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					    NHS BIKES
                    The Cycle to Work Initiative
                  Common Questions and Answers
How is the Cycle to Work scheme run?
The Cycle to Work scheme is run as a fully managed service. You will be allocated a Scheme Manager with
specific NHS experience to guide you through all aspects of implementing the scheme. This means that we
assume responsibility for all of the administration involved and only ask for you to provide direction and make
relevant decisions based on our work. After being commissioned, we will formulate a project plan with you, to
include everything from informing the Inland Revenue to agreeing brochures, employee agreement forms and the
bicycle packages being offered. The success of the initiative relies on many factors, the most important of which is
the marketing and promotion to staff. We don’t underestimate this task and dedicate a lot of time to getting it right
for you.
What administration does the Trust have to consider?
Apart from making relevant decisions and directing our work, there is limited administration involved for the Trust. It
will take approximately six weeks to the launch the Cycle to Work scheme. The main tasks for the Trust are:
•   Distribute marketing literature that we supply (ideally as a payslip attachment)
•   Authorise orders after the scheme has been launched to ensure that only eligible staff receive bicycles
•   Set up payroll reductions for the staff taking part
•   Ongoing management of lease payments

How long is the Cycle to Work scheme run for?
We would recommend that you run the scheme for an initial three week period. This “window” allows a set
timeframe for orders to be received and makes the logistics of delivery easier. It can then be re-opened at any
future period in a similar window, to encompass new bicycle models and new staff. The scheme is run over a loan
period of 12 months making it attractive for staff and minimising any risks to the Trust.
How is the Trust kept up to date with progress?
You will have a direct line to the Scheme Manager at all times.Your Scheme Manager will be in regular contact
throughout the implementation and we will also provide reports outlining the project plan and progress.
How do we send brochures out to staff?
We handle the entire process on your behalf and are flexible to your particular requirements. We also understand
the data protection issues you face and will work with you to overcome them. Staff will be made aware of the
scheme via email, payslip attachment, posters and intranet adverts and a brochure will be mailed to them upon
their request to their home address.
What happens to the employee details for those who make an order?
The details of all staff that have made an order will be held on our database for warranty purposes and kept only
for the duration of the initiative, after which they will be deleted. Whilst on our database, the details will be used for
contact that you are in agreement with. This could be for satisfaction surveys, advice on new products or contact at
the end of the loan period informing staff of the options around purchase or return of their bicycle.
What is the impact on the NHS Pension Scheme?
As the Cycle to Work scheme is run as a salary sacrifice, the amount of pensionable pay decreases by the amount
of the salary sacrifice. This impacts the NHS Pension, as contributions are reduced for both the employee (5% or
6%) and the employer (14%). There is also an impact on Pension and Death in Service benefits as these are based
on pensionable pay. A full analysis of these impacts is included as part of the scheme implementation and staff are
also made aware of any possible implications in the brochure itself.

    Call us now on 0870 609 1114 to see how we can help you
    implement the CYCLE TO WORK scheme in your organisation
                   The Cycle to Work Initiative
                 Common Questions and Answers
How is the Cycle to Work scheme financed?
The Cycle to Work scheme is financed through a lease - the approved leasing arrangements are included as part
of the service. No start up capital is required and all costs are included within the bicycle price.
What is the finance rate of the lease and how is it accounted for?
The finance rate of the lease is typically 7%-9%. The lease can be either a Finance Lease or Operating Lease
depending on your requirements.
What is the legal position with regard to the Employee Agreement?
The Employee Agreement is an extension to the Contract of Employment and provides the authorisation from staff
allowing you to make regular deductions from their salary for the loan of the bicycle. The Employee Agreement is a
Hire Agreement regulated by the Consumer Credit Act 1974 and is approved by the Office of Fair Trading.
How do we find out which members of staff have ordered a bicycle?
Using our secure online authorisation system, you can view and authorise staff who have returned a completed
order form to us. This enables you to control the ordering process and monitor who receives a bicycle. After you
have authorised the orders, we will arrange for delivery. We then send you all the completed Employee Agreement
forms for you to keep in your staff records.
How are staff salary deductions set up?
We supply your Payroll Department with a report detailing payroll deductions for the staff who have received
bicycles. All of the deductions are a fixed amount for 12 months. The deductions are taken from the employee’s
gross salary before Tax, National Insurance and NHS Pension contributions are calculated.
How does the Trust pay for the Scheme?
The Trust will be invoiced monthly during the 12 month term of the scheme on a date that suits you. The payment
for the invoice will come from the monthly deductions from the employee’s salary, making it cash flow neutral. A
small reconciliation will be required within your Finance Department to account for any leavers.
When is the first payment made?
This is a prearranged date agreed between both parties. It is usually during the month following the delivery of the
bicycles and in line with when the first deduction is made from the employees salaries.
Can we implement a Cycle to Work scheme ourselves without any help?
We have specific expertise in providing fully managed services of this type in the NHS. There are many different
facets involved in implementing these schemes and it is quite complex. There is nothing to stop you running a
scheme yourself, but the management of this should not be underestimated. Our scheme takes the resource and
funding burden off you.
Who owns the bicycles?
This depends on the type of financing that is set up for the scheme. With an Operating Lease, the bicycles remain
the property of the leasing company for the duration of the scheme, whereas with a Finance Lease the bicycles will
be the property of the Trust. In our experience, we have found that NHS organisations do not want to administer
the bicycles as part of their assets so opt for an Operating Lease.

  Call us now on 0870 609 1114 to see how we can help you
  implement the CYCLE TO WORK scheme in your organisation
                    The Cycle to Work Initiative
                  Common Questions and Answers
What happens when someone leaves the organisation before the end of the loan?
We will provide you with a Ready Reckoner detailing the amount that needs to be deducted from the final net
salary of the employee. This stipulation is included the Employee Agreement which staff sign when orders are
placed for a bicycle. A check in either HR or Payroll to ascertain whether the employee has a bicycle should be
incorporated into your policy for leavers, to ensure that this is not overlooked.
What if, on leaving, the employee’s final salary does not cover the amount for the bicycle?
It is your decision whether you wish to follow up the debt with the employee, or write it off. We would recommend
making a small provision in the savings you make through employers National Insurance contributions and NHS
Pension Scheme contributions to cover these circumstances. In our experience, this has not been a major concern
and the exposure has been less than 1%.
What happens if the bicycle is stolen from an employee?
As the employee is responsible for all of the payments for the loan of the bicycle as detailed in the Employee
Agreement, it still remains their responsibility to make the payments even if the bicycle has been stolen. This is
made clear to the employee at the outset and they are asked to add the bicycle to their home contents insurance.
With most home insurance policies you will find that a bicycle is already covered. If they do not have a policy, they
are advised to insure the bicycle independently. We can also arrange for theft and damage cover to be purchased
alongside the bicycle for an additional charge, if required.
How much will the Cycle to Work scheme cost us to run?
There are no direct costs associated with the scheme, as we include all of our charges in the price of the bicycle to
the employee.
How much will the organisation save?
You will save up to 23.3% on the value of all bicycles ordered. This is made up of 9.3% savings on National
Insurance and 14% savings on NHS Pension Contributions (not all staff are members of the NHS Pension
Scheme). In our experience, where promotion has been successful, 5% of staff take up the scheme when it is first
offered. For example, an organisation with 2500 staff, 125 orders and an average cost of a bicycle being £500, the
savings could be £62,500 x 23.3% = £14,562 if all the staff remained in the scheme for the 12 month period.
What is the final payment for?
At the end of the loan, the employee has the option to either purchase the bicycle or return it. Whatever their
decision, a nominal sum (usually around 10% of the initial value) is deducted from their net pay. This covers the
purchase of the bicycle or the cost of collecting it.

  Call us now on 0870 609 1114 to see how we can help you
  implement the CYCLE TO WORK scheme in your organisation

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