Life Assurance
myFamily
Whilst the majority of Rendall & Rittner’s company benefits are designed to directly benefit our employees, Rendall & Rittner is also aware of employees’ desire to support and provide for their families. The Company therefore provides a Life Assurance Scheme so that in the event of the death of an employee, benefits equivalent to 3 times salary will be paid to the employee’s beneficiaries. When will I be covered under the Life Assurance Scheme? You will be covered under the Life Assurance scheme from your first day of employment and whilst you remain employed by Rendall & Rittner up until the age of 75. Do I need to complete any forms? You will need to complete 2 copies of an Expression of Wish form. This form notifies the Trustees who you would like your death benefits payable to. It is imperative that you complete these forms as, if you don’t, you may not be covered under the Life Assurance Scheme Are there any tax implications? Life Assurance is not deemed by HMRC to be a Benefit In Kind and so your membership of this scheme will not be taxable. In the event of an employee’s death, the Trustees carefully consider the bequest details on your Expression of Wishes form. This arrangement means that the payment does not become part of your estate and so will not be subject to inheritance tax. No tax will be deducted from the lump sum payment unless the value of the lump sum benefit, combined with any relevant pension benefits, leads to a breach of the Lifetime Allowance. Will death benefits from the Life Assurance Scheme be tested against the Lifetime Allowance? If your total death benefits, i.e. Life Assurance, plus the value of any cash payments from current and previous pension arrangements are expected to exceed the Lifetime Allowance (£1.25 million from 6 April 2014, reducing to £1 million from 6 April 2016), any benefit above the lifetime allowance will be liable for a tax called the lifetime allowance charge (of 55%), unless any protections apply. A dependant’s pension would be taxable as earned income (if appropriate) in the hands of the recipient(s) and would not be tested against the Lifetime Allowance.
Made with FlippingBook - PDF hosting