Boosting Your Voluntary Benefits Scheme

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Boosting Your Voluntary Benefits Scheme

• Julie Wisdom, CSC UK Reward and Recognition
• 2 May 2007

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Agenda

• CSC
• CSC UK Employees
• Business Drivers of Benefit Provision
• About CSC benefits
• Voluntary Benefits within Flexible Reward
• Removing Age Related Structures?
• Tax and NI breaks in Flexible Reward
• Monitoring Flexible Reward Take Up
• CSC Connections launch and offer
• Initial take up
• Communicating voluntary benefits
• Healthcare benefits

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CSC Is a Global Leader in IT and Business Services
Global, end-to-end capabilities in consulting, IT
and business process outsourcing, and systems
integration
14.7B in revenue for the 12 months ended
December 29, 2006
Serving 15 industries on six continents
77,000 employees in 92 countries worldwide

• Founded in 1959

CSC has a strong reputation for performance,
technical depth, and customer focus.
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Our Operations Span the Globe
49 Countries with Permanent CSC Locations
China Colombia Czech Republic Denmark Ecuador Finl
and France Germany Hong Kong India
New ZealandNicaragua Norway Peru
Philippines Poland Portugal Republic of
Korea Russia Singapore
Indonesia Ireland Italy Japan Luxembourg Macau
Malaysia Mexico Netherlands Netherlands
Antilles
Argentina Australia Austria Barbados Belgium Bermu
da Brazil British V.I. Canada Chile
Slovakia South Africa Spain Sweden Switzerland Tai
wan (ROC) Thailand United Kingdom United States
43 Countries Where CSC Serves Clients
Diego Garcia, UK Egypt Greece Guam,
U.S. Guatemala Honduras Iceland Iraq
Namibia Pakistan Panama Papua New
Guinea Puerto Rico Qatar Romania Saudi Arabia Sri
Lanka
Israel Jamaica Jordan Kosovo Kuwait Liberia Lithu
ania Malta Morocco
Afghanistan Bahrain Bosnia Botswana Brunei Costa
Rica Croatia Cyprus Democratic Republic of
Congo (DRC)
Swaziland Trinidad Turkey Ukraine Uruguay Venezuel
a Vietnam Yemen
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CSC Supports Leading Commercial and Public
Sector Clients
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About CSC in the UKWorkforce Demographics

• 70 Male 30 Female
• High Income
• Professional
• 70 of employees aged 30 49
• 200 locations in UK

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Business Drivers of Benefit Provision

• Recruitment and Retention
• Tax and NI savings
• Flexible benefits support the business model
  many TUPE transitions
• Emphasis on total reward package pay management
  on a like for like basis
• Employee feedback

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About CSC Benefits

• Flexible Reward CSC flex from July 2000
• Mature, comprehensive scheme offering 19 benefits
  to all staff
• Based on total remuneration base salary
  funding for benefits
• Some contractual (including core), some
  voluntary
• Serious benefits profile
• Voluntary Benefits CSC connections from
  September 2006
• Offered through a supplier hosted website
• Benefits not underwritten by employer
  employees relationship is with supplier
• Fun benefits profile

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Voluntary Benefits inCSC flex
CSC Proprietary 10/30/2009 94651 AM SGM
InfoExchange 9
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Tax and NI breaks in Flexible Reward
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Removing Age Related Structures?

• Age Related Structures
• Critical Illness
• Additional Life Assurance
• Objective justification

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Monitoring Take UpMost popular voluntary
benefits

• Pension
• Holiday buying and selling
• Private Medical Cover
• Critical Illness insurance
• Annual Travel Insurance
• Additional Life Assurance
• Dental Insurance
• Retail vouchers
• Childcare account

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CSC connections launchRequirements

• Flexible and reliable supplier
• Cost effective
• Broad offering
• Good deals
• Incorporating current CSC concessions
• Monthly offers to keep offer fresh

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CSC connections offer
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Monitoring CSC connections The first 3 months

• 4,294 registrations
• 260 voucher purchases to mid January value
  78,000
• Biggest order 7,000 in John Lewis vouchers
• 50 Website bookings

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Communicating Voluntary Benefits

• Issues
• Cost effectiveness
• Reach
• Competing priorities
• Understanding
• Accessibility
• Keeping the scheme fresh
• Email
• Intranet
• Competitions and prizes
• Face to face seminars and town hall calls

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Healthcare Benefits Trends /1Private Medical
Cover

• Very popular..
• Group voluntary schemes provide significant
  savings for individual
• Reassurance of immediate attention
• But increasingly an issue of concern
• Private Medical inflation impacts affordability
• Claims experience
• Scheme design changes to address issues
• Introduction of voluntary excesses
• Premium reduction
• But over longer term savings may reduce
• NHS use benefits for dependants to drive claims
  down

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Healthcare Benefits /2

• Emerging health benefit trends
• Introduction of modular schemes
• Promotion of cheaper alternative health benefits
  e.g. healthcare expenses

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Boosting Your Voluntary Benefits Scheme End
Julie Wisdom 2 May 2007
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Experience. Results.