Aon Hewitt, the global human resources consulting and outsourcing business of Aon Corporation, is urging companies to take action and start communicating pension tax changes ahead of the April 2011 deadline.
The government yesterday announced further details on the reductions in annual and lifetime allowance originally proposed in October. Given the number of individuals affected by these proposals, Aon Hewitt is encouraging companies to take control of implementing a communication strategy which includes pre-emptive employee communication.
Lisa McEneny, communication consultant at Aon Hewitt said: “The tax change clock is already ticking and it will be a tough task for companies to get everything in place and on time for this – it involves policies, communication and administration. Between now and next April, companies need to review their pension remuneration and reward policies for high earners affected by the tax changes, make their policy decisions and then communicate the changes so that members can make informed choices.
“It is vital to remember that it is the key talent in organisations that will be affected. Once companies have analysed and segmented their employee data to see who is potentially impacted, a dialogue with those individuals should begin. There is no time to lose; by next April, companies must have this process well underway.”
The findings of a recent survey of over 300 pensions professionals carried out by Aon Hewitt, as part of a recent teleconference on the changes, highlighted that most companies are planning to use a combination of media, such as written material, modellers and face-to-face meetings to communicate the tax changes to different segments of their target audience.
Lisa McEneny continued: “To ensure all the communications run smoothly, companies will need to think about using tools effectively and efficiently for maximum impact. We suggest a combination of written materials, intranet content with regularly updated Q&As, and perhaps a specific email box or phone helpline. Finally, to provide support for expatriate employees and make the communications more personal and effective, we suggest running a webinar and a series of one-to-one phone sessions.”
Aon Hewitt has established guidance to help companies in initiating the process:
-The first step is to create awareness among employees of the changes and concepts and provide material to help understand the issue.
-This could be further supplemented by customised models that help individuals evaluate the impact on their personal situation.
– Communicating the pension tax changes effectively is a positive opportunity to engage with employees, offering one-to-one planning sessions and individual guidance, ensuring they are able to make informed decisions about the options available to them.
Source : Aon Hewitt Press Release
