquiries: – 0845 300 0627 • And only one for employers: – 0845 7 143 143 • And we have made changes to our Contact Centre opening hours: – No Sunday opening – Monday – Friday: 8am to 8pm – Saturday: 8am to 4pm Improving the Operation of PAYE Improving the operation of PAYE • ‘Discussion document’ issued 27 July 2010 • Consultation document issued 3 December 2010: ‘Improving the operation of PAYE: Collecting Real Time Information’ • Closing date for comments 28 February 2011. Send to: – firstname.lastname@example.org – HM Revenue and Customs, PAYE Consultation, 100 Parliament Street, London SW1A 2BQ – Telephone 020 7147 0842 What’s in the consultation document? • PAYE Today and RTI in outline • Responses to the Discussion Paper • Real Time Information: detail • Channel choice • Scenarios – what will happen in practice • Timetable for implementation • Real Time Information items for employers – currently 102 Communications with employers Communications with employers • You will no longer receive any Employer Packs • These have been replaced by online guidance and downloadable applications. Go to: – www.businesslink.gov.uk/employerpackandbulletins • To ensure you don’t miss anything, register for ‘e-mail alerts’; go to: – www.businesslink.gov.uk/hmrcemployeremailalerts • See also, informal HMRC ‘Weekly Updates’. Click on ‘What’s new for PAYE’ at www.businesslink.gov.uk/paye Registering for e-mail alerts You will need: • Employer PAYE reference • Employer name • An e-mail address • Phone number and contact name NB: This is not the same as registering for HMRC’s Online Services Basic PAYE tools • Download from mid-February at www.businesslink.gov.uk/basicpayetools • Tools include: – an employer database – a P11 Calculator, linked to P32 Employment Payment Record – a range of other calculators – Interactive forms – a Learning Zone Basic PAYE tools • If you used the Employer CD-ROM during 2010-2011, in order to successfully transfer data across to the new tools, you must download the latest update to the 2010 CD-ROM. Go to: – www.hmrc.gov.uk/employers/cdrom • Technical specifications required to run the Basic PAYE Tools can be found in the Online Employer Bulletin due to be published on 14 February End of Tax Year 2010-2011 End of Tax Year 2010-2011 • Your Employer Annual Return – P35 and P14s – must reach HMRC by 19 May 2011 • Extra Statutory Concession B46 comes to an end on 31 March 2011… – go to www.hmrc.gov.uk/briefs/company-tax/brief2410.htm • If no Return is required… – go to www.businesslink.gov.uk/noemployerreturn • If a Return is required… – go to www.hmrc.gov.uk/ebu/qual_stan.htm The Employer Orderline and paper P14 forms • HMRC asks employers and agents to consider carefully their paper stationery ordering requirements • Online filing for virtually all employers means there is now no need to order paper P14s • Reduced P14 stationery was available for 2009-2010 • For 2010-11 and beyond: – P14 will become a 2-part form – HMRC will hold only stocks of the manual completion 2-part P14 Electronic P60s • Employers to have the option to provide P60 information in paper or electronic format • The change comes into effect for the tax year 2010-11 onwards, meaning that the first P60 that can be provided electronically will be that for the year ending 5 April 2011 • The information recorded on form P60 is not changing • HMRC publication RD1 (Substitute forms P60) will be updated Changes from 6 April 2011 Changes from 6 April 2011: Income Tax Income Tax Allowances Personal Allowance for people aged under 65 £7,475 Personal Allowance for people aged 65-74 £9,940 Personal Allowance for people aged 75 and £10,090 over Married Couple’s Allowance aged 75 and over £7,295 (born before 6 April 1935) Changes from 6 April 2011: Income Tax Rate % Bandwidth Basic rate 20% £1 - £35,000 Higher rate 40% £35,001 - £150,000 Additional rate 50% £150,001 and above Changes from 6 April 2011: Income Tax The headlines: • A general uplift of tax codes with suffix ‘L’ • Code for emergency use will be 747L • Instructions for employers on form P9X(2011) – Go to www.businesslink.gov.uk/payeformsandpublications • Individual tax codes issued between January and March • New tax code D1 introduced Changes from 6 April 2011: NICs Lower Secondary Primary Upper Upper Earnings Threshold Threshold Accrual Earnings Limit Point Limit Weekly £102 £136 £139 £770 £817 2 weekly £204 £272 £278 £1540 £1634 4 weekly £408 £544 £556 £3080 £3268 Monthly £442 £589 £602 £3337 £3540 Annual £5304 £7072 £7225 £40040 £42475 Changes from 6 April 2011: NICs rates All contracted-out and Not contacted-out rates increase by 1%: – Employer, including: – Class 1A and Class 1B – Employee, including – Married Women’s/Widows’ Reduced Rate – Additional rate due above Upper Earnings Limit For more about tax and NI rates, thresholds and allowances, go to: www.hmrc.gov.uk/employers/rates_and_limits.htm or see Helpbook E12 New coding changes from 6 April 2011 Scenario Current code Code from 6 April Employee does not provide a P45 or BR, cumulative basis 0T complete P46 on time Payment made to an individual who BR 0T has left Paid employment continues after New code on Week 0T employee begins receiving 1/Month 1 basis occupation pension payments Paying tax at the 50% rate in 2010-2011 • 50% rate introduced from 6 April 2010 for taxpayers with taxable income of more than £150,000 • Right amount of tax should be deducted if income is from one source only… • …but if from two or more sources, an underpayment is likely to arise • HMRC is writing to such taxpayers warning them of the potential underpayment; letter will be headed ‘Paying tax at the 50% rate in 2010-2011’ National Minimum Wage National Minimum Wage Changes effective from 1 January 2011: • payments to workers for travelling expenses (and associated expenses for subsistence and accommodation) reduce national minimum wage pay if they are paid for travel from home to a temporary workplace and are allowable for tax and National Insurance purposes • On 1 October 2010, BIS announced a scheme to name employers who deliberately flout NMW law. The scheme came into effect on 1 January and employers who meet published criteria will be named by BIS in a press release National Minimum Wage Other news: • The National Minimum Wage (NMW) Annual Report is now available. It provides information about a range of NMW issues and gives details of the NMW compliance strategy. To view, go to www.bis.gov.uk/nmw • The Government is consulting on possible changes to the NMW rules on employer-provided accommodation in relation to students who work part-time for their educational institution. The consultation document was published in January. To view, go to www.bis.gov.uk/consultations Plastic National Insurance number (NINo) cards • HMRC has ceased sending out replacement cards; a letter is sent instead • We expect to withdraw plastic cards around October 2011 • If an employee can’t produce a NINo, go to: – www.hmrc.gov.uk/forms/ca5403.pdf (employee) or – www.hmrc.gov.uk/forms/ca6855.pdf (employer) Any questions? How good are you as a team player? What is this question actually asking you? Steve Poole Worcester College of Technology Personal Effectiveness What are the areas of skill and competence that you need to be able to demonstrate if you are to be considered personally effective? 10 Competence areas • Coping with stress • Managing time • Verbal communication & body language • Assertiveness • Negotiating • Taking part/chairing meetings • Effective presentations • Problem solving • Creativity • Decision making Communications How effectively we communicate determines how well we can: • Build relationships • Convey purpose and meaning • Motivate others • Coach, develop and support others • Gather and use information • Agree objectives and strategic direction • Solve problems • Manage changing situations • Provide effective customer service Listening skills • Effective verbal communication is a two way process • Research suggests that we spend about 70% of our time listening • Implies that if you want to improve your communication skills the best place to start is with listening skills Activity One Good and poor listening Feedback When you were listened to you probably noticed that the listener was: • Using eye contact • Nodding or showing in some other way that they were concentrating on what you said • Asking relevant questions This kind of behaviour characterises what is called active listening. Active listening enhances relationships The speaker will: • Feel understood • Be more likely to approach you a second time • Be more receptive to what you have to say You will: • Build a relationship that will support future communications • Be able to make informed decisions as a result • Be in a better position to help with queries or problems Questioning skills We all use questions everyday for: • Gathering information • Developing or testing understanding • Stimulating reflective thought • Applying information • Helping to understand new concepts • Developing and/or changing attitudes • Assisting evaluation • Focusing attention 4 Types of questions • Open • Closed • Leading • Probing Practice 1. Did you complete the report I asked you for? 2. You will work overtime this evening, won’t you? 3. What happened at the meeting? 4. Would you like someone from the project team to help you? Positive and negative language • Most people work more effectively in a positive and enthusiastic environment • Some words and phrases create a positive effect • Others create a negative effect • Use your judgement – you can promote supportive communications by being aware of the effect of what you say! Body language Research has shown that in face to face conversation people communicate in the following way: • 50% by their body language • 40% by their tone of their voice • 10% by their verbal delivery Body language is: • How we combine expression, gesture and posture • Eye contact • Facial expression • Use of hands • General posture • Organising the space • Mirroring Activity In pairs identify how you would use your body language to convey: • Confidence • Mistrust • Liking • Uncertainty Be prepared to demonstrate! Summary • Listening and questioning skills are important elements of the communication process • Active listening involves paying due attention to ensure that you understand what is being said • Asking questions is part of active listening but also helps you gather information and confirm that you’ve got it right • Body language may convey more than our actual words do Introducing PebblePad The Institutes CPD recording toolkit Allan Isdale Introduction • What is PebblePad • Tour of PebblePad • Q&A Session Questions ? Thank you email@example.com Refreshments Recommence: 15:15 2012 The Impact of Pensions Reform on employers and some important but little known facts Darren Laverty, Director, secondsight Andy Agathangelou, Head of Business Development & Training, PTL Areas covered 1. Auto-enrolment in plain english 2. Understanding the National Employment Savings Trust (NEST) 3. How early decisions could save employers huge sums for many years Aims of Pensions Reform • To increase the retirement savings of the nation • Aimed particularly at the low paid who do not save and small employers • The hope is that many continue to save and not opt out How could 2012 impact employers? costs returns Auto-enrolment into ‘a’ pension Key principles: • New employees auto-enrolled after 3 months • All non-pension members enrolled • Employees must join and then can then choose to opt out • Opt outs re-enrolled every 3 years Employers must auto-enrol into a ‘Qualifying’ pension scheme 1. Use NEST 2. ‘Certify’ own existing group pension Intended contribution structure • ‘Jobholder’- pays 5% of ‘Qualifying Earnings’ and Employer - pays 3% • ‘Qualifying’ earnings = total earnings in the band between £5,715 and £38,185 (if earn over £7,336) • Total Earnings include basic salary, commission, bonuses, overtime and statutory Phasing in contributions Phasing to help employers with the extra cost Original Phasing proposal 2012 Jobholder 1% Employer 1% 2013 Jobholder 3% Employer 2% 2014 Jobholder 5% Employer 3% Staging of employers System concerns if 7 million people join day 1 Staged over 36 months Largest employers to go first Staging by employee number Employee No. Staging date 120,000 or more 1 Oct 2012 50,000 - 119,999 1 Nov 2012 30,000 - 49,999 1 Jan 2013 20,000 - 29,999 1 Feb 2013 10,000 - 19,999 1 Mar 2013 6,000 - 9,999 1 April 2013 4,100 - 5,999 1 May 2013 4,000 - 4,099 1 June 2013 3,000 - 3,999 1 July 2013 2,000 - 2,999 1 Aug 2013 1,250 - 1,999 1 Sept 2013 800 - 1,249 1 Oct 2013 500 - 799 1 Nov 2013 350 - 499 1 Jan 2014 250 - 349 1 Feb 2014 240 - 249 1 April 2014 150 - 239 1 May 2014 90 - 149 1 June 2014 50 - 89 1 July 2014 Delayed phasing for early stagers 2012 Jobholder 1% Employer 1% 2013 Jobholder 1% Employer 1% 2014 Jobholder 1% Employer 1% 2015 Jobholder 1% Employer 1% 2016 Jobholder 3% Employer 2% 2017 Jobholder 5% Employer 3% How the numbers work… Max £3,600 pa £38,185 £20,000 £32,470 Salary 8% Total 8% 0 contribution Contribution Total £7,336 £1142.80 Contribution £6,500 £2,597.60 £5,715 What if pensionable pay = basic pay? Total Contribution as a % of Pay Simpler ‘Certification’ of existing contributions Total Pay Total Pay Total Pay Pensionable Pay If more If less than 85% than 85% 7% 8% 9% Option 1 Option 2 Option 3 Consequences of non-compliance • It will be a criminal offence for employer not to: – set up in first place – auto-enrol – re-enrol every 3 years – make an inducement Individuals not just employers • Trustees or managers of pension scheme • Payroll administrators • Accountants • Scheme administrators Fines: £400 Fixed penalty Up to £10,000 per day The ultimate penalty Who will do NEST administration? • Indian Group into: – IT – Communications – Engineering – Materials – Services – Energy – Consumer products – Chemicals • Were they selected or last man standing? • Famous for the cheapest new car in the world Who will do NEST investment? • US Group • 440 Investment Professionals • 28 Worldwide locations • $1.9 Trillion under management No transfers in or out What are the proposed charges? • Annual Management Charge 0.3% • Contribution charge 1.8% • Aim to phase out contribution charge but no details of when • Aim to recoup the est. £600m of running costs over 10 years Other unresolved issues • Transient, seasonal, part-time, students and temporary employees • Affordability • Under current rules many may simply fund their own ‘means tested’ Pension Credit What about the Return On Investment? • Employees might think you are only paying into pension because you have to • Employee appreciation could reduce • ‘Certification’ because what you offer is better than NEST? How do we create and maintain a good ROI? • Internal marketing • Education • Communication • Individual advice • Forecasting and targeting Leads to higher employee appreciation of pension Excellent comms and advice can be expensive How are employers paying for it? • Fees and retainers • Fund based remuneration • Factored fund based remuneration • Combinations of the above The cost and demand for financial advice will increase • NEST will mean increased administration for employers • Higher numbers of employees auto-enrolled will have questions and ongoing queries • Adviser numbers down after 2012? How the Retail Distribution Review (RDR) affects group pensions • Minimum No more factoring of AMC qualifications to cover cost of increased as of enrolment and advice out Jan 2013 from Jan 2013 • Adviser numbers predicted to drop by 2/3rds Shifting Sands Ernst and Young 09 • Too old to make journey? How does factoring work? Year 1 (0.5% of £200pm) = £6 Costs Time Summary • Find out now how your current pension fits with the new rules • Good comms and advice can enhance and maintain high ROI post pensions reform • Early action could save employers huge sums for many years Who is Secondsight? The employee benefits division at • Nationwide coverage • Regulated by FSA • Over 100 independent financial advisers • Approx 100 employees • 13 offices throughout the UK Some existing secondsight clients Recent Awards Not satisfied but ‘delighted’ clients • We have never been sacked • If not delighted do not pay Questions? Thanks from Secondsight • This presentation is for information purposes only and does not constitute advice or a personalised recommendation • The value of investments can fall as well as rise • Past performance is not a reliable indicator of future results • This presentation is based on our understanding of current and proposed legislation, which may change • Tax reliefs are those that apply currently, the value of such reliefs will depend on the circumstances of the plan holder and may be subject to change in the future • What you get back at retirement cannot be guaranteed and will depend on how much you pay in, investment performance and interest rates when you retire • Secondsight is a trading style of Foster Denovo Limited Do you know if you are doing a good job? Lindsay Melvin CIPP How do we define good job? • Working in pairs, consider what good is in your own job and how this: • Is currently measured • How it should be measured • What is hard to measure How do we achieve top quality feedback and ratings? • A robust role specification - role purpose, direct reports, key measurables, principal accountabilities, key knowledge and skills • A sound understanding of the quantifiable activities - KPIs (Key Performance Indicators) • Competencies (see next slide) Competency • A definition “skills knowledge and attributes” • Or in other words: • “behaviours which need to be demonstrated for success” Do you know your KPIs and competencies? • In pairs share your main KPIs and competencies • If your JD or KPIs or competencies needs revisiting then please put this down as an action point to take back to your employer. Set yourself a time line as well! Performance reviews • Research has shown that performance decreases in over a third of cases following feedback. • WHY? – brainstorm ideas Why? • The way the feedback is delivered • There is no follow-up platform How should feedback be delivered? • The room • Preparation on both sides • Should be no surprises • Agree agenda • Agree outcomes • No interruptions • 50:50 approximate speaking split Follow-up • 121s • Regular reviews during the year • Training provided 360 degree appraisals • There are on line tools on the market which work well • Off the shelf tools use well-defined competencies- fine for a first go but then probably need fine tuning • The appraisee chooses several reviewers from each possible group - subordinates, peers, line manager, internal and external stakeholders, etc • The feedback is anonymous and confidential 360 degree appraisals • There is a self-appraisal as well • The tool then looks at areas in need of attention and devises a development programme in conjunction with a coach • CIPP have started using this approach • WCT have used the tool for some time The Strategic aspect • What more added value can I give in my job?....over to Steve What next? How do I put what I have learnt and these tools into practice Lindsay Melvin CIPP Have we covered what we set out to do? Further help: • News on line/payroll professional • Advisory line • Training courses • Qualifications • PQP • Further CPD events • CPD on line • First a little technical knowledge test • Don’t worry we are not sharing this with your employer! • A pass will enable you to commence year 2 of our CIPP foundation degree! YOUR ACTION LIST Please take this opportunity to: • Complete your action list with some timelines • Please remember to complete your online feedback form • Thanks!
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