It will become mandatory for the employer to make provision for his employee’s retirement. Much has and is yet to be debated around the issue but in one way or another regulations will be in place by 2013 if not sooner.

Employers having their own arrangements will in all probability have dispensation provided their benefits meet certain minimum standards.

The issue remains, just what is the level of responsibility an employer has to provide for a secure future for his employees.

Employee Benefits

About Employee Benefits

Benefits provided not only include the provision for retirement income but also the protection needed in the event of death or disability. The levels to which you may wish to provide benefits differ but the 3 principal areas for consideration are:

1. A Retirement Benefit – A capital amount received on retirement for the provision of a monthly income. A pension fund or a Provident Fund are the two most commonly used vehicles for this purpose. Whilst both achieve the same “end capital”, their tax treatment differs.

2. A Death Benefit – Usually expressed as a multiple of annual salary. 3 Years being the “norm”.

3. A Disability Benefit – This too can be expressed as a multiple of annual salary for permanent disability but is more of ten insured on a comprehensive “income protection” basis whereby the employees income is payable for the duration of his/her disability by definition this would include disability of a “non permanent” nature i.e long term but not permanent incapacity due to an accident, heart attack etc.

We are more than happy to provide you with a new quotation for your company or comparative costing for your present arrangements.