Benefit eXchange is one of the most important and valuable benefits provided by Northern Trust and it is important that you understand how it works. If you still have questions on how Benefit eXchange works after reading this section, along with the individual benefit pages within the 'Benefits Summary' section of this website, you should contact the Benefit eXchange helpline on 0800 916 8016 or email benefitexchange@willistowerswatson.com.
Benefit eXchange is the flexible benefits plan offered at Northern Trust. It gives you freedom, choice and flexibility in the way you receive your benefits, as well as giving you the opportunity to make savings where possible. For example, you may benefit from lower prices where Northern Trust has been able to negotiate competitive corporate benefit terms. Also, you could qualify for savings in income tax and National Insurance contributions depending on the benefits that you choose.
Benefit eXchange offers a comprehensive range of benefits which currently include:
| Health | Lifestyle | Savings & Retirement | Protection |
|---|---|---|---|
| Dental cover | Holiday | Pension | Critical illness insurance for me |
| Health assessment | Charitable Donations | Share Purchase | Critical illness for my partner |
| Private medical insurance | Childcare vouchers | Life assurance for me | |
| Cycle to work | Life assurance for my partner | ||
| Income protection |
All UK employees of Northern Trust are eligible for Benefit eXchange, although eligibility to certain benefits may be restricted.
The following people will not be eligible for Benefit eXchange:
The following employees will continue to be eligible for Benefit eXchange, although certain benefit restrictions may be in place:
Each year, during the annual enrolment period, you will be able to make your choices. This period will usually run for three weeks during November and early December. Subject to the relevant approvals, your choices will be effective from 1st January for the next 12 months. This timeframe will vary if you stop being eligible to participate in Benefit eXchange (for example, if you leave Northern Trust), or you change your benefits at a life event or changes are made to the benefits by Northern Trust or any of the benefit providers.
For the 2020 Benefit eXchange year, you will be able to make your benefit choices during November and early December 2019.
If you do not submit your completed Benefit eXchange enrolment form by the final day of the annual enrolment, you will receive your default benefits package under Benefit eXchange.
You should be aware that there may be restrictions on the type of changes that can be made to your benefit choices for future enrolments. Also, if you decide to opt out of a certain benefit, you may not be able to choose the previous level of benefit at a future annual enrolment or life event.
Even if you think you do not want to make any changes to your benefit choices at a subsequent annual enrolment, you should always review the website and your choices, as benefits (and the terms of particular benefits) may change from year to year. There may also be changes to the tax treatment of benefits under Benefit eXchange, which you should consider.
Your benefit choices are subject to approval by Northern Trust and acceptance by any relevant benefit provider. For example, some or all of your benefit choices may be rejected:
Northern Trust will aim to provide your chosen benefits, but reserves the right to vary all or part of your choices and cannot guarantee that your chosen benefits will be approved or accepted by the relevant benefit provider. Therefore, confirmation of your choices is entirely at the discretion of Northern Trust and/or the relevant benefit provider. If your benefit choices are declined in whole or in part, Northern Trust will not be under any obligation to provide you with an alternative benefit or any compensation in respect of these benefits.
You will be able to access a confirmation statement on this website from Northern Trust stating the basis on which your choices are offered to you. You will be able to view this statement all year round in the 'your choices' section of this website.
If you do not get approval for any of your chosen benefits for any reason:
Benefit choices made during the Benefit eXchange annual enrolment period, by eligible employees will start the following 1st January, subject to the required approvals described above.
The 'cycle to work' benefit has two enrolment opportunities during the year. If you choose the benefit during the mid-year enrolment opportunity, your benefit choices will become effective on 1st June, subject to the required approvals described above.
If you join Northern Trust or become eligible for Benefit eXchange after the cut-off for 1st January enrolments, you will be treated as a 'new joiner' under Benefit eXchange. A default benefits package will apply from your first day at Northern Trust. Any benefit choices that you make will take effect from the first of the month following the latest date for submission of your enrolment form on the Benefit eXchange website. This is subject to the approvals described above and provided your submission is made by the penultimate working day of the previous month.
Depending on when you join in the month, you will either have until the penultimate working day of that month or the penultimate working day of the following month to make your choices. You will have been advised of how long you have to make your choices when you joined. If you do not make your benefit choices in this timeframe, you will receive your default benefits and you will not be able to make any changes to your benefits for that Benefit eXchange year, unless you have a life event.
The majority of benefits will continue to run unless you specify otherwise (e.g. by making changes to your benefits at annual enrolment or if you experience a life event, or you stop being eligible for Benefit eXchange). However, some of the insurers have certain age restrictions that may result in the benefit stopping part-way through a Benefit eXchange year if you, your partner, or children reach this maximum age. In these cases, cover may cease on the date you, your partner or children reach the maximum age and all future salary sacrifice arrangements in relation to that particular benefit will stop at the end of that month. Click on the individual benefit options to find out more information about age restrictions.
If you have elected a bicycle under the 'cycle to work' benefit mid-way through a year, the salary sacrifice for this benefit will stop at the end of 12 months from when it started.
If you don't make and submit your benefit choices by the end of annual enrolment (which for the 2020 benefit year is in early December 2019), or the end of your initial enrolment if you join mid-year, you will receive the following default benefits (those automatically allocated to you):
| Benefit | Default position for 2020 benefits - new joiners | Default position for 2020 benefits - current employees |
|---|---|---|
| Holiday | Your current entitlement i.e. No holiday bought or sold | Your current entitlement i.e. No holiday bought or sold |
| Charitable donations | No selection | Your current selection |
| Childcare vouchers (for employees enrolled prior to September 2018) | N/A | Your current selection |
| Critical illness (for me and my partner) | No selection | Your current selection |
| Cycle to work | No selection | No selection unless you chose to begin participating in cycle to work mid-year, in which case this benefit will default to your current selection. |
| Dental cover | No selection | Your current selection |
| Health assessment |
Where an employee has a company funded benefit: Wellbeing Plus Health assessment All other employees: No Health assessment |
Where an employee has a company funded benefit for the 2020 year: Wellbeing Plus Health assessment All other employees: No Health assessment |
| Income protection | 60% of reference salary paid for a maximum of five years (or if earlier, until later of age 65 or state pension age) | Your current selection |
| Life assurance for me | Nine times reference salary | Your current selection |
| Life assurance for my partner | No selection | Your current selection |
| Pension | Core contribution of 7% of pensionable salary only. | Your current selection (PGE, Gold and/or AVCs, Exchange AVCs) |
| Private medical insurance | Single cover | Your current selection |
| Share Purchase | No selection | Your current selection |
You may be able to change certain benefit choices during the Benefit eXchange year if your personal circumstances change significantly. Such changes are referred to as life events. Click here to see what the main life events are. For further details, please contact the Benefit eXchange helpline on 0800 916 8016 or email benefitexchange@willistowerswatson.com to confirm which benefits you can change for each life event.
To request a life event, you will need to contact the benefits helpline on 0800 916 8016 or by email at benefitexchange@willistowerswatson.com.
Please note:
Changes as a result of a qualifying life event must be actioned within 30 days from the date of the life event occurring, or 90 days if the change is due to the birth or adoption of a child. If you do not open a life event in this timeframe, you will not be able to make any changes to your benefits unless you have another life event. You should complete and submit your life event enrolment form on this website to make your life event changes. The changes to your benefits will take effect from the first of the month following your submission of your enrolment form, provided that your enrolment form is submitted by the penultimate working day of the previous month. Your choices are subject to approval by Northern Trust and acceptance by any relevant benefit provider.
Any changes in your reference salary or working hours during the Benefit eXchange year will not affect the cost of your chosen benefits, except pension contributions. If your pensionable salary changes during the Benefit eXchange year, your pension contributions and any pension benefit will be adjusted in accordance with the relevant pension plan rules.
If you change your working hours by more than 15%, this is considered a life event and you will be able to review some of your benefit choices.
Any benefit payable under 'Life assurance for you' or 'Income protection' will be determined on your reference salary at the point of claim, in accordance with the relevant Life assurance plan rules, and subject to the insurer’s terms and conditions including, but not limited to, maximum salary and benefit limits.
Salary sacrifice is an arrangement where you exchange part of your contractual salary for one or more non-cash benefits from Northern Trust, which can result in income tax and National Insurance savings. Note that this is a variation to your contractual terms and conditions of employment.
All benefits in Benefit eXchange, with the exception of Gold pension contributions and AVCs, operate on a salary sacrifice basis. Gold pension contributions and AVCs will normally attract income tax relief but will be subject to National Insurance contributions.
In certain circumstances, for example, when you are receiving income protection or on some forms of unpaid absence, your benefits may be paid for via a net pay deduction instead of salary sacrifice. This is where we are unable to sacrifice your salary.
Your payslip can be downloaded from My Place.
On your payslip, each of your benefit choices will be listed along with the associated cost of that choice. Please refer to this example.
By receiving benefits under a salary sacrifice arrangement, there will be a reduction in your contractual salary and there may be a reduction in the amount of National Insurance contributions and income tax you pay (if you receive tax and/or National Insurance contributions exempt benefits under Benefit eXchange). This could affect the level of certain State benefits you may be eligible to receive, including statutory maternity pay. For further information on State benefits, please see the Department for Work and Pensions website at http://www.gov.uk/browse/benefits/.
Any salary sacrifice arrangement will not affect any salary-related benefits you receive from Northern Trust. This is because your salary will be recorded and maintained as your reference salary before you make any choices under Benefit eXchange. This reference salary will be the salary that is used to calculate other salary-related benefits and compensation.
You will not be permitted to make choices that reduce your gross salary below either the national minimum wage or national living wage. If your choices would have the effect of reducing your salary to below either the national minimum wage or national living wage, you will be asked to adjust your choices accordingly. The salary sacrifice will not be applied to reduce any other minimum levels of pay which you may be eligible to receive in accordance with any statutory requirements (such as statutory maternity pay).
Also, please bear in mind that if the value of your choices takes your remaining pay below the State lower earnings threshold, it could affect your entitlement to certain State benefits.
Benefit eXchange has been designed to help you make tax savings in relation to your benefits package wherever possible. Under salary sacrifice, certain benefits will be free from income tax and/or National Insurance contributions.
The summary information on income tax and National Insurance is correct as at 6th April 2019 (for UK residents). However, it is summary information only. The law governing the tax and National Insurance treatment of benefits is complex and may change at any time. The information provided is not therefore a substitute for obtaining your own professional advice, which will be influenced by your personal circumstances.
You should be aware that if the tax legislation and/or the guidance from HM Revenue & Customs (HMRC) changes so that more income tax or National Insurance contributions are due on any of the benefits you have chosen through Benefit eXchange, you will be responsible for such additional amounts due. You will be notified of any such changes as soon as reasonably practicable.
See also “Your payslip”.
For employees, income tax and National Insurance contributions are generally collected on employee's earnings through the PAYE system operated by employers. You will be allocated a tax code by HM Revenue & Customs (HMRC) based on your personal allowances and other income (such as benefits-in-kind) and your employer deducts the tax due according to that code and pays it over to HMRC.
Under Benefit eXchange where you elect to receive benefits which are subject to income tax this will be collected through the payroll on a monthly basis.
If you elect to reduce a benefit and instead receive cash, this will be subject to both income tax and National Insurance contributions.
If you are on maternity, paternity, parental or adoption leave, you are eligible for Benefit eXchange and the benefits you have chosen for the Benefit eXchange year will continue (subject to the terms and conditions of each benefit and Northern Trust's maternity, paternity, parental and adoption policy). For more information see the FAQs for each benefit description or raise a MyHRHelp case via My Place.
There are a number of life events that are related to taking maternity, paternity, parental or adoption leave, which would enable you to choose to change some of your benefits. These include: (a) commencing maternity, paternity, parental or adoption leave, (b) receiving only statutory maternity, paternity, shared parental pay or adoption pay and (c) the birth or adoption of a child. For example, you may want to include your new child in your private medical insurance cover. Note, however, that for some benefits, you will only be permitted to make two life event changes each year and there may be other restrictions on the type of change that can be made. For further details on life events, please see above. For more information on the maternity policy, please refer to My Place.
During maternity, paternity, parental or adoption leave your existing salary sacrifice arrangements will continue. If you make benefit choices during maternity, paternity or adoption leave your salary sacrifice may be adjusted on your return or you may need to make advance payments from net pay (depending on the benefit choice). For further information see the FAQs for each benefit description.
If you are on sick leave of less than 26 weeks, the benefits you have chosen for the Benefit eXchange year will continue (subject to the terms and conditions of each benefit and Northern Trust's sick leave policy). For more information on the sickness policies, please refer to My Place.
Salary sacrifice arrangements will continue as normal during sick leave of less than 26 weeks, except that the salary sacrifice arrangement will be applied to any discretionary company sick pay which you may be eligible to receive.
Absence from work on prolonged sick leave is a life event, which means you can choose to change some of your Benefit eXchange benefits, if you wish to do so, at that commencement of absence.
If you are absent from work on sick leave for a period of 26 weeks or more as a result of incapacity, you may be eligible for an income protection benefit, subject to the terms of Northern Trust's income protection scheme. If you are absent from work for more than 26 weeks Northern Trust may change the benefits which are available to you at its discretion. In particular, Northern Trust may choose to stop any salary sacrifice and revert the payment of benefits to a net pay deduction. The acceptance of a claim for income protection is also treated as a life event under Benefit eXchange. For more information see the FAQs for each benefit description. Please note, however, that for some of the benefits, you will only be permitted to make two life event changes each year and there may be other restrictions on the type of change that can be made. For further details on life events, please see the Life event matrix.
If you take a period of approved extended unpaid leave of absence whilst you will continue to be eligible for the Benefit eXchange benefits you have chosen, you will not be able to fund all of these by salary sacrifice. Insurances should be paid out of net pay before you go on leave and other benefits will need to be paid for when you return to work. For more information see the FAQs for each benefit description.
In the month that you stop being eligible for Benefit eXchange (for example, the month in which your employment terminates), your salary sacrifice arrangement will be applied in full for that month for certain benefits (e.g. childcare vouchers, health assessments) and pro-rated for others (e.g. holiday "buy"/"sell", insurances) even if you leave Benefit eXchange part-way through the month, in accordance with the terms and conditions of each particular benefit. You agree that any additional sum owed by you to Northern Trust under Benefit eXchange, including any repayment obligations on you (e.g. relating to a bicycle) may be deducted from your salary for your final month of participation in Benefit eXchange and/or from any other payment(s) due from Northern Trust or any associated company. To the extent such amount is greater than your final month's salary payment, you will immediately repay the amount to Northern Trust on demand.
When you stop being eligible to participate in Benefit eXchange, your benefits (including any benefits chosen for your partner and children) will terminate.
Charitable donations: You will receive a full month's worth of donations in the month that you leave and you can make use of any remaining funds in your CAF account.
Childcare vouchers: You will receive a full month's worth of vouchers in the month that you leave and you can make use of any remaining childcare vouchers credited to your account.
Critical illness insurance for me and my partner: Your insurance will end on the day you leave employment with Northern Trust and you will only 'pay' for the benefit that you receive.
Cycle to work: The terms of your lease through Benefit eXchange will stop on the day you leave Northern Trust and you will be required to pay a termination fee based on the outstanding hire charges of the contract. This will be deducted from your final net salary payment. You will also need to decide on the options available to you with the cycle scheme provider following termination of the lease through Benefit eXchange.
Dental insurance cover: Your insurance will end on the day you leave employment with Northern Trust and the monthly premium will be pro-rated accordingly.
Income protection: Your insurance will end on the day you leave employment with Northern Trust.
Health assessments: If you are funding your health assessment you should take your health assessment before the end of the Benefit eXchange year in which you leave or stop being eligible. The rest of the annual charge will be deducted from your final net salary payment. No refund of deductions will be made.
Holiday: A full reconciliation will be conducted on the day that you leave and an appropriate adjustment will be made to your final salary payment when you leave.
Life assurance: Your insurance will end on the day you leave employment with Northern Trust and where you have increased your benefit entitlement, the monthly premium will be pro-rated accordingly.
Pension: Contributions to your Northern Trust pension plan will be pro-rated in the month that you leave. Benefits will be subject to the rules of the relevant Northern Trust pension plan.
Private medical insurance: Your insurance will end on the day you leave employment with Northern Trust and where you have increased your company benefit, the monthly premium will be pro-rated accordingly.
Share purchase: Your final monthly share purchase amount will be applied to your share purchase account in the month that you leave.