Swiss Life Network Newsletter
Transcripción
Swiss Life Network Newsletter
Swiss Life Network Newsletter September 2010 Partner News I Country Dear Reader As a global organisation we are totally focused on our customers and business partners. We are dedicated to meeting your global employee benefit needs and to achieving win-win solutions for you and your providers, consultants, and consumers. Now in the second half of 2010, we are already looking forward to 2011, and eager to master the challenges ahead. While we are confident that we have attractive value propositions to support your employee benefit needs, we want to be sure that we are not missing anything. For this reason we have set up a customer and business partner telephone survey, to gain direct feedback on our solutions and services. Almost half the customers, prospects and business partners we approached have agreed to an interview, and we will report the results in our next issue. With good information flow and timely co-ordination a key part of our offering, we have also now improved our customer relationship management tool. This connects providers, customers, and our organisation around the globe in real time, and goes live in Q4 to serve you even better. As ever, this issue also contains information on ongoing improvements to local components of our global employee benefit solutions. So as we enter the final part of the year, we look forward to working with you globally and locally to bring in a successful harvest for 2010. Yours sincerely Margrit Schmid 2 I Swiss Life Network Newsletter I September 2010 Content Introduction Unlocking the value of customer surveys 4 Partner News Brazil Icatu Seguros – the new brand in Brazil 6 United Kingdom Decline in long-term sickness absence due to stress 7 Canada Canadian employers and employees contributing more to group retirement plans 8 Germany Pension Day, 20 October 2010 in Munich 9 Ireland Irish Life wins ICT Excellence Award 2010 – and launches innovative pension scheme investment strategy 10 Luxembourg Swiss Life’s annual pension survey shows gender remains an issue in the Luxembourg workplace 11 South Africa Momentum’s awarded 2010 FIA Employee Benefits Product Supplier of the Year 12 Country News Belgium Early retirement employer contributions rise 13 India New regulations on ULIPs benefit clients 14 Ireland Higher retirement age proposed for Ireland 15 Singapore Reemployment mandatory for older workers from 2012 16 Client Interview Interview with Sarah Le Guluche, Compensation & Benefits, Electronic Arts, Switzerland 17 List of Swiss Life Network Partners Network partners and branch offices 19 Impressum Publisher Swiss Life Network, General-Guisan-Quai 40, P.O. Box, 8022 Zurich • Editor Swiss Life Network in cooperation with network partners, clients and Openline • Photos Swiss Life Network in cooperation with network partners and clients • Photo Front Girl outdoors throwing leaves • Design and Print Swiss Life Marketing Support • Copyright Swiss Life Network • Reprint authorisation on agreement with the Publisher • The quarterly Swiss Life Network newsletter is available online: www.swisslife-network.com/newsletter September 2010 I Swiss Life Network Newsletter I 3 Introduction Unlocking the value of customer surveys By Carmen del Carpio, Head Business/Product Development and Marketing, Corporate Solutions, Swiss Life In an age when the customer is king, customer satisfaction surveys are a key tool for ensuring that client needs are understood and met. Correctly used, customer surveys help companies to fulfil their clients’ evolving demands and improve service delivery. This raises customer satisfaction and retention, contributing to the corporate bottom line. Surveys can also provide excellent communication material. Customer satisfaction surveys have become a regular feature of the corporate marketing programme. Whether in the B2C or B2B sector, it is clearly understood: if you want to discover how satisfied your customers really are with your services, and uncover their true attitude to your company, you need to ask them directly. The cost of running such surveys can be considerable, particularly if they need to be done on an international basis – but so is the payback. The very act of engaging the services of a reputable market research company and running a survey is a clear signal to customers that their service provider is serious about measuring and responding to their needs and wishes. Personal discussions Naturally, the best way to do this is in a full and frank personal discussion. Salespeople or client relationship managers are in an ideal position to find out what customers want, and if their level of satisfaction is below optimal in any areas. In the B2B arena in particular, key account managers are usually in constant touch with customer decision-makers, and will be forthright in highlighting issues needing correction as and when these arise. However, there are obvious limitations to relying on this form of feedback alone: there may be issues based on the individuals involved; not all customers have regular meetings with company representatives (especially if things are going well); and anecdotal evidence is a poor basis on which to plan major adjustments or future initiatives. Professional surveys demonstrate client focus As a result, most companies today use the services of professional market research organisations, which not only draw up the questionnaire, but can also carry out the research, and collect, collate, and analyse the results. 4 I Swiss Life Network Newsletter I September 2010 The only two questions that count? In the opinion of some professionals, there are only two questions that really matter: • Would you recommend our company? • Would you do business with us again? These questions cut to the core of the customer experience and attitude to the company, and provide the clearest possible signals of the level of true satisfaction – or dis satisfaction – experienced by survey respondents, and their degree of loyalty towards the company. But while these are certainly key questions, most surveys take the correct approach of probing far more broadly and deeply, checking reactions to products, services, and the company overall, and asking open-ended questions to elicit suggestions for future developments and improvements. Using the responses Although the act of running a survey demonstrates a company’s client-focus, it is still vital to report back on the results and to show that the precious time taken by respondents to complete the survey has not been wasted. Indeed, this is the only way to ensure that client satisfaction surveys deliver win-win outcomes for all concerned. Introduction For example, in the 1999 Swiss Life Network survey, it was clear that clients were demanding a broader palette of flexible international solutions. When we surveyed again in 2005, there was a definite improvement in satisfaction in this regard, as we had reacted in the meantime by introducing our new modular international solutions. In another example, following survey feedback on the need for more regionally-based and shorter Network seminars, Swiss Life responded by introducing a programme of oneday events around the world, which are now well-attended and clearly meet popular demand. Surveys as a communication tool Used correctly, customer satisfaction surveys can have a significant impact on improving a company’s performance and offerings, leading to increased customer retention and a greater share-of-wallet. It is clear also, that the action of setting up and running a survey sends a very positive message about customer focus. While it is totally counter-productive to use customer satisfaction surveys simply as marketing tools, the communication value of surveys in general should not be underestimated. For example, Swiss Life in Luxembourg’s online survey on gender differences regarding pensions has important messages to convey (see page 11 for details). Similarly, Great-West Life’s CAP Benchmark Report (see page 8) provides valuable feedback to companies in Canada on employer-sponsored retirement plans. And Unum’s research (see page 7) has revealed a significant fall in longterm sickness absence due to stress. The outcomes of these studies provide important information for benefits professionals, and contribute to the further improvement of employee benefit strategies. Swiss Life Network conducted a client satisfaction survey this June that achieved an exceptionally high participation rate of close to 50%. Swiss Life Network extends its thanks to those clients and intermediaries who participated, and looks forward to sharing the results in the December issue of this newsletter. For more information please contact Ms. Carmen del Carpio, Swiss Life E-mail: [email protected] Phone: +41 43 284 45 92 September 2010 I Swiss Life Network Newsletter I 5 Partner News I Brazil Icatu Seguros – the new brand in Brazil The new Icatu Seguros brand was launched on June 21, 2010. It marks the acquisition by the Icatu Group of The Hartford’s shares in Icatu Hartford. An exciting new future beckons. After a positive partnership lasting 14 years, the financial crisis in the United States made The Hartford decide to focus on its domestic market and leave Latin America. As a result, the Icatu Group took over The Hartford’s shares in the Icatu Hartford joint venture, renaming it Icatu Seguros. Icatu Seguros The new company is an important achievement for the Icatu Group. The insurer’s values, culture, and solidity will continue to be its main assets. The move also confirms that Icatu Seguros is committed to Brazil and its core business, with high expectations for growth in the life and pension markets. Total assets have grown by an annual average of 19% in the last five years, reaching BRL 6.6 billion in 2009. Premiums amounted to BRL 1.7 billion in 2009, an increase of 9% over 2008, with net income equivalent to BRL 100 million. Icatu Seguros is now strengthening its focus on life and pension business, and has ambitious goals in these segments in Brazil. The company’s strategy is to present financial solutions to cover every life stage. After getting to know the client, they offer a tailor-made life and pension solution, and build a long-term relationship. Icatu Seguros is the largest independent capitalisation, pension, life and asset management insurance company in Brazil. After 19 years of experience, Icatu Seguros now has over 3.2 million clients and a healthy balance sheet. Icatu Seguros distributes its products through partnerships with almost 40 banks, financial companies, credit card institutions, and other companies. In the corporate market, Icatu has around 9,000 clients, which it serves with supplementary pension plans and life insurance. (Exchange rate: USD 1.00 – BRL 1.79) Icatu is planning to invest BRL 30 million in high-tech systems and executive training, with the aim of furthering innovation, growth, and client focus. For more information please visit www.icatuseguros.com.br or contact Ms. Vanessa Donke, Icatu Seguros E-mail: [email protected] Phone: +55 11 347 23 91 6 6 I Swiss Life Network Newsletter I September 2010 UK I Partner News Decline in long-term sickness absence due to stress In contrast to the overall rise in sickness absence recorded in the latest employment figures, Swiss Life Network partner Unum’s research reveals a fall in long-term sickness absence due to stress. Michael O’Donnell, Chief Medical Officer at Unum The increase in the number of people signed off work on longterm sick absence, reported in June by the Office of National Statistics (ONS) as part of the latest employment statistics, should not be seen as evidence of an overall increase in the proportion of people suffering from stress, according to Unum, one of the UK’s leading providers of financial protection. The insurer’s own recent research has shown that the longterm trend of stress resulting in long-term sickness absence is decreasing, with the proportion of all long-term sickness absence cases attributed to stress falling by 10% in the past four years. Stress now accounts for 23% of all longterm absences, compared to 33% in 2006. Michael O’Donnell, Chief Medical Officer at Unum, comments: “The decrease in stress as a cause of long-term sickness absence that we have recorded may be due to the companies concerned gradually tackling stress issues in the workplace, or because some employees would rather have another diagnosis than ‘stress’. This trend is also shown in the Labour Force Survey, which has been consistent with our findings over the last five years. there are ways to manage it, including making use of employee assistance programmes, which are increasingly offered through the workplace; careful financial planning and organisation; and communication with line managers or HR if the employee feels comfortable doing so.” “There is much evidence to show that being in work is better for your health. We should therefore be very careful before encouraging people to go off sick with stress and into the very situation they are most frightened of – being out of work.” Unum wins Group Risk Provider of the Year award Unum has been awarded the title Group Risk Provider of the Year at the 2010 UK Pensions Awards – the industry’s most prestigious accolade for scheme providers. The awards, run by Professional Pensions, were presented in April 2010 at a gala dinner in London. Unum’s Customer Solutions Director, Glenn Thompson, accepted the award and said: “We are delighted to have collected this award. We are making significant improvements to our product and service proposition to provide the best financial protection for all workers across the UK, and this award is testament to the hard work that the whole team is putting in. We are particularly delighted to win this award for the third time – being recognised by the industry’s leading professionals is a great achievement.” “We need to be careful not to be premature in drawing conclusions from the ONS figures. It is inevitable that job losses will include those with mental ill health, including stress. Additionally, normal anxiety about job loss is rational and should not be confused with mental ill health.” “It is a sad fact that stigma against mental ill health still exists at work, and many people do not feel able to talk about such problems with their employers. It’s important to acknowledge that it is natural to experience stress and For more information please visit www.unum.co.uk or contact Mr. Colin Fitzgerald, Unum E-mail: [email protected] Phone: +44 1306 873 04 7 September 2010 I Swiss Life Network Newsletter I 7 Partner News I Canada Canadian employers and employees contributing more to group retirement plans Canadian employers are increasing their contributions to group retirement plans, while more employees are maximizing their contributions to ensure full employer matching contributions, according to the 2009 Capital Accumulation Plan (CAP) Benchmark Report. Sponsored by The Great-West Life Assurance Company and based on a survey by Benefits Canada/Canadian Institutional Investment Network, the report shows that employers contributed 4.6% of salaries to their defined contribution (DC) pension plans in 2009, up from 4.5% the previous year. They also contributed 4.3% of salaries to their group Registered Retirement Savings Plan (RRSP) in 2009, up from 3.9% a year earlier. The benchmark report also shows that more employees are maximizing their DC pension plan contributions: 80% of responding employers with DC pension plans said their plan participants maximized their contributions in order to get full employer matching, up from 75% in 2008. For group RRSPs, 82% of plan participants were reported to be maximizing their contributions, up from 75% a year earlier. Among firms with under 100 employees, 91% reported that their employees maximized their contributions so as to optimize matching employer contributions. “This research clearly illustrates how robust employersponsored retirement plans are in Canada,” said Bill Kyle, Senior Vice-President, Group Retirement Services at Great-West Life. “The report shows that Canadian employers make significant commitments to group retirement plans, and that employees value this benefit by taking maximum advantage of employer matching programmes.” “The annual survey is an essential tool for monitoring the health of Canadian capital accumulation plans (DC pensions, group RRSPs, and deferred profit sharing plans), which play a growing role in Canada’s retirement landscape,” Kyle added. “In fact, over 50% of private sector workers now enjoy retirement plans at work, with over 70% of this coverage provided by CAPs.” 8 I Swiss Life Network Newsletter I September 2010 Other findings in the report • Overall, employer participation in group RRSPs rose in 2009: 46% of respondents said the company contributed to their group RRSP, up from 32% in 2008. S • maller companies were more likely to put money into their group RRSP. Among employers with under 100 employees, 70% make contributions, while 67% of employers with 100 to 199 employees make contributions. • Respondents reported that employees contributed an average of 4.5% of salary to their DC pension plan in 2009, up from 4.2% in 2008. The 2009 CAP Benchmark Report is based on data collected in 2009 from 264 organisations. The average DC pension plan surveyed had assets of CAD 93 million, while the group RRSPs surveyed had average assets of CAD 22 million. Great-West Life has 1.2 million group retirement savings plan member accounts and administers one in three Canadian defined contribution retirement plans. Smartphones help plan members save for retirement Great-West Life’s innovative new online calculator is helping group retirement savings plan members see how even a small increase in contributions to their employer-sponsored plan can lead to a significant increase in their annual retirement income. “People want access to resources that can help them make decisions about achieving their retirement savings goals,” says Michael Campbell, Vice-President, Group Retirement Services Marketing at Great-West Life. “This new calculator not only helps plan members see the difference that a small increase in contributions can make, it also allows them to change their contribution rate quickly and easily.” Partner News With easy-to-read graphics, the new calculator shows plan members what they can do to reach their retirement savings goals. For a 25-year-old plan member currently earning CAD 30,000 a year, an additional 1% of salary – i.e. CAD 300 – contributed each year can add up to CAD 1,431 more in annual retirement income. The My 1 per cent Advantage Calculator can be accessed by plan members using their BlackBerry or iPhone smartphone at www.my1percentadvantage.ca “We believe we’re the first to make this type of tool easily accessible on a smart phone,” Campbell said. He continues: “In many instances, plan members have access to a customized version of the calculator that includes their employer’s matching contribution. This new tool is just one example of the support and features we offer to meet the changing needs of group capital accumulation plan members,” For more information please visit www.greatwestlife.com or contact Mr. David Henry, Great-West Life E-mail: [email protected] Phone: +1 416 552 58 02 The next Swiss Life Pension Day will take place on 20 October 2010 in Munich. Economic experts and politicians discuss the fact that the occupational pension is more important than ever. The event will be chaired by Prof. Klaus Schweinsberg, professor of economics and former chief editor of the economic magazin »Capital«. For more information please contact: Schweizer Leben PensionsManagement GmbH, E-Mail: [email protected] Phone: +49 89 381 09 20 00 2010 Partner News I Ireland Irish Life wins ICT Excellence Award 2010 – and launches innovative pension scheme investment strategy Irish Life Corporate Business has won the ICT Excellence Award 2010 for the IT Professional Team of the Year, for its development of Pension Planet Interactive (PPI), a self-service platform for employers, brokers and trustees. This is the second year in a row that Corporate Business has been recognised at the ICT awards. The award reflects a lot of hard work by a large group of people to ensure that PPI is the success it is. The strategic partnership between Irish Life Corporate Business and HR Access, coupled with strong stakeholder involvement from start to finish, has delivered a market-leading online pension management system, re-enforcing Irish Life as the market leader in the group pensions market. With improvements in operational efficiencies delivered internally and among partner organisations, this is a classic case of strategic planning bringing huge benefits to businesses through the correct deployment of technology. Find out more about PPI on www.pensionplanetinteractive.ie Personal Lifestyle Strategy No two members of a pension scheme are identical, so why should their pension investments be the same? Irish Life Corporate Business now offers a new and innovative investment strategy for pension scheme members: the Personal Lifestyle Strategy (PLS), which provides a tailored pension investment solution for each individual. PLS is designed to meet two very important needs for pension scheme savers: 1. It helps protect the pension fund value against market fluctuations as members get closer to their retirement date. 2. It directs the investment into appropriate funds that best match the benefits that a member is likely to take on retirement. How does the Personal Lifestyle Strategy work? The Personal Lifestyle Strategy consists of two phases which span the years of the member’s pension savings. It starts from the moment the member joins the strategy up to the retirement date. For more information please visit www.irishlife.ie/corporatebusiness or contact Mr. Damian Fadden, Irish Life E-mail: [email protected] Phone: +353 1 704 12 72 10 I Swiss Life Network Newsletter I September 2010 Luxembourg I Partner News Swiss Life’s annual pension survey shows gender remains an issue in the Luxembourg workplace In the past, women demanded the right to higher education, then equal rights with men, and most recently the right to have a career. Nowadays, many women juggle a career and a family. But are they completely satisfied with their lot? Swiss Life in Luxembourg sought to answer this key question by dedicating this year’s annual survey to the topic of women. Run during the first half of June, there was an enthusiastic response to our invitation to women to express their point of view online on the theme of “Women, work and pensions”. With more than one thousand questionnaires returned, Swiss Life doubled last year’s level of participation, when both men and women were consulted. even declare that they do not receive any non-statutory benefits at all. Some gender discrimination still remains Judging Pensions: between lack of awareness and concern from the survey findings, gender is not particularly responsible for obstacles to advancement in the job market. At least, this is what 7 out of 10 female employees say. However, 17% of the women surveyed still indicated that they face problems connected with their gender. Asked whether they would be able to survive on the state pension alone, only 12% of women replied “yes”. The rest were divided equally between an outright “no” and “don’t know”. More worrying, only 27% of women responding believe that they earn the same salary as a man doing the same job, with this apparent inequality most prevalent in the private sector. These results give pause for thought, as women tend to mention salary when asked which aspects of their job matter to them most. Achieving a work/life balance Running a close second to salary in women’s aspirations is the pursuit of a good work/ life balance. The results of the survey clearly show that women yearn for more flexibility in their work hours. Thus, half the surveyed women in full-time employment admit that their working hours are dictated by their employer, and 53% of them would work part-time if they were offered the opportunity to do so. It is interesting to note, however, that among women now working part-time, 90% had chosen to do, and 89% have no desire to return to full-time work. This result runs counter to the frequent suggestion that women only work part-time because they are forced to do so by their employer. Seeking more non-statutory benefits Finally, one quarter of participating women expressed dissatisfaction regarding non-statutory benefits. 17% of working women The responses received for the private sector indicate that a supplementary pension scheme is offered to 66% of women. This significant incentive is clearly appreciated, and tops the list of sought-after benefits in a context where few are satisfied with their pension prospects. It also emerged that working hours have little impact on women’s opinions with regard to retirement pensions. Women working part-time were neither more nor less worried than their full-time colleagues. This begs the question: are women really so unaware of the impact of working part-time on the amount of their retirement pension? What can be done? The results of the survey provide an interesting snapshot of current (female) perceptions of gender equality in the Luxembourg work environment. One important aspect of the feedback is the strong indication that companies may be failing in their overall duty to educate their workforce on pension matters. This is a situation that requires urgent remedy – and which Swiss Life in Luxembourg would be happy to help its clients address. For more information please visit www.swisslife.lu or contact Ms. Armelle Bary, Swiss Life in Luxembourg E-mail: [email protected] Phone: +352 42 39 59 241 September 2010 I Swiss Life Network Newsletter I 11 Partner News I South Africa Momentum’s awarded 2010 FIA Employee Benefits Product Supplier of the Year for its FundsAtWork fund Ten years ago, Momentum had a vision: to revolutionise the employee benefits arena and make retirement funds fully responsive to their members’ needs. Carol Atkinson, Head of Product Development and Marketing for Momentum FundsAtWork In June this year, Momentum received the Employee Benefits Product Supplier of the Year award for its FundsAtWork umbrella fund from the Financial Intermediaries Association of Southern Africa (FIA). The judging was based on product, service, and relationship excellence. Since FIA members are corporate insurance brokers and licensed intermediaries, this is a prestigious award judged by the people who sell the product. Commenting on the award, Carol Atkinson, Head of Product Development and Marketing for Momentum FundsAtWork said, “This is a high accolade for Momentum and our team. We continually strive to differentiate ourselves through product innovation, as well as aiming to provide consistently awesome service to our intermediaries and clients. This award, as judged by the FIA members, shows we are getting it right.” FundsAtWork was launched in 2000. It now has close to ZAR 9 billion assets under management and over 135,000 members. The umbrella fund provides retirement, insurance, lifestyle and business benefits to small and mid-sized companies that cannot afford the administrative and cost burdens of running their own retirement funds. The FundsAtWork philosophy is very simple: flexibility, transparency, value for money, and ease of use, but above all innovation. This philosophy has led to the introduction of numerous unique features that differentiate FundsAtWork, including great flexibility for individual members when it comes to choosing their individual contribution rate, insurance cover and investment portfolios, along with total transparency of all fees charged. FundsAtWork is able to recognize individuals within a larger employer group and facilitate an understanding of their requirements. An online employer portal makes monthly exchange of information between employers and Momentum as easy as internet banking. Additional online functionality includes a fully transactional website for members, employers and brokers. Momentum is committed to continuing to lead the market‑ place through innovation, product flexibility, and meeting the needs of both employers and members. For more information please visit www.fundsatwork.co.za or contact Mr. Nazeem Khan, Swiss Life E-mail: [email protected] Phone: +27 11 485 75 58 12 I Swiss Life Network Newsletter I September 2010 Belgium I Country News Early retirement employer contributions rise Employer contributions to bridge pension allowances and early retirement benefits were standardized and increased on April 1, 2010. Under new legislation, employers are now required to make larger contributions to social security for employees drawing bridge pensions, whether due to early retirement or redundancy. The government has introduced the new law in order to dissuade employers from using early retirement to release employees. Although the employer contribution has been increased, the employees affected will not receive any additional benefits from this. The rise in employer contributions applies to all employees notified of early retirement or made redundant after October 15, 2009. It became effective on April 1, 2010. Employer contributions will be calculated based on the allowance payable on top of the retirement benefit, at a fixed percentage based on the employee’s age at the time of receiving early retirement benefits. The contributions will no longer decrease as the employee nears the standard retirement age. Increased employer contributions Until April 1, employer contributions were 32.25% of the additional allowance at the minimum early retirement age of 50. Employers are now obliged to make the following contributions on the additional allowance: Age 50–51: 50% Age 52–54: 40% Age 55–57: 30% Age 58–59: 20% Age 60 or older: 10% Companies in financial difficulties can apply to pay lower contributions. Assistance for employers To help companies deal with the new legislation, Swiss Life Network partner Delta Lloyd Life can assist companies by assuming the payments of additional allowances and employer contributions for former employees. In order to do this, a single premium amount is calculated and charged to the employer, after which Delta Lloyd Life is liable for the payment of allowances to former employees. The solution also enables the tax optimisation of the costs of redundancy and corporate restructuring, since a one-off payment and hence cost allocation is now possible. This is also a practical solution for companies wishing to run-off their operations in Belgium. For more information please contact Mr. Michel Moreau, Delta Lloyd Life E-mail: [email protected] Phone: +32 2 238 89 11 September 2010 I Swiss Life Network Newsletter I 13 Country News I India New regulations on ULIPs benefit clients India’s Insurance Regulatory and Development Authority (IRDA) issued new guidelines on unitlinked insurance plans (ULIPs) at the end of June, which come into force on September 1, 2010. While these guidelines apply for the individual business, these regulations will have a major impact on the Indian life insurance industry in general. All ULIPs to have a lockin period of five years The Minimum guaranteed return of 4.5% p.a. at maturity on pension and annuity products All ULIP lock-in period for all unit linked products has been increased from three years to five years, including top-up premiums, thus emphasising their function as long-term financial instruments that provide risk protection. During this period, no residuary payments on policies that have lapsed or been surrendered or discontinued will be made. Such residuary payments will now be payable at the expiry of the lock-in period. pension and annuity products must now offer a minimum guaranteed return of 4.5% per annum, or as specified by the IRDA, on the maturity date. The accumulated fund value of unit linked pension and annuity products is the fund value at the maturity date. Life cover and/or health cover may be provided with such products as riders. Level premiums are now mandatory for regular premium and LPP (limited premium payment) policies All regular premium/limited premium ULIPs must now have uniform, level premiums. Any additional payments will be treated as single premiums for the purposes of insurance cover. Minimum LPP term of five years The minimum period for which premiums must be paid has been increased from three to five years, thereby ensuring that clients remain invested for longer. Charges to be distributed evenly during the lockin period Charges on ULIPs must now be evenly distributed during the lock-in period, thus eliminating high front-end loading of expenses. Minimum life or health cover to be provided by all ULIPs, except pension and annuity plans All unit linked products, other than pension and annuity products, must provide a minimum level of life or health coverage, thereby increasing the risk component in such products. The amounts are set depending on age at entry. 14 I Swiss Life Network Newsletter I September 2010 No partial withdrawals are allowed for unit linked pension and annuity products, and there can be no lump sum payout options on surrender or maturity Partial withdrawals are not allowed during the accumulation phase in the case of unit linked pension and annuity products, and the insurance company must convert the accumulated fund value into an annuity on the vesting date. However, insureds will have the option to commute up to a maximum of one-third of the accumulated value as a lump sum at the time of vesting. In the case of surrender, only a maximum of one-third of the surrender value can be commuted after the lock-in period. The remaining amount must be used to purchase an annuity. Cap on loss on yield A cap has been introduced for loss on yield for every policy year starting in the fifth policy year, starting at a maximum of 4% and reducing to 2.25% after 15 annual premiums have been paid. Cap on surrender penalties from 1st to 4th policy year Caps have been set on surrender charges for the first four years of a policy, depending on the size of the premium. There will be no surrender charges from year five onwards. For more information please contact Mr. Sandeep Shrikhande, Kotak Life Insurance E-mail: [email protected] Phone: +91 22 666 21 59 99 Ireland I Country News Higher retirement age proposed for Ireland A National Pensions Framework Document was issued by the Irish government in March 2010, outlining proposed changes to the retirement pension system. The government of Ireland recently set out three major proposals regarding retirement pensions: 1. Increase in the normal retirement age Normal Retirement Age under Social Security will increase from age 65 to age 68, phased in from 2014 to 2028. 2. Mandatory enrolment of employees From 2014, employers will be required to automatically enrol employees above age 22 in a defined contribution plan (provided they are not already included in a qualified employer plan). The mandatory plan will feature employer contributions of 2%, employee contributions of 4%, and government contributions of 2% of salary. Note, however, that this will apply only to employees earning above EUR 332 per week. The amounts involved will be adjusted for inflation in future. 3. Tax relief Up to 33% tax relief will be available on employee contributions. Note that while the framework document did not include any easing of the statutory minimum funding standard for Defined Benefit plans, the Pensions Board has now granted a five-month extension to any plan facing a funding proposal deadline of June 2010. It is expected that more details will be provided once the government has developed the ideas further and received reactions to the proposals. Given the economic environment, there is considerable uncertainty surrounding the timing and exact nature of the implementation of these proposals. For more information please contact Mr. Damian Fadden, Irish Life E-mail: [email protected] Phone: +353 1 704 12 72 September 2010 I Swiss Life Network Newsletter I 15 Country News I Singapore Reemployment mandatory for older workers from 2012 Rather than raise the age of retirement, as of 2012, a new law requires employers to offer reemployment to workers who have reached the statutory retirement age of 62. The legislation thus extends employment for older workers, initially to age 65 and later to age 67. Final guidelines were recently released to help employers become “reemployment ready”. Based on feedback from members of the public, the Tripartite Guidelines on Reemployment of Older Employees were recently issued by a committee made up of government, employer and union representatives. The guidelines require employers to reemploy the majority of their older workers, and to offer jobs to all employees who are medically fit and perform satisfactorily or better. Employers are required to start talking to the employees involved at least six months before they reach age 62, although they are not required to offer them the same job or the same pay. Employment benefits such as annual leave and sick leave must continue, however at the level appropriate for the reemployment job. Reemployment will continue up to age 65, with contracts renewable annually, provided the employee remains fit and able to perform satisfactorily. If medical costs become an issue, caps on medical benefits, co-payments, or additional employer Medisave contributions can be considered. If reemployment is not possible, employers must offer a one-off Employment Assistance Payment (EAP) to be used by the employee while looking for alternative employment. The guidelines suggest a minimum of USD 4,500 and a cap of USD 10,000. Changes to the Central Provident Fund The re employment legislation complements changes to the Draw Down Age under the Central Provident Fund. The Draw Down Age, at which employees can access their savings, will rise from 62 to 63 in 2012, to 64 in 2015, to 65 in 2018, and later to age 67. Employers with existing reemployment policies will need to check that these are compatible with the guidelines, while companies without such policies should start to put these in place as soon as possible, in time for the 2012 deadline. Adjustments to existing insurance and medical plans may be necessary to cover reemployed staff. For more information please contact Mr. Cedric Luah, Swiss Life E-mail: [email protected] Phone: +65 640 71 37 3 16 I Swiss Life Network Newsletter I September 2010 Client Interview Interview with Sarah Le Guluche, Compensation & Benefits, Electronic Arts, Switzerland Our occasional series of interviews with senior employee benefit professionals continues with the thoughts of Sarah Le Guluche of Electronic Arts, who also gives us an insight into how her company uses employee surveys. Sarah Le Guluche, Compensation & Benefits at Electronic Arts What characteristics in your employees do you most admire? We have an amazing group of people working for EA across the globe, who are incredibly passionate about gaming and the titles we develop. Since I joined EA, I have admired the creativity of our employees, especially in our development and marketing teams. I am When did you start at always amazed by the innovation and quality of our prodElectronic Arts and why did ucts, and look forward to finding out what new products you choose to work there? we will be launching next. I started working at Electronic Arts’ global headquarters in Redwood City, California, in What were the most important factors when November 2003. As a graduate fresh out of university, the choosing the Swiss Life Network for your emopportunity to work for a company with a young and cre- ployee benefits, and what are your expectaative workforce was very attractive. In addition, the job role tions? When evaluating benefits providers, we are was interesting as it allowed me to gain exposure to three always looking for a provider that is able to deliver on price, different functions within HR: compensation, benefits and coverage conditions, and customer service. In several of mobility. our locations across Europe, we have found that Swiss Life Network partners are very competitive on these three key After three years working for EA in the US, I was given the criteria. opportunity to move to our international headquarters in Geneva, Switzerland, and take on a role within the Euro- Looking ahead, what do you think the future holds for employee benefits? Considering the ongoing ecopean compensation and benefits team. nomic instability, I would expect employers to continue What characteristics do you consider most im- monitoring the effectiveness of their employee benefit proportant for a successful compensation and ben- grammes and to focus on optimising their benefits spend. efits function? For a successful compensation and The trend in the last few years has been towards compabenefits programme, I have found it vital to focus on main- nies aggressively pursuing premium savings on core bentaining the connection between the compensation and ben- efits such as medical and risk insurance through regular efits strategy and the company’s overall business strategy. tender exercises and cost-sharing. While I expect this to Before implementation, any new programme or pro- continue, I believe companies will also look for additiongramme change should be measured against how it will al ways to leverage lower-cost perks and voluntary benefits help support the business objectives. Company culture and to make their benefit programmes attractive to employees employee demographics also play an important role in and new recruits as the economy recovers. compensation and benefits programme design. It is critical to understand what employees value and how they view total rewards, to be able to deliver programmes that create value for both the business and the individual. September 2010 I Swiss Life Network Newsletter I 17 Interview What is your opinion on market research and surveys; are they of value for your daily work? While I value market research and survey data, I feel that this is only one factor among many (e.g. business strategy, budget constraints, company culture and demographics, local legislation, etc.) to consider when designing or updating reward programmes. That said, when setting up a benefits programme in a new location or industry, survey data can be very helpful in assessing what is considered “typical” practice in that location or field. It can also be helpful when reviewing existing programmes to ensure they are still in line with the market. What I’ve found lacking overall from benefits data are specific programme design details – we therefore tend to turn to our local brokers or insurance partners for guidance on the particulars. Profile Electronic Arts Electronic Arts Inc. (EA), headquartered in Redwood City, California, is a leading global interactive entertainment software company. Founded in 1982, the company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, wireless devices and the internet. EA’s homepage and online game site is www.ea.com Your company probably conducts employee surveys – how do they influence your employee benefit strategy? EA conducts formal and informal employee surveys on a regular basis at both global and local levels, which helps us keep an active eye on our business. In some of these surveys, we ask for employee feedback on pay and benefits. We value all feedback on our reward programmes and take this into consideration, among many other factors, when reviewing our policies and programmes. Because of your commitment to the organisation there must be one thing you miss, for example, time with family, or travelling to relax, or a favourite hobby. What is it? My move to Europe with EA four years ago really fuelled my love of travel and the desire to explore other parts of the world. Of course it would be fantastic to have more time to spend discovering new countries and cultures, but for now, I consider myself lucky to be able to travel even a few weeks each year. 18 I Swiss Life Network Newsletter I September 2010 *Opinions expressed here reflect the personal view of the person interviewed. 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protected] +90 212 275 46 60 United Kingdom Bupa International www.bupa-intl.com Ms. Jette HOLTEN [email protected] +45 33 15 30 99 Unum www.unum.co.uk Mr. Colin FITZGERALD [email protected] +44 1306 873 04 7 USA Dearborn National www.dearbornnational.com Mr. Matthew REDDY Venezuela Seguros Comerciales Bolívar www.segurosbolivar.com Mr. Claudio HERNANDEZ Telephone [email protected] +1 630 824 60 96 [email protected] +58 212 905 97 56 September 2010 I Swiss Life Network Newsletter I 19 Swiss Life Network General-Guisan-Quai 40 CH-8022 Zurich Phone +41 43 284 37 97 Fax +41 43 284 39 97 www.swisslife-network.com E-mail: [email protected]