Flexible Benefits Scheme Pocket Guide Key Features • Open to all UK-based employees of IOP and IOP Publishing, who upon joining us will be given the option to select benefits on a voluntary basis. Following successful completion of their probationary period or 6 months’ continuous service (whichever occurs later), joiners will have funded benefits allocated. • All benefit choices are made online via your own personal flexible benefit account, during the election window. • Benefit choices take effect annually from the 1st of January and are fixed until the 31st of December of that same year*. • Log on to your personal benefits account by visiting www.orbitbenefits.com and entering your unique username and password, which will be e-mailed to you. * During this period, if you have a specified “Lifestyle Event”, you will have the opportunity to review/change your benefits. Under the Flex scheme, “Lifestyle Event” means a significant change in salary or contractual hours; marriage, divorce or separation; death of a spouse or dependant; birth or adoption of a dependant and periods of long-term absence. If your circumstances change due to a Lifestyle Event, then you must provide not less than 1 month’s notice in writing to HR, which may at its sole discretion allow you to amend your choices for the current benefits year. In the case of birth or adoption of a dependant, and the taking of a related period of leave, the amendment of choices may only take place once you have returned from leave. Private Medical Insurance You will receive entitlement to this benefit following completion of your probationary period, or 6 months’ continuous service (whichever occurs later). Private medical insurance is an insurance policy that covers the costs of private medical treatment for you and, if selected, your family and is designed to ensure that members receive prompt, high-quality medical attention when it is required. Key Features In general terms, the insurance covers approved medical, nursing and hospital accommodation expenses within pre-defined limits, terms and conditions. Please visit the Online Benefits website for further details. • Provided by Aviva. • Through the flexible benefit site, you may choose to cover yourself and to include your spouse/partner and/or your children. Before any treatment takes place you should ring the PMI Managed Care helpline on 01606 354007. This service is provided by nurses who will authorise your claim. For further details, please read the information at www.orbitbenefits.com. Pension Contributing to a pension plan is a tax-efficient way of saving for your retirement. It is a low-cost, flexible and portable arrangement, meaning you may retain your plan (subject to the plan rules) if you leave IOP Publishing/IOP. Key Features • All contributions will be paid monthly and calculated against your reference salary (pre-salary-sacrifice salary). • Employee contributions will be made via salary sacrifice, enabling you to take advantage of Income Tax and Employee National Insurance relief on your contributions. There is no limit to the amount that you can contribute via salary sacrifice, although you cannot elect to contribute an amount that would reduce your salary to below the minimum wage. For further details, please read the information at www.orbitbenefits.com. You pay Institute of Total invested Physics pay 3% 10% 13% 4% 12% 16% 5% 14% 19% 6% 16% 22% 7% 18% 25% Group Life Assurance Life assurance offers you peace of mind by providing a lump-sum payment in the event of your death while you are employed by us. Key Features • Benefit is insured with Canada Life. • No joining form. • You can increase your company-funded level, in units of 1x multiple of your reference salary, up to a maximum of 8x reference salary*. • Cover will cease on the day you cease employment with IOP Publishing/IOP or when you reach age 65, whichever is earlier. • Claims will be initiated and managed by the HR Department. • Further information on the scheme and a Beneficiary Nomination Form are available on the flexible benefits site. Please note that, if you join at your first opportunity, you may select any level of cover, up to the maximum of 8x your reference salary. At subsequent renewals (or in the case of a Lifestyle Event, if applicable), you may decrease your level of cover by any number of units, but you may only increase your level of cover by one unit of 1x of reference salary. *Additional cover may be subject to medical underwriting. For further details, please read the information at www.orbitbenefits.com. Dental Insurance Dental insurance is a cost-effective way of managing your dental-care needs. It can assist with the high costs of unexpected or routine treatment by enabling you to claim reimbursement from the insurer for the treatment that you have had carried out. Key Features Supplied by Denplan, the scheme works on a reimbursement basis, providing you with a contribution (subject to the Policy Document and Scheme Rules) towards the cost of NHS or private dental treatment. • Six different plans to choose from, starting from £3.58 per month. • No prior oral health check is required. • Simple claims process. • You can continue with your existing dentist, or choose any other. • Through the flexible benefit site, you may choose to cover yourself and to include your spouse/partner and/or your children. Full details of the different levels of cover available, and any exclusion, are available in the Policy Document, available to download from the flexible benefit site. For further details, please read the information at www.orbitbenefits.com. Childcare Vouchers Childcare vouchers are a convenient and tax-efficient way of managing a wide range of childcare costs, including nannies, after-school care or occasional holiday care. Key Features • By joining the childcare voucher scheme, you will benefit from both Income Tax and National Insurance relief at your highest marginal rate, up to a maximum of £243 per month, or £2,916 per annum. • The table below illustrates the level of Income Tax and employee National Insurance savings available: £243 monthly childcare voucher = £2,916 annual childcare voucher Annual saving Basic-rate Higher-rate example salary of example salary of £20,000 £45,000 NI saving £320 £29 Tax saving £583 £1,166 Total annual saving £903 £1,195 * Please note: above figures are based on tax and NI rates as at 6 April 2009. • Childcare vouchers provide full or partial reimbursement for the cost of childcare for children up to the age of 15 (or 16 if they are disabled). Childcare must be provided by an Ofsted registered or approved carer. • The benefit is provided by Accor Services, which offers a virtual voucher scheme that is accessible via the internet or telephone 24 hours a day, 7 days a week. • If you select this benefit, the vouchers will be credited to your Accor account by pay day in January 2010. For further details, please read the information at www.orbitbenefits.com. Critical Illness Insurance The critical illness policy pays out a tax-free cash lump sum if you are diagnosed with one of the 24 defined critical illnesses, defined within pages 11 and 12 of BUPA’s Critical Illness Technical Guide (held on the Flex website) and survive for 14 days after the diagnosis. The lump sum will be payable only if the insurer accepts the claim, which will be subject to the pre-existing conditions and exclusion under the policy defined within page 10 of BUPA’s Critical Illness Technical Guide. Claims must be made within 3 months of formal diagnosis of the specified critical illness. If you have children, they are also covered automatically at no additional cost for a fixed amount of 25% of your benefit for each dependant child (subject to a maximum of £20,000 per child). Key Features • Benefit is insured with Bupa. • Select cover in units of £25,000, up to a maximum of £500,000. • Cover will cease upon the insured member’s 65th birthday. • Any conditions suffered prior to joining, or at the point of joining the scheme, will automatically be excluded from this cover. If you suffer a critical illness related to such a condition at a later point, you will not be covered for this. Please note that, if you join at your first opportunity, you may select any level of cover, up to the maximum of £500,000. At subsequent renewals (or in the case of a Lifestyle Event, if applicable), you may decrease your level of cover by any number of units, but you may only increase your level of cover by one unit of £25,000. For further details, please read the information at www.orbitbenefits.com. Cycle2Work This offers you the opportunity to participate in the Cycle2Work Scheme, which aims to encourage more environmentally friendly means of commuting to and from work. The Cycle2Work Scheme is open for employees to join the scheme at 2 points in the year (May and December). New joiners will not be able to join the scheme until the next election window (in May or December). This benefit cannot be altered should a lifestyle change occur. Key Features • Hire a bicycle and associated cycling safety equipment from us, free of Income Tax and Employee National Insurance, reducing the retail cost by up to 41%. • Select a voucher worth a maximum of £1,000. • We will pass their VAT rebate back to participating employees, meaning a £1000 voucher, for example, will only cost you £851.06. • Spread the cost over a 12-month period. • No finance charges. • All bikes hired under the scheme come with a 12-month warranty covering faults. Your salary will be reduced by 12 equal monthly instalments, equalling the value of the voucher you have selected, less the VAT saving we pass back to you. From early January 2010, the Cycle2Work scheme will send the voucher to your home address, which will be equal in value to the voucher you selected through the flexible benefit site. This may be redeemed at your selected store. PLEASE NOTE: If you selected a bike in the summer of 2009, through the Cycle2Work scheme, you cannot select a bike until the summer of 2010. For further details, please read the information at www.orbitbenefits.com. Annual Leave Never able to use all of your annual leave entitlement? Or perhaps you’d like to take longer or more frequent breaks? Through the flexible benefit scheme, you may increase or decrease your annual-leave entitlement to suit your individual needs. Key Features • Annual leave year 1 January to 31 December. • Annual leave is accrued on a pro-rata basis, calculated using your first or last date at work, as appropriate, and rounded to the nearest half day. • You may increase or decrease your annual holiday entitlement by up to 3 days, subject to the overall minimum entitlement of 20 days (pro-rata for part-time staff) per benefit year. • The taking of annual leave will continue to be with the agreement of your line manager, who must authorise all annual leave in advance. • Annual leave may only be flexed during the annual election window. Once agreed, your total entitlement cannot be changed at any point during the scheme year. If, upon leaving IOP Publishing/IOP, you have exceeded all accrued annual- leave entitlement, a deduction will be made from your final salary payment for those days taken and not earned. If any annual-leave entitlement is still owed to you, IOP Publishing/IOP may, at its sole discretion, require that it be taken during your notice period or, alternatively, pay a sum in lieu of accrued annual leave. For further details, please read the information at www.orbitbenefits.com. Group Income Protection You will receive entitlement to this benefit after 2 years’ continuous service. Group Income Protection Insurance (GIP) is designed to protect your income in the event of an accident or illness that prohibits you from working. Key Features If you are unable to continue your ‘own occupation’ (see Payment of Benefit below) due to illness or injury for a period exceeding 26 weeks you will receive a continuing income of at least 75% of your base salary (minus the Employment and Support Allowance [ESA]) and subject to the insurer’s acceptance of the claim. • Benefit is insured with Unum. • Cover will cease on the day that you cease employment with the company, or when you reach age 65, whichever is earlier. • GIP is a core benefit provided by the company that you cannot opt out of or flex. No action is required by you to select this benefit. For further details, please read the information at www.orbitbenefits.com. New Joiner Benefits If you join after the annual election window in December, you will be issued with an e-mail confirming your flexible benefit login details. Once you receive the e-mail confirming access to the flexible benefit scheme, you will have a 2-week window to select all voluntary benefits, including the option to make pension contributions. If you do not select any benefits during the initial 2-week window or wish to change your benefits, once you have successfully completed your probationary period (usually 6 months), you will have funded benefits allocated to your Flex account and another 2-week window to select benefits.