This report follows the earlier Decision Notice Number 082 introducing a voluntary benefits system, provided in a partnership arrangement with North Yorkshire County Council (NYCC), to include local and national offers, Salary Sacrifice offers and some aspects of Scheme management.
North Yorkshire Police (NYP) has sealed the Access Agreements for Lots1 (voluntary benefits scheme i.e. the discounts platform), 2 (childcare) and 4 (cycle to work) and thus now has access to the contract details and is completing the detailed planning. Decision Notice 082 stated “The establishment and running of this Scheme requires a full understanding of its mechanics and their implications for NYP, both staff and organisation. Input into the legal, information security, financial and administrative aspects will precede adoption and provide guidance as to the roll out of the various Lots.” Accordingly this paper provides further details and seeks decisions on:
- The policy and potential implications when introducing Lot 1
- Treatment of potential savings from pension contributions for the Salary Sacrifice Scheme Lot 4.
Further detail to be provided on Salary Sacrifice Schemes Lots 2, 3 and 5 (Childcare, Green Car, Employee Computers) when the appropriate detail is available.
Lot 1 – Voluntary Benefits System:
Adoption of the Voluntary Benefits System could achieved in two ways:
- Allow browsing only of the System when accessed through the NYP intranet site. Purchase of goods would then need to take place from, and be restricted to, a personal computer.
- Allow both browsing and purchasing through the System when accessed via the NYP intranet.
Option 2 would require a change to the current NYP Procedure.
Lot 4 – Cycle To Work Salary Sacrifice:
Lot 4 is a Salary Sacrifice Scheme that can produce savings for staff in tax, National Insurance and pension contributions and for the Chief Constable and Commissioner against Employers’ National Insurance and pension contributions. Employers may determine whether contributions to occupation pension schemes remain – for both employer and employee – at the original substantive or post salary sacrifice revised level. Appendices A and B show the potential set up costs of the Employee Benefits Scheme and the range of savings attributable to each Cycle to Work application, both with and without the range of employer’s potential pension savings. Taking into account the information in this illustration the Executive Board is asked to decide, in addition to the savings available for both staff and employee in tax and National Insurance, whether or not to take the employer’s pension contribution savings. If choosing not to do so then both employer and employees would continue to make contributions at the original rate, thus leaving occupational pensions unaffected. This would also mirror the host (North Yorkshire County Council (NYCC)) organisation’s approach.