Tips for company pension schemes

Posted on 20/05/2012 by Business 40

There are a number of things that companies should be doing to make sure that the pension scheme they offer is the best one possible for their employees. The first is to review the scheme that is already in place. Many things have changed for company schemes in recent years and it is important to understand how the current scheme is working.

Those who do not offer a pension scheme should consider setting one up. The regulations are changing so that by October 2017 employers will have to make contributions into a scheme, although this will start out as a smaller amount and be phased in so that it meets the required level by that date. It is important to consider this, as otherwise it could come as a shock to the business. With the change in the regulations it is a good idea to make plans now so that employees will be able to see the benefits.

It is a good idea to consult with an IFA who is prepared to assist with the employees so that everybody involved can have a good understanding of what is required and how it all works. They should also be prepared to meet regularly in order to deal with any issues that they may have. Employees will then no longer see the scheme as a cost but will be able to understand the long-term benefits; additional benefits, such as death-in-service, could also be added. These have not been as popular recently but they are often a good way to offer a new service to staff.

Six steps to take before retirement

Posted on 19/05/2012 by Business 40

Retirement can be a worrying time for many people, particularly during these times of financial hardships. The biggest worry is usually whether there will be enough pension money to live on for the future years. Retirees who have worked all their lives should be able to retire in relative comfort financially. There are several steps that can be taken to ensure that

any pensions will be sufficient to cover future cost of living expenses.

Anyone who has worked all of his or her life will be eligible for a decent state pension. Everyone is entitled to a pension from the state; however, it will depend on contributions made from previous income. The government has a website set up that can help with a state
Be fully aware of how any pension investments are doing. If it is getting close to retirement age and the current pension investments are high risk, high return stocks, it may be wise to change this to more low risk stocks. The returns will be less but there will also be less chance of losing money if those stocks crash just before it is time to sell or withdraw income from them.pension forecast for those who are interested in finding out how much they are eligible to receive. It is also a great way to ensure that enough national insurance has been paid. If not, it may be possible to make up the difference.

Employing the help of an independent financial advisor may be a good idea for those who are unsure how to proceed. They can advise on the best plans to suit each particular need. They can assess current pension plans to work out potential income and advise if an increase in pension payments is needed.

Training courses

Posted on 18/05/2012 by Business 40

Training courses are ideal for anyone who is involved in the MSP programme. The course itself will help candidates to further understand their role in an MSP programme. Candidates will also be able to participate in the MSP process and communications channels. The course lasts just one day and can be used as a taster course for those considering following further training or thinking of gaining qualifications in MSP.

There are several benefits to taking up the one-day course, including helping candidates to achieve a better clarity on the scope of MSP and helping with the understanding of how the programme delivers major changes. As a taster course it can help candidates familiarise themselves with some of the terms that will be used during the MSP course, and will help them to become familiar with the MSP courses’ main components. A clearer understanding of the MSP Process Model can also be gained by taking this one-day taster course.

The course comprises of several components that delegates will be dealing with throughout the day. These include key roles and organisation, leaderships and stakeholder engagement, and management of risk and quality management in a programme, to name just a few.

Companies who require six or more of their staff to have this training can receive discounts on the course fee, and arrangements can be made for the course to be held on company premises if that is preferable. The course can also be tailored to suit a specific need if required.

ASP – what is it?

Posted on 17/05/2012 by Business 40

An ASP is an Alternatively Secured Pension, which works a little like the Unsecured Pension does in that you are allowed to take income from it without the need to buy an Annuity. If you are over 75 the right to take that tax-free lump sum is lost. The tax-free lump sum, also known as the Pension Commencement Lump Sum (PCLS), needs to be taken before then if that is what is required. If not then the balance of the pension, whether it includes the lump sum amount or not, will remain as an investment.

The ASP can be used when over the age of 75 to draw a pension income if no lifetime annuity is wanted. It is also good for those who want a more flexible income than can be achieved through a Secured Pension.

There are several features to the ASP, including a minimum income of 55% of the amount allowed under Unsecured Pension; a maximum income is 90% of the maximum allowable under Unsecured Pension. The income levels have to be reviewed every year and an advisor will calculate the minimum and maximum amount that can be taken. The remaining fund will continue to be invested.

In the event of death while the ASP is being taken then the remaining fund has to be used either to provide the spouse or a dependant over the age of 75 with an income, or if under 75 with an Unsecured Pension, or to provide a charity lump sum death benefit, to name just a few. Any charity lump sum will not be subject to inheritance tax.

Learn how to be a P30 practitioner

Posted on 16/05/2012 by Business 40

P30 is a program which assists senior managers with the decision making process. The programme ensures that individuals and companies are able to establish the structures that they need so that decisions can be made with potential outcomes and issues in mind. As a result it is easier to deliver projects on time, within budget, and with quality still a major consideration. This particular qualification has now been established as an industry standard and is used by corporations all over the world.

The course teaches all the basic principles of P30 and delegates will be able to use all the tools and techniques as well as learning how they can be used together. When in the workplace the principles can be put into practice by determining the right model to be used and putting the principles into practice. Once the course has been taken, delegates can take either the foundation and practitioner examinations or just the foundation level qualification.

Candidates that take part in the course will need to show that they have some experience of working in planning and project management. At least three months is the minimum length of time required in order to understand the principles that are taught on the course. The teaching techniques include supplying pre-course material for the candidates to work through before the four-day classroom-based workshop. The materials have been designed to suit a variety of candidates from a variety of backgrounds. Accelerated Learning techniques have been employed to assist with the learning process.

Advantages and disadvantages of stakeholder pensions

Posted on 14/05/2012 by Business 40

The issue of pensions is something of a minefield. There are so many options available that it can be difficult to know where to begin. One of the most common types of pension that is available these days is the stakeholder pension, but as with all schemes there are advantages and disadvantages, depending upon your circumstances, so careful consideration is needed before a plan is chosen.

Among the advantages of stakeholder pensions is that contributions made to the scheme are eligible for tax relief. The pension fund will grow and will not leave the plan holder with a capital gains liability. The charges involved with stakeholder pensions are often much lower than those which are associated with personal pension plans or pension plans which are self invested. Those who want to stop and start contributions will find that there are no penalties, and the plan can be useful for those who want to retire early. A plan holder can often start with fairly low contributions and any lump sum paid on death is free of inheritance tax. Upon retirement the holder has an option of taking a tax-free lump sum of up to 25% of the scheme value.

The disadvantages of the scheme are usually that investment funds are limited and there are fewer investment solutions than with other types of schemes. Money that has been paid into a scheme cannot normally be accessed before the age of 25, and there is nothing to say that charges will not rise at some point in the future.

Learning to manage successful programmes

Posted on 11/05/2012 by Business 40

Companies that want their programmes to be managed successfully can opt to send managers and other staff on a course for Managing Successful Programmes. The course itself is unique and aimed at developing a best practice framework, although it is very flexible in regard to the needs of the company. Those who study for this qualification can become a registered MSP practitioner and the course is considered to be one of the leading qualifications in this field.

The course is designed to meet the needs of programme managers, directors and office staff, as well as other team members such as auditors and change managers. There are both foundation and practitioner levels available.

Those who take the course will benefit by being able to recognise the need for change management, use the MSP model and apply it to any programme, be able to profile and map out the benefits of any change programme, and prepare the required documentation.

The course itself takes five days and can be delivered either on or off-site, depending upon the number of people who need to take the course and the needs of the company. It can also be delivered in module format if needed. Each delegate will receive the pre-course material to read through before attending the modules, the course book, and sample examination materials. The foundation exam is a multiple-choice exam with 50 questions, and the pass mark is 30. For the practitioner level the exam takes two hours 30 minutes and will have nine questions, with a pass mark of 90.

What is a personal pension plan?

Posted on 10/05/2012 by Business 40

There are many who do not have a personal pension plan, but these should definitely be a consideration as state pensions are very basic and are unlikely to allow a very comfortable retirement. A personal pension plan is a way of saving to add to retirement income; those who save in this way can make use of tax relief on the monies that they pay into the plan, and tax paid on the income is at an attractive rate.

An individual can opt for a personal pension plan that is offered by an employer or simply start one on his or her own. The advantage of taking out a plan individually is that the plan owner chooses the provider, while choice is restricted in a company pension scheme. For every £80 contributed to the scheme £100 is credited, thanks to tax relief. Tax relief is given on contributions of either £3,600 per year or 100% of relevant earnings, although this is limited to £50,000, and this applies to whichever sum is the greater.

Using a company pension scheme is simple as the company does all administration. Employers sometimes make contributions as well, although they are under no obligation. It is the pension provider that claims the tax relief and adds this to the contributions that are made.

There is a wide range of pension funds available to choose from and research will be needed to assess the charges that are made by the provider, as personal pension plans have no upper limit.

Training courses

Posted on 09/05/2012 by Business 40

Prince2 Passport is for those studying the Prince2 Foundation and Practitioner exams via distance learning self-study. For those studying the course it is a way to study in their own time, at their own pace. It means that if some parts of the course need studying a little longer, it is fine to do this. The candidate can take their time to ensure they fully understand the course before continuing on with the next section. The end result is becoming a Fully Certified Registered Practitioner.

The course itself is available as several packages or as a stand-alone CD. The packages include helpful manuals and the examinations. The packages are set using proven and well established accredited materials, and not only do they offer a complete flexible learning programme but also an extremely cost effective solution that can be used by both organisations and individuals who are looking to expand their stills.

The stand-alone CD offers modules that include both Foundation and Practitioner study, and alleviates the need to buy separate software for those who want to study the full course. There are 12 modules on the CD, each with lessons, and there is a helpful video presentation for each lesson. Simulated exams for both the Foundation and Practitioner courses and supporting notes are also offered with the course, which helps to ascertain readiness to take the final exam. There are interactive exercises, which not only make the learning easier but also help to better explain the lessons, giving more chance of exam success.

The benefits of an ISA

Posted on 06/05/2012 by Business 40

There are many benefits to having an ISA, yet many people have not yet bothered. With saving limits increasing each year and the advantages of earning tax-free interest, it is an investment that is worth making, even for those who do not have a lot of money to save. The aim of the ISA originally was to encourage saving. The limit increases may seem to be insignificant but when considered over a period of time they can add up to quite a bit of money, particularly as deposits can be either lump sums or regular contributions, or a combination of both.

They are ideal for cautious investors as there are basic ISA accounts that give a small amount of interest but there is no tax to pay. They are also ideal for those who are trying to create an income for their retirement years. A pension has the disadvantage of being taxed when it is paid out, but those who have an ISA can do some careful planning and maximise retirement income while minimising tax liability.

ISAs are also a great way to save for a child’s education. The cost of a university education is rising and an ISA can be used to create a fund that will give children a good start when they leave home. Investments of ISAs are made in different types of funds to suit the investor, so shopping around should ensure that the investor finds an ISA that suits them and will meet their future requirements.