My Bundle: your flexible benefits

Transcription

1 My Bundle: your flexible benefits

2 Contents 3 Welcome 4 Before you start 5 Salary exchange 6 Benefits overview 7 Lifestyle 7 Cars 8 Childcare vouchers 9 Cycle to work 10 Travel insurance 11 Protection 11 Additional life assurance self 12 Life assurance partner 13 Critical illness insurance self 14 Critical illness insurance partner 15 Personal accident insurance 16 Health 16 Dental insurance 17 Healthcare cashplan 18 Health assessment self 19 Health assessment partner Choosing your benefits Jargon buster 23 Open market comparisons mybundle.myroyalmail.com 2

3 Welcome My Bundle is your dedicated flexible benefits programme. It allows you to choose benefits to suit you, your family and your budget. As a large company, we are able to arrange lower provider rates that are better than elsewhere, giving you even better value for money. See page 23 for some examples. Lifestyle benefits help you make the most of your leisure time and to balance work with your personal life. Lifestyle The cars, childcare vouchers and cycle to work benefits are available at any time throughout the year. You need to pick the other benefits each year during the annual enrolment window. However, eligible new joiners will have 30 days from their date of joining Royal Mail Group to make their choices outside of this window. Look out for one of these icons on each page. Cars Childcare vouchers ANYTIME ANNUAL TAX Cycle to work Travel insurance Protection benefits help you plan for the future and provide income in times when you might not be working. Protection Additional life assurance self Life assurance partner Critical illness insurance self Critical illness insurance partner Personal accident insurance Health benefits give you options to look after your health and make medical bills easier to manage. Health Dental insurance Healthcare cashplan We have also introduced affordability checks to help make sure you do not over spend. From 1 April 2016, you will only be able to choose benefits using your basic pay above the National Minimum Wage (or the National Living Wage if you are aged over 25). Important note: Some of the benefits we offer need a significant financial commitment from you. You should consider the cost of each benefit very carefully and you may want to get independent financial advice. We cannot provide this for you. This booklet gives you an overview of the benefits available to you. You can find more information about all the benefits by logging into My Bundle at mybundle.myroyalmail.com. If you have not been on the My Bundle site before to add a preferred address to your profile, you will need to reset your password. We will send this to your home address within three to five working days. We also offer a range of retail discounts as well as these flexible benefits. The discounts are also available through My Bundle. If you have any questions about your benefits or need help using the My Bundle website, phone the My Bundle helpline on (or if you are calling from outside the United Kingdom). The helpline is open Monday to Friday, 8.30am to 5pm (Tuesday from 9am), not including bank holidays. Health assessment self Health assessment partner 3

4 Before you start My Bundle is where you can choose and manage your benefits take a look at our Choosing your benefits section on page 20 for a step-by-step guide on how to make your choices. Choosing your benefits Annual benefits Most of the choices on My Bundle are annual benefits. This means you can only choose, change or stop those benefits once a year, during the enrolment window, unless you have a life event (see opposite). Annual benefits start from 1 April if you are paid monthly, or the first Monday of April if you are paid weekly. There are certain situations when you can make changes to an annual benefit outside the enrolment window. For example, if you are new to Royal Mail Group, you can choose some of the benefits shortly after you join. Anytime benefits There are also choices that are anytime benefits. You can log into the My Bundle site and choose these benefits whenever you like. But, you ll need to remember that some of these benefits will mean you have to agree to a lease period when you choose them. You can also change many of your benefit choices if you have a qualifying life event. Life events Sometimes your personal situation can change at work or at home, which means the benefit choices you have are no longer suitable. We call these changes life events. If you have a life event, you may be able to start, stop or change your benefits outside the enrolment window. For example, if you have a child, it could affect the level of life cover you want, or you may want to upgrade an insurance benefit to include family cover. We pick some life events automatically for you through payroll and others you can declare yourself on My Bundle within 30 days of them happening. An election window will then open for you to make any changes needed and you will have 14 days to complete your choices. If you have any questions about life events, phone the My Bundle helpline on (or if you are calling from outside the United Kingdom). The helpline is open Monday to Friday, 8.30am to 5pm (Tuesday from 9am), not including bank holidays. Automatically chosen Going on or returning from maternity, paternity or adoption leave If your basic pay is increased or reduced by over 10% Going on or returning from extended unpaid leave Self-selected Gain a dependant birth or adoption of a child Gain a dependant marriage or civil partnership Lose a dependant death of a dependant Lose a dependant divorce or legal separation Only the life events shown above allow you to change your benefit choices. We recommend that you think carefully about what benefits you might need for the next 12 months. 4

5 Salary exchange When you choose your benefits through My Bundle, you are legally asking us (as your employer) to change your employment contract. This is because you are asking us to pay for your chosen benefits on your behalf and to reduce your before-tax pay by the amount the benefit costs. This reduction means that you could save income tax and National Insurance () contributions at the following rates. You can find more details for each benefit in this booklet. If you pay basic-rate tax, you could save 20% tax and, most people could save 12% National Insurance. If you pay higher-rate tax, you could save 40% tax and, most people could save 2% National Insurance. If you pay additional-rate tax, you could save 45% tax and, most people could save 2% National Insurance. It s important to remember that this does not affect any of your other terms and conditions of employment. Paying tax If the benefit you choose means you have to pay tax, we will add the cost of the benefit to your P11D form. This form is used to report benefits to HMRC that do not get taxed through PAYE. This makes sure your tax code will be adjusted to take account of the taxes due. This process happens automatically and we will send you a copy of the form. When will my salary exchange payments start? They will start after the enrolment window has closed and we have reviewed and confirmed all your benefit choices. If you are paid weekly Your reduced pay will start on the first Monday after making your choices in the enrolment window. After a life event or after joining Royal Mail Group, this will be the second Monday after you have confirmed your choices. See life events for more information. If you are paid monthly Your reduced pay will start on the first of the following month after confirming your choices. We have designed salary exchange so that as many colleagues can benefit as possible. However, because of how certain laws work, some colleagues could be financially worse off if they take part. To make sure this doesn t happen, we check that any flexible benefit choices would not have a negative effect on employees who: would be brought below the National Minimum Wage (or National Living Wage if aged over 25) by taking part in salary exchange, for example through childcare vouchers; are on Statutory Sick Pay with no extra payments from us; or are on unpaid leave, for example, a career break or seconded to another employer and paid on another payroll system. You can find more information about salary exchange and how it might affect you on the My Bundle site. 5

6 Benefits overview Here is a summary of the benefits available to you. Benefit TAX ANYTIME ANNUAL Lifestyle Cars Childcare vouchers Cycle to work Travel insurance Protection Additional life assurance self Life assurance partner Critical illness insurance self Critical illness insurance partner Personal accident insurance Health Dental insurance Healthcare cashplan Health assessment self Health assessment partner Depends on the actual car you have chosen Anytime Anytime Anytime Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual 6

7 Lifestyle Cars This benefit lets you choose a brand-new car with a whole range of features and services included at a low cost. Zenith provides this benefit. You can choose from a wide range of makes and models all brand new and environmentally-friendly, with low carbon-dioxide emissions and fuel consumption. You then decide on the lease period either a two-, threeor four-year contract. The cost of the car is then spread evenly across the lease period. The cost includes services, maintenance and insurance. You ll also receive a courtesy car if your car is out of action. You can name other drivers on the insurance for your car and you can lease up to two cars through the scheme. However, this will depend on the affordability criteria shown on page 3. Eligibility You can choose this benefit if you meet all the following criteria. You must be aged 18 or over. You must have 12 months or more continuous service at Royal Mail Group. You must have enough pay to cover the amount needed for the car you choose. From 1 April 2016, you cannot exchange your pay below the level of the National Minimum Wage (or National Living Wage if you re aged 25 or over). You must meet the insurance eligibility criteria that you can find in the insurance section of the scheme policy, available on My Bundle. You must have a valid UK driving licence. You must not be on unpaid leave or on a career break. This benefit involves a significant financial commitment from you and you will need to sign a financial agreement. visit Zenith s website and browse the choice of cars available; and read more about the practical details of this benefit from choosing your car to taking delivery and arranging services. Once your contract starts, you are committed to paying for the benefit for the length of that contract. You can t change or end the agreement, even if you have a life event. You should consider the cost of this benefit very carefully and you may want to get independent financial advice. We cannot provide this for you. This is an anytime benefit so you can choose it all year round. Once your contract starts, you are committed to the benefit for the length of that contract. You can t change or end the agreement, even if you have a life event. You do not pay National Insurance on this benefit. However, you do pay tax using a tax-code adjustment but generally this should be less than the tax you would have paid on the pay you have exchanged for the car. We will work out a benefit in kind (BIK) charge by multiplying the list price of the company car by a percentage. The percentage depends on the CO 2 emissions of the vehicle so, the greener your choice of car, the lower the tax amount. You can find more guidance on the HMRC website at: ANYTIME You choose a car from Zenith in this example a Ford Fiesta Zetec five-door hatchback. Over a four-year period, the lease cost would be 248 a month or a week. Thanks to the tax and National Insurance savings, the actual cost to you will be nearer 203 a month if you pay 20% tax ( 212 a month if you pay 40% tax, or 208 a month if you pay 45% tax). This amount includes the BIK charge. The monthly (or weekly) cost you pay covers the cost of the car, insurance, maintenance and servicing, tyres, road tax, breakdown cover, and a 24-hour managed service to look after all your motoring needs. 7

8 Childcare vouchers Childcare vouchers make it easy for you to plan and organise payments for your childcare and make some tax savings at the same time. If you are already in the childcare vouchers scheme, your vouchers will stay the same and can be managed on My Bundle. P&MM provides this benefit. You choose the amount in childcare vouchers you want each pay period and the money goes into your online childcare account. You can then use the account to pay for any registered childcare, in regular or one-off amounts, as and when you need it. If your partner also works for us, they can choose this benefit too so you could double your savings. The vouchers must go to a registered childcare provider, which includes: a childminder, qualified nanny or au pair; a nursery, playgroup or pre-school; or after-school and holiday clubs. You can t use the account to pay relatives unless they are registered to provide childcare. The tax you can save depends on when you first used childcare vouchers, and how much you earn. We limit the vouchers you can choose to the highest amount you can receive tax-free. visit the Childcare Plus site to register for the benefit and add your carer to the scheme if you need to; and visit the HM Revenue & Customs website to find out more about the tax savings at library/employee-qa.pdf. This is an anytime benefit so you can start it, stop it or make changes to it all year round. If you first used childcare vouchers in our scheme before 6 April 2011, you can choose up to 243 of vouchers a month (or 55 a week), tax-free. Otherwise, if you choose vouchers after 5 April 2011 and pay: basic-rate tax (20%), you can still receive vouchers up to 243 a month ( 55 a week) tax-free; You currently earn 25,000 which means you pay basic-rate tax. This means that you could receive up to 2,916 of tax-free vouchers over the whole year, or 243 a month or 55 a week. In that time, you would save 934 on your tax and National Insurance each year. higher-rate tax (40%), the limit is 124 a month ( 28 a week) tax-free; additional-rate tax (45%), the limit is 110 a month ( 25 a week) tax-free. You do not have to pay National Insurance on this benefit. ANYTIME TAX 8

9 Cycle to work You can use this benefit to hire a bike for your journey to and from work. It s a chance for you to keep fit, do your bit for the environment and save money. P&MM provides this benefit. You can choose an amount between 100 and 1,000, in multiples of 5, towards hiring a bike and accessories. We spread this amount across an 18-month hire period. There are two ranges of bikes and equipment to choose from: Cycle2work (run by Halfords); or Cycleplus (a network of independent cycle shops). The accessories you choose have to be practical and suitable for your journey for example, lights, locks or repair kits. You can t choose, for example, sporting gear or bike computers. At the end of the hire period, you may be able to buy the bike at its fair market value or simply return the bike. Important notes You must use the bike mainly for your journey to and from work. You can ride it at other times, but over half its use should be for your journey to or from work otherwise you don t qualify for the tax savings. Bear in mind, though, that once the hire period starts, you are committed to paying for the benefit for the length of that contract. You can t change or end the agreement, even if you have a life event. visit the Cycle2work and Cycleplus websites to browse the bikes and accessories on offer; and read more about the rules for hiring the bike and what happens once the 18 months are up. This is an anytime benefit so you can choose it all year round. Once the hire period starts, you are committed to paying for the benefit for that length of time. You can t change or end the agreement, even if you have a life event. You don t have to pay tax or National Insurance on this benefit as long as the main use is for travelling to or from work. ANYTIME TAX You decide to hire a bike and accessories worth 800 from Cycleplus, which means your pay is reduced by a month or a week. Once you take the tax and National Insurance savings into account, the cost to you is 30 a month or 7 a week. 9

10 Travel insurance This benefit gives you peace of mind when you re on holiday, knowing that if anything unexpected happens to you or your family, you will be covered. Zurich Insurance plc provides this benefit. The travel insurance policy covers holidays of up to 45 days for each trip and up to a total of 22 days for winter sports throughout the year. It also includes travel within the UK, as long as the trip involves two or more nights away. You can choose cover for Europe only, or worldwide. You can add your partner, your family or both to the benefit, as long as they qualify. If you go for the family option, the cover will also include any dependent children on the holiday. You can find out more details on the My Bundle site about what we mean by dependants. You can choose any level of cover during the annual enrolment window. visit Zurich s website for more details about the insurance and how to claim while you re abroad; and check that your family meet the conditions to qualify for the benefit (for example, it will only include children up to a certain age). DISCOUNT OFFER You ll get 10% off the cost of this benefit if you choose personal accident insurance as well. This is an annual benefit so you ll only be able to start it, stop it or make changes to it during the annual enrolment window. However, it s available to you if you re a new joiner choosing your benefits for the first time. You may also be able to change your cover if you have a life event. You pay tax on this benefit, but you don t have to pay National Insurance. ANNUAL You have a big family holiday planned for the year, so you decide to buy worldwide travel insurance for everyone which is 9.11 a month or 2.10 a week. However, you also have personal accident insurance so, with the 10% discount it will actually be 8.20 a month or 1.89 a week for your travel cover. 10

11 Protection Additional life assurance self As an employee of Royal Mail Group, you already receive a certain level of life assurance, which you can see on your total reward statement. This additional benefit allows you to pay towards additional life cover. Zurich Assurance Limited provides this benefit. You can choose levels between 25,000 and 1 million, as long as it is no more than 15 times your basic pay and as long as you are actively working for Royal Mail Group. If you want to change your additional cover in future enrolment windows, you can either: increase your cover by one level at a time; or lower your cover to any level you like. You also need to remember that the provider has an overall limit of 1.8 million on the cover available that is, your basic life assurance plus whatever amount you decide to add. You will be restricted to your maximum cover available by the My Bundle site. If you don t choose life assurance cover at your first opportunity, you can only choose cover of 25,000 in the next annual enrolment window. You can then increase your cover by one level at each annual enrolment. You may also be able to choose or change your cover if you have a life event. This is available to all employees who are aged 73 or under on 1 April 2016 and actively working. Actively working means that you are fully able to carry out your job so you can t be on long-term sick leave or working fewer hours because of illness or injury. find out more details about the insurance; and check the level of cover available to you. DISCOUNT OFFER You ll get 10% off the cost of this benefit if you also choose either: life assurance for your partner; or critical illness insurance for either yourself or your partner. This is an annual benefit so you ll only be able to start it, stop it or make changes to it during the annual enrolment window. However, it s available to you if you re a new joiner choosing your benefits for the first time. You may also be able to change your cover if you have a life event. You do not have to pay tax or National Insurance on this benefit. ANNUAL TAX You re 45 years old, earning 25,000 a year, and choosing this benefit for the first time. The highest extra cover you can start with is 300,000 (as 15 x 25,000 comes to 375,000). You choose 50,000 which is 3.72 a month or 0.86 a week but as you also choose critical illness insurance, you get a 10% discount, bringing it down to 3.35 a month or 0.77 a week. Next year, you can increase your cover by one level to 75,000, or lower it to any level you want to. 11

12 Life assurance partner This benefit provides a tax-free lump sum if your partner dies. You can choose it for them separately on My Bundle (if you don t want to have additional life assurance for yourself). It works in a similar way to additional life assurance, but there are two major differences. The maximum level of cover available is 500,000. Your partner will have to answer some medical questions before qualifying for the benefit. Zurich Assurance Limited provides this benefit. You can choose cover for your partner in levels of 25,000 up to 100,000, and then in levels of 100,000 up to 500,000. If they want to change the cover in future annual enrolment windows, they can either: increase the cover (depending on them answering some questions about their health); or find out more details about the insurance; and check that your partner meets the conditions to qualify for the benefit. lower the cover to any level they want to. Your partner will have to answer some medical questions for this benefit before they can receive cover. You can find an outline of the questions and a link to the application form on the My Bundle site. DISCOUNT OFFER You ll get 10% off the cost of this benefit if you also choose either: additional life assurance for yourself; or critical illness insurance for either yourself or your partner. This is an annual benefit so you ll only be able to start it, stop it or make changes to it during the annual enrolment window. However, it s available to you if you re a new joiner choosing your benefits for the first time. You may also be able to change your cover if you have a life event. You have to pay tax on this benefit for your partner. But you still don t have to pay National Insurance. ANNUAL You re choosing this benefit for the first time for your partner, who is 45, and you choose 200,000 of cover. This level of cover is a month, or 3.37 a week but as you also choose critical illness insurance, you get a 10% discount, bringing it to a month, or 3.03 a week. Next year, you can increase or lower your cover to any level. 12

13 Critical illness insurance self This benefit pays you a one-off tax-free lump sum if you become seriously ill. It aims to help with some of the financial pressure that can come with medical bills, or a lower income resulting from illness. Canada Life provides this benefit. The available levels of cover are as follows. 25,000 50,000 75, , , , , ,000 You can elect any cover up to 200,000, over 200,000 you can t go higher than five times your pay. FREE CHILDREN S COVER You can choose any level up to 200,000, no matter what your annual pay is. If you re planning to choose cover of more than 200,000, you can t go higher than five times your annual pay. If you want to change your extra cover in future annual enrolment windows, you can either: increase your cover by one level at a time; or lower your cover to any level you like. If you don t choose critical illness cover at your first opportunity, you can only choose cover of up to 100,000 in the next annual enrolment window. You can then increase your cover by one level at each annual enrolment or qualifying life event. You may also be able to change your cover if you have a life event. This benefit includes your children automatically, at no extra cost. They will be covered for 25% of the level you choose, up to 20,000. see the policy document showing the illnesses that this benefit covers (the insurance does not include conditions you may already have); and check that your children meet the conditions to qualify for the benefit. You are 45 years old and earn 25,000 a year, which means you can choose any level up to 200,000. You choose 50,000 which is a month, or 2.90 a week or a month or 2.61 a week if you get the 10% discount. Your children will be automatically covered for 12,500. DISCOUNT OFFER Next year, you can increase by one level to 75,000 or lower it to any level you want. You ll get 10% off the cost of this benefit if you also choose either: additional life assurance for yourself or your partner; or critical illness insurance for your partner. This is an annual benefit so you ll only be able to start it, stop it or make changes to it during the annual enrolment window. However, it s available to you if you re a new joiner choosing your benefits for the first time. You may also be able to change your cover if you have a life event. You will have to pay tax on this benefit but you don t pay National Insurance. ANNUAL 13

14 Critical illness insurance partner You can choose critical illness insurance for your partner (depending on the terms and conditions on the My Bundle site) separately from whether or not you choose the benefit for yourself. Canada Life provides this benefit. The available levels of cover are as follows. 25,000 50,000 75, , , ,000 Everything works in the same way as the critical illness self benefit. Your children are still automatically covered at no extra cost to you, and you get a 10% discount if you choose a life assurance benefit for yourself or your partner or critical illness insurance for yourself. If you don t choose critical illness cover for your partner at your first opportunity, you can only choose cover of up to 100,000 in the next annual enrolment window. You can then increase your cover by one level at each annual enrolment. see the policy document showing the illnesses that this benefit covers (the insurance does not include conditions your partner may already have); and check that your children meet the conditions to qualify for the benefit. FREE CHILDREN S COVER This benefit includes your children automatically, at no extra cost. They will be covered for 25% of the level you choose, up to 20,000. This is an annual benefit so you ll only be able to start it, stop it or make changes to it during the annual enrolment window. DISCOUNT OFFER You ll get 10% off the cost of this benefit if you also choose either: additional life assurance for yourself or your partner; or critical illness insurance for yourself. However, it s available to you if you re a new joiner choosing your benefits for the first time. You may also be able to change your cover if you have a life event. You will have to pay tax on this benefit for your partner but you still don t pay National Insurance. ANNUAL You re choosing this benefit for the first time for your partner, who is 45, and you choose 200,000 of cover. This level of cover is a month, or a week but as you also choose critical illness insurance for yourself, you get a 10% discount. This brings it down to a month, or a week. Next year, you can increase your cover by one level to 250,000, or lower it to any level you want to. 14

15 Personal accident insurance Sometimes it s worth expecting the unexpected. This benefit will give you some extra support if you or someone in your family has an accident. It pays a lump sum, which will vary depending on the injury. ACE Group provides this benefit. You can choose cover in levels of 25,000, up to 100,000, and then levels of 100,000, up to 1 million (or 15 times your pay, whichever is lower). You can also add your family to the benefit. If you choose this option, the benefit will cover your partner and any children you have, as long as they qualify. You can choose any level of cover during the annual enrolment window. read more details about the injuries covered by the benefit, as well as the exclusions in other words, certain types of injuries it does not cover (for example, self-harm or repetitive strain injury); and check that your family meet the conditions to qualify for the benefit (for example, it will only include children up to a certain age). DISCOUNT OFFER You ll get 10% off the cost of this benefit if you choose travel insurance as well. This is an annual benefit so you ll only be able to start it, stop it or make changes to it during the annual enrolment window. However, it s available to you if you re a new joiner choosing your benefits for the first time. You may also be able to change your cover if you have a life event. You pay tax on this benefit, but you don t have to pay National Insurance. ANNUAL You re 45 years old, earning 25,000 a year, and choosing this benefit for the first time. The highest extra cover you can start with is 300,000 (as 15 x 25,000 comes to 375,000). This level of cover is 1.32 a month or 0.30 a week but you decide to add your family at 300,000, which is 3.17 a month or 0.73 a week. As you have three kids, the fact they are all included in the family cover feels like good value for money in exchange for the extra peace of mind. 15

16 Health Dental insurance You can use this benefit to help manage your dental costs whether for routine treatments (like your regular check-ups or visits to the hygienist) or treatment for accidents or injuries. National Dental Plan (NDP) provides this benefit. If you choose this benefit, you pay for your dental treatment as normal then claim a refund. There are different levels of cover to choose from. The refunds you re entitled to for various treatments will depend on the cover you choose. You ll be able to pick the level that offers refunds closest to your dentist s charges. You can also add your partner, children or both to the benefit, as long as they qualify. Anyone you add will be on the same level as you. You don t need a check-up before choosing the benefits, and you can still use your current dentist (or any dentist you choose). You can choose any level of cover during the annual enrolment window. see what each level of cover provides you with; and check that your family meet the conditions to qualify for the benefit (for example, you can only add children up to a certain age). This is an annual benefit so you ll only be able to start, stop or make changes to it during the annual enrolment window. However, it s available to you if you re a new joiner choosing your benefits for the first time. You may also be able to change your cover if you have a life event. You pay tax on this benefit, but you don t have to pay National Insurance. ANNUAL You and your partner have quite good teeth so you don t expect to be at the dentist too often. So you decide to go private for the occasional time you will need dental care. You choose Radiant 2 for both of you, which is a month, or 2.64 a week. 16

17 Healthcare cashplan You can use this benefit to help manage your medical costs whether for dental checks and eyecare or paying to see a specialist. Simplyhealth provides this benefit. If you choose this benefit, you pay for the treatment as normal and then claim a refund. Simplyhealth will refund the cost of your treatment usually within a few days straight into your bank account. There are four levels of cover to choose from. The refunds you re entitled to will depend on the cover you choose. You can also add your partner, children or both to the benefit, as long as they qualify. Children under 18 can be added free of charge to your cover, if you choose this cover. You can choose any level of cover during the annual enrolment window. find out more about the types of cover available; check that your family meet the conditions to qualify for the benefit (for example, you can only add children up to a certain age); and access Simplyhealth s online self-service website, available 24 hours a day, seven days a week. This is an annual benefit so you ll only be able to start it, stop it or make changes to it during the annual enrolment window. However, it s available to you if you re a new joiner choosing your benefits for the first time. You may also be able to change your cover if you have a life event. You pay tax on this benefit, but you don t have to pay National Insurance. ANNUAL You and your partner have two teenage children, so it s not always easy to keep track of what you might have to pay in medical bills, and when. For example, your 17-year-old can still receive free dental care, but may have to pay for an eye test. You decide that paying a fixed amount each month works better for you. Then, when the bills do come along, the benefit should cover some or all of the costs. You decide you can afford Level 1, which is 9.90 a month, or 2.28 a week to cover all four of you. 17

18 Health assessment self This benefit helps you to take control of your health. Health assessments can give you a clear understanding of how healthy you are and guidance on positive lifestyle and diet choices. Bluecrest provides this benefit. This benefit gives you a health assessment once a year, at a clinic or health centre convenient for you. There are two levels of assessment Core or Executive 365. Both options look at your general health and lifestyle, and include a wide range of tests for various conditions. You then get a report on your health along with your results. The benefit also includes a GP helpline during the year, free of charge. If you choose the Executive 365 assessment, you also receive a 12-month plan to help you keep a healthy lifestyle and sort out any problems that come up in the assessment. You also receive follow-up telephone appointments with a GP every three months to see how you re doing. visit the Bluecrest website to find out more about the two assessment options, and your nearest health centre; and see the steps you need to take to arrange your appointment. This is an annual benefit so you ll only be able to choose this during the annual enrolment window. However, it s available to you if you re a new joiner choosing your benefits for the first time. You can pick this benefit straight away. You don t have to pay tax or National Insurance on this benefit. ANNUAL TAX You feel you could look after yourself a bit better and make some changes to your diet and lifestyle. With that in mind, you choose a Core assessment. This choice is a month, or 2.88 a week but thanks to the tax and National Insurance savings, the net cost to you would be about 8.50 a month or 2 a week if you pay basic-rate tax, or about 7.25 a month or 1.70 a week if you pay higher-rate tax. 18

19 Health assessment partner You can choose a health assessment for your partner on My Bundle no matter whether or not you choose one for yourself. Bluecrest provides this benefit. The benefit works in the same way for your partner. They can choose either the Core or Executive 365 assessment, and make the appointment at their nearest clinic or health centre. visit the Bluecrest website to find out more about the two assessment options, and your partner s nearest health centre; and see the steps your partner needs to take to arrange their appointment. This is an annual benefit so you ll only be able to choose this for your partner during the annual enrolment window. However, it s available to you if you re a new joiner choosing your benefits for the first time. You have to pay tax on this benefit for your partner. But you still don t have to pay National Insurance. ANNUAL Your partner feels they could look after themselves a bit better and make some changes to their diet and lifestyle. With that in mind, you choose a Core assessment for your partner. This choice is a month, or 2.88 a week. 19

20 Choosing your benefits 1 Log in Log in to My Bundle with your username (your pay number) and password or through the People System Portal (PSP) if you use it. 2 Homepage On the homepage, click the Flexible benefits tile. mybundle.myroyalmail.com 3 Choosing your benefits: what to expect You ll see a screen showing you three steps to work through. You need to check your details are right, then browse through the benefits before confirming your choices Confirm the information Make sure the information about you is correct. You ll also need to add details of any family members you re planning to add to your benefits.

21 5 Choose your benefits 6 Choose your benefits Follow the second step to find the screen displaying all the benefits for you. Go to each of these links to find more details and start making your choices. You can try out different levels and mixes of benefits, to see the effect your choices would have on your pay. 7 Confirm your choices 8 Confirm your choices Finally when you have the choices you re happy with in place, you can Confirm your choices here. If you change your mind, you can log back in to My Bundle and change your benefit choices during the annual enrolment window but you must confirm them before the window closes. This does not apply to new joiners or life events, which will close as soon as you Confirm your choices. 21

22 Jargon buster Actively working This means that you are fully able to carry out your job. For example you re not actively working if you are off sick or working less than your full hours due to illness or injury. You may have to be actively working to choose some insurance benefits. Annual benefit This is a benefit that you can only choose, stop or make changes to once a year, during the enrolment window. You may be able to choose or change certain annual benefits outside the enrolment window, if you are a new joiner making choices on My Bundle for the first time, or you have a life event. Anytime benefit This is a benefit that you can choose at any time during the year. However, please remember that once you choose certain anytime benefits, you may not be able to change them again as freely. For example, if you choose Cycle to work, you are agreeing to a lease period for your bike and equipment. Benefit in kind (BIK) Some of the options on My Bundle are benefits in kind for tax purposes. We record these benefits on your P11D form and give this to HM Revenue & Customs. Your tax code is then adjusted to take these benefits into account. Child For those benefits where you can include your children, each child must be: the natural or adopted child of you or your partner; unmarried; and below a certain age. However, the age limits (and sometimes other conditions needed to qualify) can vary from benefit to benefit, so please check online for those benefits you re interested in. Exclusions Some insurance benefits don t cover particular situations or conditions for example, personal accident insurance will not cover repetitive strain injury or self-harm. These are called exclusions and you can normally find the details about them in the provider s information. Life event This is a change in your personal or work situation that could affect the benefits you ve chosen. s include gaining a partner, becoming a parent or getting a pay rise. If you have a life event, you ll be able to change certain benefits straightaway, without waiting for the next enrolment window. National Insurance contributions () You pay National Insurance contributions to build up your entitlement to certain state benefits. In the same way as income tax, National Insurance is paid out of the income you earn at rates, and up to limits, that are set by the Government. National Living Wage This is an hourly rate (higher than the National Minimum Wage) that employers can agree to pay for workers aged 25 and over. From April 2016, providing the living wage to these workers will become law. National Minimum Wage This is the minimum hourly rate workers above school leaving age are entitled to. The exact minimum wage that applies to you depends on your age. New joiner You are a My Bundle new joiner if you join Royal Mail Group or become eligible to join due to a change in role for example, moving from a casual to a permanent position. When you join, you will be able to choose certain annual benefits straightaway without waiting for the next enrolment window. Enrolment window The enrolment window is the time period each year when you can choose, change or stop annual benefits. It will normally be in March, so your benefit choices start from April. 22

23 Partner For those benefits where you can include your partner, they must normally be: legally married to you, or in a civil partnership with you; living with you. However, the age limits (and sometimes other conditions needed to qualify) can vary from benefit to benefit, so please check online for those benefits you re interested in. Salary exchange In salary exchange, you agree to a reduction in your pay in exchange for Royal Mail Group giving you a chosen benefit. You save National Insurance on the salary exchanged and you may save tax as well depending on the benefit chosen. Find more information about salary exchange on page 5. Open market comparisons Age-related benefits Age 25 Age 35 Age 45 Age 55 Level of Cover My Bundle Open Market My Bundle Open Market My Bundle Open Market My Bundle Open Market Monthly cost Additional life assurance self 50, Life assurance partner 50, Critical illness insurance self and partner 50, Not age-related benefits Level of Cover Monthly cost My Bundle Open Market Personal accident insurance 100, Travel insurance European cover Healthcare cashplan Level Dental insurance Level Note: All prices based on like-for-like cover comparison All prices correct as at November

24 Any questions? If you have any questions about your benefits, or about your total reward statement, phone the My Bundle helpline on or call if you are calling from outside the United Kingdom. The helpline is open Monday to Friday, 8.30am to 5pm (Tuesday from 9am), not including bank holidays. Legal note: Royal Mail Group has the right to withdraw, suspend or amend any of the My Bundle benefits, or salary exchange arrangements at any time, subject to any collective agreements that may apply. Nothing on the My Bundle website should be taken as financial or pensions advice. We (Royal Mail Group) cannot provide independent financial advice. If you want independent financial advice, please speak to a financial advisor or visit Royal Mail, the cruciform, Parcelforce Worldwide and the Parcelforce Worldwide logo are trade marks of Royal Mail Group Limited. Royal Mail Group Limited All rights reserved. Royal Mail Group Ltd, registered in England and Wales, number , registered office: 100 Victoria Embankment, London EC4Y 0HQ. Parcelforce Worldwide is a GLS network partner.