AUDIT SERVICE

Interested parties and prospective corporate clients are invited to request an Audit of their existing Employee Benefit arrangements.  Optima has conducted countless audits, invariably identifying one or more of the 25 common flaws or omissions associated with unaudited schemes.   The majority of glitches are minor and easily rectified, for example out-of-date Scheme Rules, or dubious Trust documentation.  Some errors can however have potentially serious consequences, particularly in event of a claim.  In event of ‘accidentally’ uninsured claims, vulnerable companies may be compelled to meet the claim from cash-at-bank, or reserves, or borrowing.  The Optima Audit Service affords company officers complete peace of mind.  Prevention is the best Protection.

DEALS & DEALMAKERS

Corporate deal-doers recognise Optima’s reputation for technical expertise and client empathy.  Whether it’s a merger or acquisition, management buy-out (MBO), transition to an employee ownership trust (EOT), substantial start-up, or some other significant corporate change, these events are critical nexus points when Employee Benefits should be reviewed.   Beginning in 1990 with the UK’s then largest MBO, Optima’s directors and key personnel have long been active in the ‘corporate change’ space, advising clients of Venture Capitalists, Private Equity houses, merchant banks, as well as all manner of accountancy and legal specialists.   Corporate change presents the opportune moment to ensure Employee Benefits are fit for purpose.   Optima…  the Dealmaker’s choice.

Case Study:  Inveresk Paper, a large manufacturing company took the opportunity to complete a management buy-out from its American parent, followed a few years later with a listing on the London Stock Exchange.  Optima personnel were involved pre-MBO, and continued to provide advice and benefits management pre and post flotation across a 4 figure workforce.

PENSION SCHEME: Trustees & Advisers

Pension scheme trustees fall into 2 categories:

• Laypersons
• Professionals

Lay Trustees will typically be drawn from the sponsoring company’s employees who are scheme members, and perhaps retirees.  These trustees will often reflect different employment levels within the organisation, for example ranging from shopfloor to management to directors.

Professional Trustees are those whose career is in pension scheme trusteeship.  They usually have professional qualifications and previously acted as advisors within the pensions and benefits industry.  Some trustee boards only have professional trustees – these are known as Professional Sole Trustees.

Irrespective of ‘rank’, a common denominator is trustees’ willingness to accept and abide by the responsibilities entrusted to them.  One of their key functions is to appoint relevant advisers to help them make good decisions concerning the funding and delivery of scheme benefits.

Advisers will invariably include solicitors specialising in pensions law; actuaries; and investment experts or fund managers.

All trustees have a duty to safeguard the interests of pension scheme members, including Employee Benefits, ensuring that the right benefits are paid to the right person at the right time.

In addition to retirement provision, good employers will normally offer benefits such as Death-in-Service, Group Income Protection insurance, and Private Medical Insurance.   Many schemes will also offer valuable ‘add-ons’, for example dental and optical specialities.

Whichever particular Employee Benefits are provided, it’s important that Trustees appoint experienced experts in this field.

For 40 years Optima has been expertly assisting Trustees discharge their duties and fulfil their obligations.

Case Study:  Pension Scheme X appointed PAN Trustees as its Professional Sole Trustee; the scheme is operated by a family-owned engineering firm.  While closed to future accrual, the scheme still provides Death-in-Service pension benefits for members who remain employed, in addition to Death-in-Service lump sums to all employees.  PAN Trustees decided to review Employee Benefits, requiring a specialist broker to assist.  Following a rigorous ‘beauty-parade’ Optima was appointed, delivering a bespoke value-for-money service meeting the needs of all parties.