flexible benefits

8/8/2019 Flexible Benefits

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Staff

information

Flexible Benefits Plan

June 2010


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1 Introduction 3

2 Whats in the Plan? 73 How do I join the Plan? 10

4 The core benefits 12

5 Holidays 13

6 Pension the money purchase option 15

7 Life Assurance and dependants death-in-service insurance 18

8 Long-term disability 20

9 Private medical insurance 23

10 Accidental death and injury insurance 2511 Optional benefits 27

12 Dental insurance 28

13 Critical illness cover 31

14 Childcare vouchers 34

15 Travel insurance 36

16 General information 38

Contents


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The Financial Services Authority 1999Reissued June 2010


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Introduction1

Flexible Benefits Plan 3

The Flexible Benefits Plan (the Plan) has been developed as part of your

overall remuneration package at the FSA. In line with our vision and values,the Plan aims to provide you with flexibility and choice. Unlike the traditional

way where an employer provides a standard benefit package to staff, flexible

benefits give you and the FSA the opportunity to build the benefits package

that is best for you.

The Plan is open to all permanent and fixed-term employees of the FSA,

including those on probation, (and others at the FSAs invitation). You may

review your benefit choices each year to ensure that they continue to meet

your personal circumstances.

The FSA provides a number of core benefits, which are considered essential

for all staff. Through the Plan you may elect additional coverage for these

benefits, you may also elect additional optional benefits. In addition, there are

a number of standard benefits not included in the Plan, which will also be

provided by the FSA to staff (see pages 8 & 9 for further information).

Each of the benefits available under the Plan (including any enhancement of

core benefits) will be attributed a value (the Flex Value). You will be able to

select benefits under the Plan which have a total Flex Value up to a maximum

figure. This maximum figure will be notified to you and will be called your FlexAccount. If you do not wish to attribute the total Flex Account in selection of

benefits then it will be assumed that you wish to receive a cash sum equal to

the difference. Any such cash sum will be subject to Income Tax and National

Insurance contributions at the appropriate rates.

The Plan will enable you to:

boost core benefits beyond the minimum level and request optional

benefits under the Plan up to the total value of your Flex Account;


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4 Financial Services Authority

ask to receive a cash sum up to the amount of your Flex Account

(less deductions for Income Tax and National Insurance); or

request a combination of the above.

In addition, you may request that your Flex Account be increased to provide

additional benefits. The maximum increase would be an amount equal to50% of your pensionable salary. This would result in your monthly salary

being reduced.

The selections you make under the Flexible Benefits Plan are subject to the

FSAs approval. In most cases the FSA will be able to match your requests,

but the FSA reserves the right to vary your benefit choices.

About this booklet

This booklet explains each of the benefits in turn, outlining the options available,as well as your entitlement to core benefits. The Flex Value attributed to some of

the benefits is age related, so it varies from person to person, as shown on your

personalised Enrolment Form. It is important to read this booklet in conjunction

with your Enrolment Form to ensure that the benefits you want are affordable

and appropriate.

Each section of the booklet includes a number of points to consider when

making your choices. You may only revise your choice once a year, unless

you undergo a major change in your personal circumstances (referred to as a

Lifestyle Change see page 6 for further information), so it is important thatyou choose carefully.

General information about the Plan is provided towards the end of the

booklet. Please note that this booklet contains summaries of each of the

benefits on offer. Before making your benefit choices, you should read the full

terms and conditions relating to specific benefits. Details of these and any

other information regarding the Plan can be viewed on the Connect+ site.

General terms

This booklet aims to be as straightforward as possible, but there are a

number of terms which need to be defined.

Pensionable salary

For the purpose of this booklet, benefit options are based on your pensionable

salary. Pensionable salary is the amount which you earn before any increase or

reduction as a result of the Flexible Benefits Plan. Any future increases in your

pay and benefits, as well as any pension contributions, will be based on this

pensionable salary.


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1 These lifestyle changes must be notified within 60 days from when the change takes place.

Dependant

The FSA Pension Plan provides benefits to your dependant should you

die while an employee of the FSA. For the purposes of this benefit, your

dependant is your spouse, civil partner or any other person (other than

a child) who is financially dependent on you.

Payment of benefits

A number of the benefits are provided through insurance companies. These are:

long-term disability, private medical, accidental death and injury, life assurance,

dependants death-in-service pension, critical illness, dental insurance and travel

insurance. Payment of these benefits will be subject to you fulfilling the

eligibility criteria and rules for claiming specified by the insurer.

Age

For those benefits that are age-related, your age will be taken as at the end of

the Flexible Benefits Plan year (31 May 2011).

Leaving the FSA

All benefits under the Flexible Benefits Plan will cease on the day of leaving

the FSA.

Lifestyle changesNormally you can only amend your choices each year and by one level of

cover only (e.g. to increase Life Assurance cover from 2 to 3 pensionable

salary). You can also amend your choices and increase your cover by a further

level (e.g. to increase Life Assurance cover from 3 to 4 pensionable salary)

following a Lifestyle Change. These are:

Gaining a partner1

Divorce1

Birth or adoption of a child1

Death of dependant

Contractual change in working hours

Change in earnings outside of annual pay review

If you wish to update your selections due to a Lifestyle Event, you should

contact the HR Helpline.


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Whats in the Plan?2


The FSA provides you with a number of core benefits. The Flexible Benefits

Plan allows you to define how you would like to receive your pay and benefitsin addition to your core benefit entitlement. You may choose the level of benefit

which suits your needs. The FSA reserves the right to review and change the

list of benefit options, and the providers of any of the options, from time to

time. Some options may also be withdrawn or restricted as a result of certain

Lifestyle Events.

Cont

All contributions to and benefits from the FSA Pension Plan are subject to ruleslaid down by Her Majestys Revenue and Customs (HMRC). These rules limit the

amount of tax relief you receive on the contributions you or the FSA pay into the

Plan and determine the tax treatment of the benefits you draw from it. If you

exceed the HMRC tax allowances you may be liable for additional tax charges.

Benefit Core entitlement Flexible options

Holiday 23 days (for full-time employees) Up to 38 days (i.e. 15 additional days in 1 day increments)

Money PurchasePension:

Under age 25, 6% of pensionable salary

from ages 25 to 29, 8% of pensionablesalary

from ages 30 to 34, 10% ofpensionable salary

age 35 and over, 12% of pensionablesalary

Additional contributions can bepaid in increments of 1% upto 50% (bearing in mind you canexceed your flex allowance by50% of your salary)

Life Assurance 2x pensionable salary 3x or 4x pensionable salary


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1 Due to the terms of the provider, this benefit is not available for staff on a fixed-term contract.

2 You are not eligible for this benefit if you are already in receipt of a monthly pension from the FSA Pension Plan.

If you do not allocate the whole of your Flex Account to additional benefits,

the FSA will assume that your preference is for the balance to be paid as cash.

Alternatively, you can ask for an increase in your Flex Account by a figure nogreater than 50% of your pensionable salary.

Additional benefits not included in the Plan

In addition to the benefits available under the Flexible Benefits Plan, the FSA

will provide the benefits listed below. You may receive, in accordance with

your Contract of Employment, the following:

Occupational sick pay above the required statutory sick pay level.

Benefit Core entitlement Flexible options

Long-term disability cover(i.e. permanent healthinsurance)1

50% of pensionable salaryafter 26 weeks (notreduced by any additionalState benefit paid)

Additional 10% or 20% ofpensionable salary after 26 weeks(not reduced by any additionalState benefit paid)

Medical insurance Employee Employee, Partner, Children orFamily

Dental insurance N/A Crystal: Employee, Partner,Children or Family

Opal: Employee, Partner, Childrenor Family

Pearl: Employee, Partner, Childrenor family

Diamond: Employee, Partner,Children or Family

Critical illness cover (a lumpsum payment should you bediagnosed as suffering from aspecified critical illness)

N/A 20k, 40k, 60k, 80k, 100k,120k, 140k Employee (withfree childrens cover of 25% ofthe sum assured, up to amaximum of 20,000)

Childcare vouchers N/A 50, 100, 150, 200, 243per month

Travel insurance N/A Employee, Partner, Children orFamily Luxury Worldwide

Accidental death and injury

cover

2 x pensionable salary N/A

Cycle to work There will be an annual entitlementto participate in this plan. Fulldetails are available on theConnect+ site

Dependants death-in-servicepension2

Up to 13 of yourpensionable salary

N/A


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An Employee Assistance Programme, providing confidential advice

and counselling.

Subsidised catering provided on site at 25 North Colonnade.

Health screening a free health assessment that considers your general

health and lifestyle.

Season ticket loans (up to the value of 5000 per annum) interest free

loans to cover quarterly, six monthly or annual season tickets are available

to all permanent employees.Application forms are available on the Forms

site on Connect+. If you are in your probationary period, you may apply for

a season ticket loan, but you are restricted to purchasing a ticket for the

duration of your period of probation.

Interest free loans (up to the value of 5000 per annum) are available to

staff to cover the purchase of a bicycle for use on their journey to work.Loans can be repaid over 3, 6 or 12 months. Application forms are

available on the forms site on connect(+). If you are in your probationary

period you may apply for an interest free loan to cover the purchase of a

bicycle for use on your journey to work, but you are restricted to repaying

the amount of the loan during the balance of your probation period.

These benefits are not provided through the Flexible Benefits Plan because

the FSA wishes to give equal access and cover to all staff. It would also

not be appropriate to provide some of these through a Flexible Benefits

Plan. The FSA may withdraw, replace or vary these benefits at any time.Further information on these benefits can be obtained from the HR Helpline.


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How do I join the Plan?3


On joining the FSA you will receive an illustrative Enrolment Form (along

with your Contract of Employment) showing your Flex Account and theoptions available to you in addition to your entitlement to core benefits.

The table shows you how to join the Plan:

Process Notes Example (all figures stated ona monthly basis)

Receive an illustrative formshowing your Flex Accountand the flex value of eachbenefit option and link to

booklet. It is important youread this information priorto joining

Your Flex Account representsthe value of a package ofbenefits over and above thecore benefits. It is calculated

on an individual basis,depending on age, job leveland salary

A N Other, Age 33,salary 2,083.33

Monthly Flex Account Figure128.67

Decide whether to join theFSA Pension Plan

If you decide not to join theFSA Pension Plan you will losethe FSA contributions

A N Other chooses to join the FSAPension Plan but does not askthe FSA to make any additionalpayment

During your first week at theFSA you will receive an emailinviting you to select yourbenefits

Allocate your Flex Account tothe additional benefits andlevel of cover you require remember, your Flex Accountmay not cover all you want

You may elect to increase yourFlex Account with a figure nogreater than 50% of yourpensionable salary

A N Other chooses:

3 additional holidays24.04

partner medical insurance

74.79 critical illness cover 60,000

9.60

Not chosen


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If you do not make elections, the FSA will assume that you wish to receive

a cash sum and no benefits (other than the core benefits). The cash sum

will be paid monthly through the payroll.

Once you have selected your benefits and level of cover, and your choice(s)

has been authorised by the FSA, you will normally only be able to change

your selection at the beginning of the following Flexible Benefits Plan year,or earlier if you have a Lifestyle Change.

The Flexible Benefits Plan will be run on an annual basis from 1 June to

31 May.

Temporary absence should you be absent for an extended period, the

benefits which you have chosen under the Flexible Benefits Plan may be

reviewed. You will be notified if this affects you.

Process Notes Example (all figures statedon a monthly basis)

When you have made yourselections, and entered thedetails of any dependantsyou wish to cover, click onnext and your choices willbe submitted

You are not required to allocateyour entire Flex Account tobenefits. If you do not, it willbe assumed that you wish anybalance to be paid through thepayroll in equal monthlyinstalments and will be subjectto Income Tax and NationalInsurance contributions at theappropriate rates

Monthly Flex Account Figure128.67

Less:

Flex Value of benefits applied for108.43

Monthly cash sum20.24

Shortly after submitting yourelections, you can view yourconfirmed benefit selections.It will constitute part of yourEmployment Contract with

regard to pay and benefitsuntil the effective date ofyour next enrolment period

The FSA reserves the right tovary any choices you make.However, your wishes willalways be taken intoconsideration and the FSA

decision will normally be thesame as yours


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The core benefits4


The FSA provides you with a number of core benefits which it believes all

staff should have as a minimum.

The Plan allows you to:

boost the level of your core benefits;

select some of the optional benefits allocating a sum of up to 50%

of your pensionable salary for more benefits if you choose; or

choose a combination of the above.

Should there be any balance remaining on your Flex Account, it will be

assumed that you wish to receive a cash sum equal to the balance through themonthly payroll in which case it will be subject to Income Tax and National

Insurance contributions at the appropriate rates.

You may review your choices at the beginning of each Flexible Benefits Plan

year, or earlier if you have a Lifestyle Change.


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Holidays5


You may select the number of holidays you would like above a core level.

You can change your selection each year to suit your plans.

Core level

Holiday is a core benefit you must take 23 days per year if you are a full-time

employee. Part-time staff will have a pro-rated core holiday requirement.

Options

You may request that your holiday allowance is increased to up to 38 days

holiday in one day increments.

Flex Value

The Flex Value of any additional holiday option is shown on your

Enrolment Form.

Benefit terms

The FSA requires all staff to take 10 consecutive days holiday in any one Plan

year. You should try to take all your holiday in the holiday year. However, it is

recognised that this is not always possible, so the carrying forward of holidayentitlement is permitted. There is no actual limit to the amount of holiday you

can carry forward, providing your total entitlement for the following year

does not exceed 38.

If you join the FSA in the middle of a Plan year, your holiday options will be

calculated as a pro-rata amount, based on an annual number of up to 15

additional days. The Flex Value of additional days will also change if you join

the Plan mid year. Your Enrolment Form will show the monthly figure for

each additional day.


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When choosing additional days in the middle of the Plan year, you should be

aware that your Enrolment Form will show the cost of purchasing the actual

number of days available for you to purchase based on the number of months

remaining in the Plan year.

The table below shows you the number of days available to you based onjoining on the 1st working day of the month.

If you join after the 1st working day of the month, you will receive holiday for

the month you join as set out in the table below plus the core allowance

shown above from the 1st of the following month.

For example, if you join the FSA on 12th November, your total core allowance

will be 12.5 days. This is based on receiving 1 day from 12th to 30th November

and 11.5 days from 1st December to the end of the following May.

Taxation

Holidays are not currently subject to Income Tax or National Insurance.

THINGS TO THINK ABOUT

Do you need extra holiday due to personal circumstances or family

commitments?

Are there any other benefits that you feel would be of more use to you?

Date of joining Additional core amount

2nd to 10th (inclusive) 1.5

11th to 20th (inclusive) 1

21st to end of month (inclusive) 0.5

Core Days Additional days to be purchased

1-Jun 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1-Jul 21.5 1 2 3 4 5 6 7 8 9 10 11 12 13 14

1-Aug 19.5 1 2 3 4 5 6 7 8 9 10 11 12 13

1-Sep 17.5 1 2 3 4 5 6 7 8 9 10 11

1-Oct 15.5 1 2 3 4 5 6 7 8 9 10

1-Nov 13.5 1 2 3 4 5 6 7 8 9

1-Dec 11.5 1 2 3 4 5 6 7 8

1-Jan 10 1 2 3 4 5 6

1-Feb 8 1 2 3 4 5

1-Mar 6 1 2 3 4

1-Apr 4 1 2 3

1-May 2 1


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Pension the MoneyPurchase option

6


Membership of the Money Purchase section of the FSA Pension Plan is

voluntary. Contributions to the Plan are paid via the Flexible Benefits Plan.In addition to your core pension benefit entitlement, you will be given the

option to increase the contribution level through the Flexible Benefits Plan.

If you choose to join the Money Purchase section of the FSA Pension Plan,

the FSA will contribute between 6% and 12% of your pensionable salary

(depending on your age). You will lose these contributions if you elect not

to join the FSA Pension Plan.

You have the option through the Flexible Benefits Plan to request the FSA

to change the level of contribution within the prescribed limits each year

to suit your needs. The Pension Plan offers flexibility by providing a range of

investment options for you to choose from. Full details of how the Pension Plan

works, and the investment options available, are provided in a separate booklet

entitled FSA Pension Plan Money Purchase Section Members Booklet. You

can view a copy of this booklet on Connect+ at Employee guidance>

Performance pay & benefits>Pensions.

Core level

Pension is a core benefit the minimum level of contribution paid dependson your age at the beginning of each month:

for staff below age 25 the FSA will pay 6% of your pensionable

salary; and

for staff age 25 to 29 the FSA will pay 8% of your pensionable salary,

for staff age 30 to 34 the FSA will pay 10% of your pensionable salary,

for staff age 35 and over the FSA will pay 12% of your pensionable salary.

Full details of your core level are given on your Enrolment Form.


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Options

You may request that the FSA makes extra contributions on your behalf by

sacrificing part of your Flex Account. These extra contributions must be made

in increments of 1% of your pensionable salary up to 50% (bearing in mind

you can exceed your flex allowance by 50% of your salary):From 1 June 2010 the FSA will share its National Insurance savings on those

Pension contributions with the individual who makes them.

You may also choose to increase your benefits further at retirement by

paying contributions of your own (known as Additional Voluntary

Contributions AVCs).

Flex Value

The Flex Value of increasing the FSAs pension contributions is shown onyour Enrolment Form.

Benefit terms

The FSA Pension Plan is contracted in to the State Second Pension (S2P).

This means that you will accrue additional state pension while in the scheme

through your national insurance contributions. You are able to contract out of

S2P on an individual basis, if you want to look into this option please contact

Human Resources.

The Money Purchase Section of the FSA Pension Plan is open to all permanent

and fixed-term employees aged 16 and over.

If your 25th, 30th or 35th birthday falls in the middle of a Flexible Benefits

Plan year, the FSA will increase the contributions to the relevant level from

the month following your birthday.

Taxation

Providing you do not exceed the HMRC tax allowances, you are not taxed

on the contributions the FSA makes for your benefit. Any retirement benefits

received as pension will be subject to Income Tax.


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When do you plan to retire?

Have you thought about how much you need to save for retirement?


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Life Assuranceand dependantsdeath-in-service insurance

7


1 This amount includes the capitalisation figure for the dependants death-in-service benefit.

In the event of your death while an employee of the FSA, a lump sum payment

will be made. In addition, a dependants pension of up to 1/3 of yourpensionable salary will be payable for life (together with childrens pensions).

Core level

Life Assurance is a core benefit, set at 2 x your pensionable salary.

Options

You may request that cover is increased to 3 x or 4 x your pensionable salary.

Flex Value

The Flex Value of buying Life Assurance cover varies with age. The Flex Value

of cover over and above the core level is shown on your Enrolment Form.

Benefit terms

If you are a permanent or fixed-term employee you are covered for Life

Assurance as soon as you join the FSA even though you may not be

immediately eligible to join the Flexible Benefits Plan (see Page 5), provided

that you are actively at work on that day (i.e. not absent due to illness orinjury). If you are absent on the effective date of cover, you will not be covered

until you return to work. When you join the Plan, you will not be asked to

provide a medical reference, unless the total value of your combined cover for

Life Assurance and dependants death-in-service is above 1,250,000.1 If you

earn over 138,000, you will be required to provide evidence of health. The

flexible benefits team will contact you if you are affected by this rule. If your

pensionable salary increases, so that cover exceeds 1,250,000, you will be

asked to provide evidence of health. In these circumstances the insurer reserves


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the right to decline cover, or offer cover at special rates, subject to the medical

reference obtained. If the cover is offered on special terms, you may be required

to pay an additional contribution.

If you wish to increase your Life Assurance cover in the future, you must be

actively at work (i.e. not absent due to illness or injury) on the effective date ofthe increase i.e. the first working day of the month following the election. This is

an insured benefit and the cover is subject to the insurers terms and conditions.

Life Assurance is provided through a trust. In the event of your death while an

employee of the FSA, your benefit will be paid to your beneficiaries or estate.

You can nominate your beneficiaries by completing an Expression of Wish

Form (which can be found on the forms site on Connect+). Payment will be

made at the Trustees discretion (to ensure that it is free of Inheritance Tax),

but your wishes will always be taken into account.

Life Assurance cover is provided to all permanent and fixed-term employees

up to age 65. After your 65th birthday, cover is subject to underwriting, due

to the terms of the insurer. The flexible benefits team will contact you if this

affects you.

Taxation

This benefit is not subject to Income Tax or National Insurance contributions.

If the benefit paid on your death exceed the HMRC Standard Lifetime

Allowance then a tax charge will be payable by the beneficiary.


Do you have Life Assurance from another source?

Who should be your beneficiaries?

your partner

your children under 18 years of age and those who are still in

full-time education

any person who is financially dependent on you?Do you have:

other sources of income for the future

dependants who need financial help if something happens to you

debts that might become someone elses responsibility if you die?


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Long-term disability(Permanent healthinsurance)1

8


1 Due to the terms of the provider, this benefit is not available for staff on fixed-term contracts.

2 Subject to the limit described in Benefit terms.

This benefit provides financial protection for you in the event of a long-term

absence from work due to illness or injury. The Core Cover of 50%2

pensionablesalary comes into effect after 26 consecutive weeks of absence from work.

Core level

This is a core benefit, set at 50%2 of your pensionable salary after a deferred

period of 26 weeks.

Options

You may request that cover is increased by an additional 10%2 or 20%2

providing a total benefit of 60%2 or 70%2 of your pensionable salary after

a deferred period of 26 weeks.

Flex Value

The Flex Value of cover over and above the core level is shown on your

Enrolment Form.

Benefit terms

Long-Term Disability benefit is payable to you if you are unable to continueworking due to illness or injury. This benefit comes into effect after 26

consecutive weeks of absence from work. Before that time in accordance with

your Contract of Employment you may receive occupational sick pay. You

should note that Long-Term Disability benefit is an insured benefit and payment

is subject to your claim meeting the requirements of the insurance company.


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Flexible Benefits Plan

The benefit you receive from this insurance will not be reduced by any State

benefit you may receive for long-term absence. However, the actual benefit

payable will be subject to a maximum of 75% of income less the long-term

State incapacity benefit payable to a single person (4,752.80 for the tax year2010/2011). In addition, there is an overall maximum benefit payable of

300,000 a year.

If you are absent from work and receiving Long-Term Disability payments, the

FSA will also continue to pay your core and flex pension contributions and

maintain National Insurance contributions for as long as you remain an

employee of the FSA. Core and flex pension contributions will be based on your

pre-disability pensionable salary.

You will be covered under the Long-Term Disability plan as soon as you join

the FSA even though you may not be immediately eligible to join the Flexible

Benefits Plan. To receive cover under the Long-Term Disability scheme you

must have been actively at work on the day the cover commences . To receive a

benefit under the scheme, you must have been absent for a continuous 26 week

period and meet the insurers terms and conditions for payment. If the total

value of your cover exceeds 120,000 a year you may be asked to provide

evidence of health. In these circumstances the insurer reserves the right to

decline cover, or offer cover at special rates, subject to the medical reference

obtained. If the cover is offered on special terms, you may be required to pay

an additional contribution.

If you increase your cover in the future, or if your pensionable salary increases so

that your cover exceeds 120,000 a year, you will be asked to provide evidence

of health. Any increase will also be subject to you being actively at work as above

(i.e. not absent due to illness or injury) on the effective date of the increase.

This is an insured benefit and the cover and payment of benefit is subject to the

insurers terms and conditions.

Payment of this benefit will continue until recovery, death or normal retirement

age (65).

Long-Term Disability cover is provided to all permanent FSA employees up to

age 65. After your 65th birthday, you will cease to be covered by this benefit,

due to the terms of the insurer. The flexible benefits team will contact you if

this affects you.

Long-Term Disability cover ceases on the day you leave the FSA, unless the benefit

is already in payment, in which case arrangements may be made for continuing it.


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Taxation

If you select this benefit, you will not be liable to pay Income Tax or National

Insurance contributions on the Flex Value shown on your Enrolment Form.

However, if you receive income through this benefit, it will be treated as salary

and will be subject to Income Tax and National Insurance contributions.If you leave the FSA, and the benefit is already in payment, the benefit may

continue to be paid directly to you, at which point it will be subject to

Income Tax.


Do you have cover from other sources?

If you are unable to work due to illness or injury, do you have other sourcesof income to support you and your family until you recover?

Do you have dependants who would need financial support if you were

unable to work for an extended period?


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Private medical insurance9


1 Covers dependant children up to age 21, or 24 if in full-time education.

This benefit provides reimbursement for the cost of medical treatment for

you as an individual. It covers the cost of outpatient and inpatient treatment,received in private care, up to defined limits. It also provides a cash benefit for

treatment received in NHS care. You join the Private Medical Insurance Scheme

as soon as you join the FSA even though you may not be immediately eligible

to join the Flexible Benefits Plan.

Core level

This is a core benefit, set at individual cover (see Benefit terms for further detail).

Options

You may request that cover is increased to:

obtain cover for other members of your family as follows:

you and your partner

you, your partner and your dependant children1

you and your dependant children1

Flex Value

The Flex Value of cover over and above the core level is shown on your

Enrolment Form.


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Benefit terms

This benefit will provide a refund of any outpatient treatment or investigations,

as well as any inpatient treatment and accommodation (received in private

care at one of Bupa Partnership Network Hospitals) up to defined levels.

The benefit also provides a National Health Service cash benefit of 100 pernight, up to 35 nights per person per year. This cash benefit is available when

eligible treatment is obtained from an NHS hospital instead of a private hospital.

You should note that Private Medical Insurance is an insured benefit and is

subject to the insurers terms and conditions. Some medical conditions will not

be covered and details of these are available from the insurers.

Upon joining the Plan you will not be asked to provide a medical reference.

If in the future you waive this benefit or remove dependants from the

insurance, there will be a waiting period of two years before you can resumeyour cover or re-enrol your dependants.

Private Medical Insurance is the only core benefit that is subject to Income

Tax. If you receive comparable medical cover elsewhere or object to private

medical care, you may choose to waive this benefit. In such cases you should

note your wish to waive this benefit on your Enrolment Form.

Taxation

Private Medical Insurance is treated as a Benefit-in-kind for tax purposes,which means that you will be liable to pay Income Tax, but currently not

National Insurance contributions, on the cost of the benefit. Because this

benefit is subsidised by the FSA, the cost on which you are taxed will be

greater than the Flex Value specified on your Enrolment Form and is shown as

a note on your payslip.


Do you have eligible dependants who require coverage?


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Accidental death andinjury insurance

10


Should you die or be seriously injured in an accident while an employee of the

FSA, you or your dependants will receive a lump sum payment. The actualamount received will depend on the nature, seriousness and circumstances of

your accident. This payment will be made in addition to any Life Assurance

cover that may be paid.

Core level

This is a core benefit, set at 2 your pensionable salary.

Benefit terms

You will be eligible to receive Accidental Death and Injury benefits as soon as

you join the FSA even though you may not be immediately eligible to join the

Flexible Benefits Plan. The benefit will be payable to you, in the case of an

accident, or to your beneficiaries should you die.

You can nominate your beneficiaries by completing an Expression of Wish

Form (which can be found on the forms site on Connect+). Should you die,

payment will be made at the FSAs discretion (to ensure that it is free of

Inheritance Tax), but your wishes will always be taken into account.

The amount paid will depend on the seriousness of your injury themaximum amount (i.e. 2 pensionable salary) may be payable for death

and the following accidental injuries:

permanent loss of a limb or sight in one eye

permanent loss of two or more limbs or sight in both eyes

permanent total disability

permanent loss of speech

permanent loss of hearing in both ears


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A reduced amount of 25% of the cover may be payable should you sustain

permanent loss of hearing in one ear.

If your accident occurs on a scheduled or non-scheduled flight, the amount

payable could be limited if a number of staff are affected.

Taxation

If you suffer permanent total disability due to a work related accident, the

benefit will be paid tax-free. All other payments under this insurance will be

subject to Income Tax. If you die, a tax-free lump sum will be paid to your

beneficiaries at the FSAs discretion.


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Optional benefits11


You may not choose these benefits until you are eligible to join the Flexible

Benefits Plan.

The following benefits have no core level you may choose the benefits and

levels of benefit which best suit your needs.You can request optional benefits in

the same way as requesting additional benefits above the core entitlement. The

FSA has used its buying power to negotiate preferential rates for the optional

benefits. The Flex Values of each are provided on your Enrolment Form.

You may review your choices at the beginning of each Flexible Benefits Plan

year, or earlier if you have a Lifestyle Change.


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Dental insurance12


1 Covers eligible dependants up to age 18, or 23 if in full-time education.

This benefit provides cover against the cost of certain types of dental

treatment. Benefits are provided through an insurance policy and you maychoose the level of cover that is most appropriate for you.

Options

There are four levels of cover provided through the Plan:

Crystal designed to cover NHS-scale charges up to an annual maximum

of 800 for routine treatment

Opal designed to reimburse lower level private fees, up to an annual

maximum of 1,000 for routine treatment

Pearl designed to cover charges of mid-scale private dentists, up to a

maximum of 1,500 for routine treatment

Diamond designed to cover charges of higher rate private dentists, up to

a maximum of 2,000 for routine treatment

You may request cover at either level for:

yourself only

you and your partner

you, your partner and your children1 or

you and your children1

Flex Value

The Flex Value of different levels of cover is shown on your Enrolment Form.


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Benefit terms

The three options allow you to claim for any necessary treatment purely

cosmetic work, or any treatment not available under the NHS, is excluded.

Treatments for which you may claim include:

preventative examinations, X-rays and scaling

minor fillings and extractions

major crowns, bridges and dentures

In addition, you may claim for:

emergency treatment overseas

sports injury treatment

orthodontic treatment for children

Both plans reimburse in accordance with a benefit schedule, a summary of

which is given below. The complete schedule is available on the flexible

benefits pages on Connect.

Taxation

This benefit is treated as a Benefit-in-Kind and is subject to Income Tax, but

currently not National Insurance contributions, on the Flex Value specified

on your Enrolment Form.

Treatment Crystal Opal Pearl Diamond

Maximum reimbursement per treatment ()

Examinations 6.10 18.80 20.30 31.90 34.50 45.00 46.00 65.00

Xrays(max 4 per year)

4.00 9.20 5.90 15.60 7.70 22.00 9.40 35.00

Scalings(max 2 per year)

9.50 24.00 38.50 49.50

Fillings 9.90 13.00 20.70 27.50 31.50 42.00 44.10 57.80

Root treatments 26.50 64.40 57.30 123.00 115.00 235.00 195.00 305.00

Crowns 13.90 95.10 27.60 198.10 41.20 330.00 56.70 425.00

Bridges 47.00 93.10 100.80 193.40 154.50 293.60 180.30 440.40

Extractions 10.80 28.20 26.00 47.60 50.00 67.00 65.00 100.50

Dentures 81.30 161.70 161.70 274.00 242.10 386.30 252.40 463.50


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Does this provide the kind of cover you require?

Do you or your dependants require dental coverage?

Does your partner have coverage available to you and your family?If you already use a private dentist, how do the charges compare?

Do your children already receive free dental treatment under the NHS?


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Critical illness cover13


This benefit provides a tax-free cash sum if you are diagnosed as suffering

from a specified critical illness or become totally and permanently disabledfrom carrying out any occupation before normal retirement age (65) while an

employee of the FSA. Benefits are provided through an insurance policy and

you may request the level of cover you would like.

Options

There are seven levels of cover:

20,000

40,000

60,000

80,000

100,000

120,000

140,000

all these include additional free childrens cover worth 25% of the sumassured (subject to a maximum of 20,000).

Whether or not you apply for this benefit, you may receive occupational

sick pay, in accordance with your Contract of Employment, and will still

be eligible for Long-Term Disability cover.

Limitation of cover

If your pensionable salary is less than 20,000 you will not be able to select

cover that is more than 4 your salary. For example, salary 12,500 (4

12,500 = 50,000. Options available 20,000 or 40,000.


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1 No benefit will be payable for Total and Permanent Disability if the disability is directly or indirectly a result ofinfection by AIDS, HIV or any similar or related condition.

Flex Value

The Flex Value of this benefit is shown on your Enrolment Form.

Benefit terms

Critical Illness benefit is payable on survival, for a period of 30 days, followingfirst diagnosis of one of the following specified critical illnesses:

Aorta graft surgery

Loss of hearing, limbs, sight or speech

Alzheimers disease

Benign brain tumour

Blindness

Cancer

Coma

Coronary artery bypass surgery

Deafness

Heart attack

Heart valve replacement or repair

Kidney failure

Major head trauma

Major organ transplant

Motor neurone disease

Multiple sclerosis

Paralysis Parkinsons disease

Stroke

Third degree burns

Total and permanent disability1

Each insured condition has a medical definition that needs to be met before

benefit can be paid.

The benefit will be payable if you survive for a period of 30 days after initial

diagnosis, or six months in the case of total and permanent disability or paralysis.In the event of a claim you should notify the FSA within 21 days of the diagnosis.

Cover of 25% of the sum assured (subject to a maximum of 20,000) is

provided for your children, aged between 3 years and 18 years (21 if in

full-time education), who suffer any of the above conditions provided the

definitions for payment are met. This cover is included in the terms of the

benefit and does not cost extra to provide.


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Important please read: This cover is an insured benefit and subject to the

insurers terms and conditions. Cover is provided without the need for medical

reference however it is automatically subject to the following exclusions:

No benefit shall be paid for any critical illness, which you have suffered

from prior to the inception of cover, which is a pre-existing condition orfor which benefit has been received. For the purpose of this exclusion,

some illnesses are treated as the same e.g. heart attack and stroke.

If you have previously suffered any critical illness, no benefit will be

payable under the total and permanent disability definition.

No child benefit will be paid for any condition that the child suffered from

prior to the start of cover for that child.

In addition, no benefit is payable for any critical illness occuring within

two years of you becoming covered (or the date of inclusion in the policyif later) which, in the opinion of the medical adviser nominated by the

insurance company, has resulted either directly or indirectly from any

condition from which you have received treatment for, suffered

symptoms of, asked advice on or was aware existed at, or prior to

becoming a member.

It is important that you understand these exclusions as they may prevent

benefit from being paid to you. The exclusions apply equally to any increase

in cover you take.

Taxation

This benefit is treated as a Benefit-in-Kind and is subject to Income Tax, but

currently not National Insurance contributions, on the Flex Value shown on

your Enrolment Form. The lump sum paid will not be subject to Income Tax.


If you become critically ill, do you have other sources of income to supportyou and your family?

If you become permanently unable to work do you have any other sources of

income to support you and your family?

Do you have dependants who would need financial support if you were

unable to continue working for an extended period?


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Childcare vouchers14


This benefit provides childcare vouchers, which can be used as part of full

payment for the care of children up to 14 years old. You can choose anyapproved or registered childcare (see list in Benefit Terms).

Options

You may request vouchers up to the value of 50, 100, 150, 200, 243

per month.

Flex Value

This benefit will be given a monthly Flex Value and this is specified on your

Enrolment Form.

Benefit terms

On joining you will receive a membership pack at your home address. The

pack will contain your unique account number and gives the details of the

telephone service and internet site for making payments to your carer, along

with the full information on the service provided.

The service works like a bank account, each month, the FSA will transfer your

selected amount to your account. The funds will then be available for you topay your childcare provider directly into their account. For ease, a standing

order facility is available which will automatically transfer a set amount each

month on a date specified by you.

Further information on this benefit can be found on the Flexible Benefits

pages on Connect(+).


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1 Childcare provided in the childs own home will not qualify if the person approved to give that childcare is a relativeof the child.

Childcare vouchers can be used as part or full payment for care provided by

approved or registered carers only, such as:

Registered childminders/nannies, nurseries and play schemes

Out of hours clubs on school premises run by a school or local authority

Childcare schemes run by school governing bodies under the extended

schools scheme

Childcare schemes run by approved providers, for example, an out of

school hours scheme or a provider under a Ministry of Defence

accreditation scheme

Childcare given in the childs own home by a person approved1 to care for

your child or children

Childcare given in the childs own home by a nurse from a registeredagency who cares for your child or children

Registered private nurseries and nursery groups

Although this benefit ceases on the day you leave the FSA, any childcare

vouchers you already have in your account will still be valid.

Taxation

All childcare vouchers options are not subject to Income Tax or National

Insurance contributions.


Do you have any children or are you expecting a child within the flex-plan year?


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1 Covers children up to age 18, or 22 if in full-time education.

This benefit provides cover for family holiday travel, and includes cover for

winter sports, medical costs, loss of property and delay in travel plans. It is inaddition to business travel cover, which will be provided by the FSA. You may

choose the level of cover you would like.

Options

You can request one of four levels of cover:

Worldwide Employee only

Worldwide Employee and Family1

Worldwide Employee and Children1

Worldwide Employee and Partner

Flex Value

The Flex Value of providing the different levels of cover is shown on your

Enrolment Form.

Benefit terms

Travel insurance cover includes:

Unavoidable cancellation of trip

Delay in travel plans

Missed departure

Medical expenses and personal accidents

Loss of, or damage to, personal property

Legal expenses

Travel insurance15


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This benefit covers any number of trips in one year, subject to a maximum of

45 days for any one trip (21 days for winter sports).

Taxation

This benefit is treated as a Benefit-in-Kind and is subject to Income Tax, butcurrently not National Insurance contributions, on the Flex Value specified on

your Enrolment Form.


Does this provide the kind of cover you require?

Does your partner have coverage available to you and your family?

Do you know how much you spent on travel insurance last year? If so, howdoes it compare with the Flex Value of this insurance?


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General information16

The Flexible Benefits Plan booklet is not incorporated into your Contract

of Employment and does not form part of your terms and conditionsof employment.

The information held by the FSA will be passed to and used by the product

providers in the course of preparing and implementing your choices.

The 1998 Data Protection Act protects information relating to your employment,

which is held by the FSA on computer and in paper records; it also sets

standards for how that data may be used. This also applies to any information

we pass to the benefit providers. Data relating to your pay and benefits will

only be held if required and will not be disclosed to any other parties.

The FSA hopes to continue the Plan indefinitely and to add other benefits as

and when appropriate. It must, however, reserve the right to modify, suspend

or discontinue the Plan, or any of the benefits within the Plan, by giving notice

to those employees then participating in, or eligible for, the Plan if future

conditions require such action.

Some of the benefits supplied through the Plan are insured. These benefits will

be subject to any restrictions or other terms and conditions imposed by the

insurance company. You should read the full terms and conditions relating to

specific benefits. Furthermore, as has already been mentioned, the choices youmake under the Plan will be subject to the approval of the FSA. In most cases

it is expected that the FSA will match your preferences, but the FSA reserves

the right to vary any choices you may make.

Taxation

Generally, the value attributed to a particular benefit is the cost to the FSA of

providing that benefit. It is this amount which is subject to Income Tax which

will be collected through the payroll on a monthly basis.


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Some of the benefits within the Plan are non-taxable under current legislation.

These are:

Life Assurance

Long-Term Disability

Pension (subject to HMRC rules)

Holiday

If you were to buy equivalent benefits out of your taxed income, the cost to

you would almost certainly be significantly more expensive. The cost of

buying the remaining benefits within the Plan is treated for tax purposes as a

Benefit-in-Kind. This means a cash value is assigned to the benefit, which is

treated as taxable income. These benefits are:

Private Medical Insurance

Dental Insurance

Critical Illness Cover

Travel Insurance

Please note that under current legislation all of the above benefits, if

chosen, will not attract National Insurance. This means that if your earnings

would not otherwise exceed the National Insurance limit (43,875 for the tax

year 2010/2011), taking these benefits could reduce your National Insurancecontributions.

The information on tax provided in this booklet is based on the law in force

at April 2010. The law may change at any time. The information in the

booklet is only a summary and cannot be seen as a substitute for obtaining

professional tax advice with regard to your own personal circumstances.


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The Financial Services Authority

flexible benefits

Documents