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    Providing benefits to your teaching staff – part 1

    21 July 2022

    David Taylor

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    2 minute read

    What health and protection benefits should you be putting in place?

    With ever increasing focus on the Teachers’ Pension Scheme (TPS) for independent schools, we at Punter Southall Aspire wanted to share some thoughts on ensuring you provide valuable security to your teaching staff.   

    Whether you’ve already left TPS or its Scottish equivalents or are considering leaving, you need to bear in mind the other benefits that may be required to replace those bundled into the teachers’ pension schemes. 

    In this set of two blogs, our Health & Protection Principal David Taylor looks at what benefits you may want to put in place alongside your new pension scheme, and what they can do for you and your employees even beyond what the teachers’ pension arrangements may provide. You can read part two here.

    Part 1: Group Income Protection and Health Cash Plans
    Group Income Protection (GIP) 

    Group Income Protection (GIP) effectively insures a school’s sick pay policy, providing a percentage of salary to employees absent due to illness or injury after a defined period (3 or 6 months is typical). It enables the school to have market competitive sick pay without the work of either (i) self-insuring from school funds, or (ii) leaving employees to struggle on Statutory Sick Pay (which usually ends after 28 weeks). For staff, GIP provides financial reassurance, and makes them feel their employer is a good place to work whilst simultaneously enabling the school to promote the fact that they care about their staff. 

    In the event that a claim is made, Group Income Protection can also provide a rehabilitation advice and service, helping both the school and the staff member to manage a return to work; early intervention can be vital, and providing additional help and support at the early stages of an employee’s absence can mean they get back to work quicker, resulting in fewer financial worries for them and a valued staff member being able to return to school.  

    There are variables within a GIP policy that can be adapted to suit your school’s particular circumstances and budget, allowing you to differentiate yourself as an employer from the competition.  

    Premiums paid by the school are not treated as a P11D benefit for employees and so GIP does not attract benefit in kind tax.

    Health Cash Plan

    A Health Cash Plan (HCP) covers reimbursement of the cost of a range of medical expenses (up to given limits) eg such as eye tests/optical treatment, dental treatment, physiotherapy, dental treatments, and alternative therapies, etc. It can also feature apps that provide services such as a virtual GP, digital physiotherapy, and AI powered risk assessment for skin spots and moles. 

    In some circumstances a HCP can be tailored to focus on areas of particular interest to your school, for example removing some alternative therapies and improving levels of physiotherapy. Each plan has a range of cover levels, starting from £5 per month per employee; the school can pay a given level and staff can increase the cover level by paying the additional premium themselves, via payroll. Dependants are typically included at no extra cost, up to the age of 21. 

    A Health Cash Plan is typically a widely used benefit that has a high engagement level and value perception by staff.  

    In next week’s blog, look out for more on Employee Assistance Programmes and how you can use a digital benefits platform to provide a customised benefits portal for your staff. 

    If you’d like to discuss your school’s benefit requirements, please get in touch. We’d love to hear from you.


    Please note schemes are subject to terms and conditions and provision of the required data, and there will be underwriting required for some schemes.
     

    Health and protection

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    Whether you’ve already left TPS or its Scottish equivalents or are considering leaving, you need to bear in mind the other benefits that may be required to replace those bundled into the teachers’ pension schemes. 

    Author

    David has been involved in financial services all his career, focussing on the corporate sector since 1995, covering the full range of employee benefits including DB, DC, risk, healthcare, platforms, and wellbeing. He has worked for a number of businesses in roles including Managing Director and COO, and has always maintained active client involvement. He has twice won the Corporate Adviser Firm of the Year award, including the inaugural award in 2008. He is a regular contributor to industry media and awards judge. He has a degree in Classics.

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