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3.2 Flexible Benefits Manual
I ntroduction to BWFlex
BWFlex has been developed as part of your overall remuneration package at Barnett Waddingham Actuaries and
Consultants Ltd (“Barnett Waddingham”) allowing you to choose benefits appropriate to your circumstances at this
time.
BWFlex is open to all permanent employees of Barnett Waddingham, including those on probation. You may review
your benefit choices each year to ensure that they continue to suit your personal circumstances.
BWFlex is discretionary. Barnett Waddingham may change the amount of Flexible Benefits Allowance, the benefits
included in the scheme, the providers of those benefits and the purchase value of the Flexible Benefits Allowance.
Any changes will not be made during the Flexible Benefits Year but will operate in the following Flexible Benefits Year.
Barnett Waddingham reserves the right to withdraw BWFlex completely, but will not do so without consulting
employees first. Barnett Waddingham will give at least 28 days notice of the closure which will be effective on the 31
December following the notice.
The amount of the Flexible Benefits Allowance and the benefits which may be purchased with it will be reviewed
annually and notified to you. If you do not allocate the full value of your Flexible Benefits Allowance to benefits the
balance will be taken as a ‘Cash Benefit’ equal to the difference. Any such cash sum will be added to your Gross Pay
and paid to you on a monthly basis, subject to HMRC's statutory deductions at the appropriate rates. If in any
Flexible Benefits Year you elect to receive benefits of a greater value than your Flexible Benefits Allowance, Barnett
Waddingham retains the right to make a deduction from your Gross Pay or to require you to pay a sum equivalent to
the value of the excess benefits.
BWFlex will enable you to:

Increase or reduce a number of your benefits within prescribed limits.

Receive a cash sum in lieu of benefits within prescribed limits.

Have a reduction in cash remuneration to enhance benefits within prescribed limits.
The information contained in this manual is based on Barnett Waddingham’s understanding of current HMRC laws and
practices, which are subject to change. The information in this manual is relevant to the tax year 6 April 2013 – 5
April 2014.
The Benefits Manual and Staff Manual apply to all employees of Barnett Waddingham Actuaries and Consultants Ltd.
This manual explains each of the benefits in turn, outlining the options available as well as your entitlement to core
benefits and a Flexible Benefits Allowance. BWFlex may be developed further. If so, we will include descriptions of
any new benefits available under the Scheme and how they operate.
It is important to note that you may only revise your choices once a year except in the event of a Lifestyle Change, so
it is vital that you read through this manual carefully and discuss your choices with your spouse or partner as
appropriate.
Your terms and conditions of employment incorporate the rules of the BWFlex scheme and the benefits that you elect
annually in that scheme.
Updated: Elizabeth Wilson; November 2013
General Terms
Reference Salary
Your Reference Salary will be set initially at the value of your current annual salary and will be reviewed
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each year with effect from 1 January (or such other date as Barnett Waddingham may decide). This
Reference Salary will be used to determine the value of your benefits included in BW Flex.
Gross Pay
Your Gross Pay is the salary paid to you each month and is subject to HMRC's statutory deductions. Your
gross pay may be lower or higher than your Reference Salary, depending on the value of the benefits you
select.
Statutory Deductions
Your Gross Pay is subject to HMRC's statutory deductions. Most commonly applied Stautory Deductions
are tax, National I nsurance and Student Loan. Barnett Waddingham is legally required to apply Statutory
Deductions to your Gross Pay.
Flexible Benefits Allow ance
Your Flexible Benefits Allowance is the monetary value of the benefits within BWFlex which you are
entitled to receive under your contractual terms of employment. This allowance can be used to purchase
benefits of an equivalent value. You may choose to purchase a different set of benefits, subject to the
rules of BWFlex.
Salary Exchange
Sometimes known as salary sacrifice. This refers to the exchange of Gross Salary for another non cash
benefit such as holiday or pension contributions. Salary exchange is subject to HMRC approval.
Cash Benefit
The Cash Benefit is the balance of your Flexible Benefits Allowance after deducting the cost of the holiday
and pension contributions you have elected under BWFlex. This is added to or deducted from your
Reference Salary at the beginning of each Flexible Benefits Year to determine your Gross Pay; if you select
benefits worth more than your Flexible Benefits Allowance then your Gross Pay will be less than your
Reference Salary.
Flexible Benefits Window
The Flexible Benefits Window is a pre-determined period of time during which you will be able to elect and
submit your benefit choices for the following Flexible Benefits Year using the BWFlex system. You will be
advised of your new Reference Salary and Flexible Benefits Allowance before the Flexible Benefits Window
opens. This Reference Salary and Flexible Benefits Allowance will normally be effective for the duration of
the following Flexible Benefits Year.
Flexible Benefits Year
The Flexible Benefits Year is a twelve month period commencing 1 January. The terms and content of
BWFlex are subject to annual revision. Each November you will be advised of your Reference Salary and
your Flexible Benefits Allowance for the following year, and the benefits available for purchase.
Core Benefits
This is the default package of benefits detailed in your contract of employment before any BWFlex choices
are made.
Lifestyle Changes
This term is used to refer to a significant change in your personal circumstances which enables you to
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review your flexible benefit choices outside of the annual Flexible Benefits Window due to your current
choices no longer being suitable to your circumstances. Details of the events classified as a Lifestyle
Change for BW Flex are defined here.
Contractual Holiday
This term is used to refer to contractual holiday entitlement and does not include bank holidays.
Updated: Elizabeth Wilson; November 2013
Benefit Terms
Each of the benefits described in this manual is subject to the terms and conditions of the benefits provider. A
summary of the specific terms is outlined under each benefit, but there are a number of general terms, which apply to
several or all of the benefits described in this manual. These are outlined below:
Eligibility
The Flexible Benefits outlined in this manual are available to all permanent employees subject to the rules of benefit
providers and the provision in force.
Permanent employees become eligible to join BW Flex on their first working day and are able to flex benefits as
follows:
Day 1
Holiday, Pension, Life Assurance, Childcare Vouchers, Give As You Earn
After Probation period
Private Medical Cover* , Dental Insurance, Health Assessments, Will Writing, Cash Plans
and GymFlex
After 1 year
Pension and Private Medical Cover – at 1 year you become eligible to receive
further employer funded pension contributions and single PMC cover
* Self funded at this stage
Payment of benefits
A number of the benefits are provided through insurance companies. Payment of benefits through these companies
will be subject to you fulfilling the eligibility criteria and rules for claiming specified by the insurer.
Leaving Barnett Waddingham
Most benefits under BWFlex will cease on the day of leaving Barnett Waddingham. You shall be paid in lieu of any
holiday entitlement accrued but untaken at the date of termination of your employment. Holiday entitlement taken
in excess of that accrued at the date of termination will be deducted by Barnett Waddingham from the final payment
of salary. Each day is priced at 1/ 240th of annual salary (pro-rated for part-time employees).
If you have opted for a Health Assessment through BWFlex and you have not booked this by the date you leave, this
will be refunded to you in your final salary payment.
Unused Childcare Vouchers that you have bought through BW Flex will remain valid.
Changes to BWFlex
BWFlex is discretionary. Barnett Waddingham may change the amount of Flexible Benefits Allowance, the benefits
included in the Scheme, the providers of the benefits and the purchase value of the Flexible Benefits Allowance.
Other changes may include the operational dates of the Scheme. Any changes will not be made during the Flexible
Benefits year but will operate in the following Flexible Benefits Year.
Normally you can only amend your choices once each year with the exception of Lifestyle Changes.
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Each of the benefits described in this manual are subject to the terms and conditions of the benefits provider. A
summary of the specific terms is outlined under each benefit, however there are a number of general terms, which
apply to several or all of the benefits described in this manual.
Updated: Elizabeth Wilson; November 20123
How do I make my choices?
You are able to make choices by accessing BWFlex through ‘My Information’ on the Intranet when the Flexible
Benefits Window is opened (normally for a two week period in December).
You will normally only be able to change your selection during the period in which the Flexible Benefits Window is
open. If you select benefits worth less than your Flexible Benefits Allowance this will result in a cash balance which
will be paid to you as a non-pensionable Cash Benefit monthly through the payroll and will be subject to statutory
deductions at the appropriate rates.
New employees will be sent details for the Flexible Benefits scheme showing their Flexible Benefits Allowance and the
options available to them in addition to their core benefits. Any Flexible Benefit choices made will be effective from
the 1st of the month following selection of benefits and completion of entry forms (for example Private Medical
Cover form). Your Flexible Benefits Window will be opened from your joining date for a period of two weeks when
you will be able to make your choices.
Updated: Elizabeth Wilson; November 2013
BWFlex and Maternity
BWFlex and referencing period for Statutory Maternity Pay ( SMP)
Maternity is an exceptional lifestyle event that requires employees to review their benefit choices. It is important that
employees understand that Gross Pay (not Reference Salary) is used to determine SMP, so reductions in Gross Pay as
a result of salary exchange may have a detrimental effect on SMP.
Employees will be able to review their benefit choices on confirmation of pregnancy and HR will be able to advise
what affect reductions in Gross Pay may have on SMP.
Upon returning to work, the employee will be able to resume making BWFlex choices for the balance of the Flexible
Benefits Year.
Holiday
During your maternity leave period you will continue to accrue standard holiday and bank holidays.
Updated: Elizabeth Wilson; November 2013
BWFlex and Part- time Working
BWFlex and Part- Time Working
A part-time employee is any employee who works less than the normal working hours of 36.25 per
week.
Part-time benefits are calculated on a strictly pro-rata basis. This applies to:
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
Holiday

Childcare allowance

Private Medical Cover

Health and Fitness Club Membership (and therefore GymFlex)
Other benefits such as pension, group income protection and life assurance are calculated by
reference salary and are adjusted when salary is changed to reflect part-time working.
The following section concentrates on holiday information for part-time employees due to the way
different working patterns affects this benefit.
Holiday
How is holiday calculated for a part-time employee?
Part-time employees receive the pro-rata entitlement of holiday and bank holidays of a full-time
employee. These holidays are expressed in hours to reflect the various different types of part-time
working arrangements which we have.
Part-time holiday is calculated by multiplying the full-time standard days by the hours worked each
day (see note regarding Average Hours below), dividing by the full-time working week (36.25) and
multiplying by the hours worked each week. In addition, the number of bank holidays falling in that
year also needs to be calculated using the same process. The two totals are added together to give
the overall total entitlement of holiday in a year. Bank holidays falling on normal working days are
deducted from the overall total hours to determine how many standard hours holiday you have
remaining to take.
We have prepared a holiday calculator which may help you with working out the hours and days
for your holiday entitlement based on reduced working hours.
Examples are shown below:
1. Employees who work the same hours on a reduced number of days. The example below
uses 21.75 hours (three days) per week:
If you work 21.75 hours per week (7.25 per day) and have a full-time equivalent holiday allowance of
twenty two days plus eight bank holidays during the year (30 in total), you will receive a total of 130.5
hours holiday per annum:
30 days * 7.25 hours worked per day (total) / 36.25 (full-time working hours) * 21.75 (part-time hours
worked) = 130.5.
If during the year, 36.25 (example) hours fall on bank holidays which occur on normal working days,
36.25 hours will be deducted, leaving a total of 94.25 standard hours holidays for the year (130.5 –
36.25 = 94.25 hours).
2. Employees who work 29 hours (four days) per week:
If you work 29 hours per week (7.25 per day) and have a full-time equivalent holiday allowance of
twenty two days plus eight bank holidays during the year (30 in total), you will receive a total of 174
hours holiday per annum:
30 days * 7.25 hours worked per day (total) / 36.25 (full-time working hours) * 29 (part-time hours
worked) = 174.
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If during the year, 21.75 hours fall on bank holidays which occur on normal working days, 21.75 hours
will be deducted, leaving a total of 152.25 standard hours holidays for the year (174 – 21.75 = 152.25
hours).
3. Employees who work the same hours every day for five days:
If you work 25 hours per week (5 per day) and have a full-time equivalent holiday allowance of twenty
two days plus eight bank holidays during the year (30 in total), you will receive a total of 103.5 hours
holiday per annum:
30 days * 7.25 hours (total) / 36.25 (full-time working hours) * 25 (part-time hours worked) = 150
If during the year, 40 hours fall on bank holidays which occur on normal working days, 40 hours will
be deducted, leaving a total of 110 standard hours holidays for the year (150 – 40 = 110 hours).
4. Employees who work different hours on different days:
Example: 7.25 hours Monday, Tuesday and Friday and 5 hours Wednesday and Friday.
If you work 31.75 hours per week and have a full-time equivalent holiday allowance of twenty two
days plus eight bank holidays during the year (30 in total), you will receive a total of 166.8 hours
holiday per annum:
30 days *7.25 hours (total) / 36.25 (full-time working hours) * 31.75 (part-time hours worked) = 190.5
If during the year, 46.25 hours fall on bank holidays occurring on normal working hours, 46.25 hours
will be deducted, leaving a total of 120.55 standard hours holidays for the year (190.5 – 46.25 =
144.25 hours).
Updated: Elizabeth Wilson; November 2013
Changing your Flexible Benefit Choices
Lifestyle Changes
Lifestyle Changes are defined as:
confirmation of pregnancy (for example after 12 week scan) or birth or adoption of a child#

return to work after maternity or adoption leave#

marriage or civil partnership

divorce or dissolution of a civil partnership

death of spouse, civil partner, dependent partner (with whom you have been cohabiting for at least 6 months)
or child
significant change of hours (significant means a change of 20% or more) # .

#
you may only change your benefits once, either as a result of confirmation of pregnancy or on the birth/adoption of
a child. In addition, you may change your benefits upon returning to work after maternity or adoption leave (whether
or not your hours have changed). Your Life Assurance benefits may only be changed on one of these three events.
On the occurrence of a Lifestyle Change during the year, the Flex Window would be opened to allow you to submit a
new set of benefits under BWFlex. The Flex Window will only be opened two times during a year due to Lifestyle
Changes; Life Assurance can only be increased on one of these occasions. Please notify HR at the time if a Lifestyle
Change applies to you. The Flex Window can be opened from 4 weeks before the Lifestyle Change (where
appropriate) to 4 weeks after the Lifestyle Change. The change in benefits will take effect from the 1st of the month
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after you submit your revised choices. If you don’t change your benefits within this period we may not be able to
accommodate your requested changes.
Other times benefits can be changed
At one year’s service Pension Contributions and the level of Private Medical Cover can be changed. No other benefits
can be changed at this time.
If you have a significant change in your childcare arrangements you may be able to change the level of Childcare
Vouchers. You should contact HR if you would like to change this benefit.
Updated: Elizabeth Wilson; November 2013
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