2016/2017 Flexible Benefits

Transcription

1 2016/2017 Flexible Benefits

2 At Phillips 66, we offer a wide range of competitive benefits but recognise that one size doesn t fit all. Flexible Benefits annual enrolment, 18 May through to 8 June, is your chance to take a fresh look at your benefits and choose the ones that best suit you and your family. Whether this is your first enrolment or your ninth, exploring your options and thinking about your coverage needs for 2016/2017 is time well spent. Why review your benefits? Because your enrolment elections impact your benefits for today, for tomorrow and for the unexpected, and the choices you made last year may not be the best for your current situation. For example: Do you need to add a new spouse or child to your medical or dental cover? Do you want to change your pension accrual or contribution rate? Has your spouse s/partner s work situation changed? Is your current life assurance cover still sufficient for yourself and/or your spouse/partner? Flexible Benefits annual enrolment is your opportunity to change the level of your Pension, Life Assurance, Private Medical Insurance, number of holidays and other benefits. This Guide is a great place to start as you make your elections for the upcoming Flex year. You must enrol in MyFlex by 8 June 2016 if you want to adjust your benefit choices. If you miss this deadline, you can t change your elections until annual enrolment 2017 unless you have a qualifying Life Event during the 2016/2017 Flex year. Your benefit choices will apply from 1 July.

3 What s Inside Flexible Benefits Plan: THE BASICS...2 What is Phillips 66 Flex?...2 Which Benefits are covered in Phillips 66 Flex?...2 Who is eligible for Phillips 66 Flex?...3 How does Phillips 66 Flex work?...4 How does my Flex Account work?...4 When can I enrol in Phillips 66 Flex?...4 What happens if I don t enrol?...5 What is a qualifying Life Event?...5 What happens if I leave Phillips 66 during the year?...6 Are my benefits subject to tax and/or National Insurance (NI)?...6 Where do I go for more information?...8 It s easy to ENROL...9 Step 1: Before you Enrol...9 Step 2: Enrol...9 Step 3: After you Enrol...9 Your 2016/2017 Flexible Benefits ENROLMENT CHOICES...10 Phillips 66 UK Pension Plan Defined Benefit Section (DB Plan) members only...10 Pension...10 Employee Life Assurance...10 Phillips 66 UK Pension Plan Defined Contribution Section (DC Plan) members only...10 Pension...10 Employee Life Assurance Group Income Protection Non-Pension related benefits Holidays Spouse/Partner Life Assurance Private Medical Insurance (PMI) Dental Insurance Childcare Vouchers Cycle2Work Charitable Giving

4 Flexible Benefits Plan: THE BASICS What is Phillips 66 Flex? The Phillips 66 Flexible Benefits Plan (Flex) offers many opportunities for you and your family to choose the benefits that suit you best whether you want to vary the level of your pension, gain access to numerous health options or provide financial security for your family. By participating in Flex you can decide which benefits you want, and either purchase these benefits through sacrifice or trade down on a benefit that you already have. With Flex, both you and the Company also get better value. By using group buying power, the Company can get better prices and rates than are normally available to individuals purchasing these benefits. Plus, for some benefits there may also be income tax and National Insurance savings if you buy through Flex rather than out of your take-home pay. If you choose to Flex any of your Benefits, the choices you make will roll forward from one year to the next (with the exception of Holidays and Cycle2Work) until you amend your Benefit choices, either at annual enrolment or if you have a qualifying Life Event. Which Benefits are covered in Phillips 66 Flex? Circumstances vary from person to person. To meet the diverse needs of employees, Flex offers a variety of benefits to support you through different stages of life. Here s a list of our Phillips 66 Flex options. Holidays; Pension; Employee Life Assurance; Spouse/Partner Life Assurance; Group Income Protection DC Plan; Private Medical Insurance (PMI); Dental Insurance; Childcare Vouchers; Cycle2Work; and Charitable Giving. As well as the Benefits listed above, within MyFlex, the online enrolment system, you ll also find a link to discounted Travel Insurance which can be purchased at any time of year. See page 10 for more detailed information to help you make your enrolment decisions. 2

5 Who is eligible for Phillips 66 Flex? Flex is open to all regular UK-payrolled Phillips 66 employees. However, your ability to participate in various benefits is determined by a variety of eligibility requirements. Important: Flex is not available to employees on inpatriate assignment (i.e. employees from other countries working in the UK). BENEFIT Holidays Pension DB Plan Pension DC Plan Employee Life Assurance DB Plan Employee Life Assurance DC Plan Spouse/Partner Life Assurance Group Income Protection Private Medical Insurance (PMI) Dental Insurance Childcare Vouchers Cycle2Work Charitable Giving WHO IS ELIGIBLE? All employees whose contract allows them to Flex their holidays. Active members of the Phillips 66 UK Pension Plan Defined Benefit Section (DB Plan). Active members of the Phillips 66 UK Pension Plan Defined Contribution Section (DC Plan). Active members of the Phillips 66 UK Pension Plan Defined Benefit Section (DB Plan). Active members of the Phillips 66 UK Pension Plan Defined Contribution Section (DC Plan). All employees with a spouse/partner age 16 to 70 as of 1 July of the current Flex year. Active members of the Phillips 66 UK Pension Plan Defined Contribution Section (DC Plan). All employees, except those on expatriate assignment who are covered under the Global Medical Plan. All employees. All employees with parental responsibility for a child who is up to age 15 (or 16 if disabled). All employees who are UK tax payers age 18 or over. All employees. To view eligibility requirements for all Benefit plans and programmes see UK HR Intranet/Benefits. 3

6 How does Phillips 66 Flex work? The Flex programme is delivered through a web-based system called MyFlex. Your MyFlex enrolment form shows your and Flex Account, together with the cost of each benefit option. You can retain your standard benefits package or, within MyFlex, you can choose to: Increase the level of existing benefit by spending some ; Select new benefits by spending more of your ; or Reduce the level of your Holiday, Life Assurance or Pension accrual (DB Plan members only) to release some value of your Flex Account. How does my Flex Account work? Each year, you re given a Flex Account which is the value of the standard core benefit entitlement for Pension accrual and Life Assurance if you re a member of the Phillips 66 UK Pensions Plan Defined Benefit section. If you re a member of the Defined Contribution section of the Plan, then your Flex account is the value of your standard core benefit for Life Assurance and Group Income Protection. If you wish, you can choose to Flex those standard benefits up or down. For example, you can choose a higher pension accrual/ contribution level, or sell some of your holidays. In addition, you can spend more than your Flex Account on buying benefits by giving up part of your. Important: There s a minimum level of Pension accrual, Life Assurance, Group Income Protection (DC Plan only) and Holiday below which you can t Flex. If you spend more than your Flex Account on buying benefits (excluding Charitable Giving), the difference is deducted from your gross pay. If you spend less than your Flex Account, the difference is paid to you as additional that s subject to income tax and National Insurance contributions. Please note: Your Flex Account and the cost of your enrolment elections will be shown as part of your enrolment form on the MyFlex website. Spending more or less than your Flex Account doesn t affect the calculation of your standard -related benefits. For example, your SIP contributions, sick pay, pension and Life Assurance benefits are calculated before any Flex adjustment. If you spend more than your Flex Account: You should ensure that you have sufficient to cover the additional expense, especially if you have other deductions from your such as DC Plan contributions, AVCs or a Student Loan. The Company may require you to change your Flex elections if they cause your pay to fall below the National Minimum Wage. When can I enrol in Phillips 66 Flex? You ll have the following opportunities to make Flex elections: Annual enrolment: Each May/June you can make your benefits choices during the open enrolment window. Your choices will apply from 1 July. New hires: New-hire employees can enrol in Flex when they join the Company. You ll need to enrol by the 30th of the month in which you join. If you join the Company late in the month and are unable to make your choices by that date, MyFlex will re-open until the 30th of the following month. Your benefits choices will apply from the first of the month after you enrol. Mid-year Life Events: If you experience a qualifying Life Event see page 5. 4

7 What is a qualifying Life Event? Qualifying Life Events include: What happens if I don t enrol? If you choose not to enrol in Flex, or don t submit your online MyFlex enrolment by the deadline, your existing benefits will automatically continue (with the exception of Holidays and Cycle2Work). This means that: If you have never enrolled in Flex, your benefits will default to your standard core entitlement package; or If you made elections in the previous Flex year, these benefits choices will remain unchanged, except: Your holidays will revert to the standard core entitlement based on your length of service; and The Cycle2Work benefit will revert to no Benefit. Getting married, entering into a Civil Partnership or gaining a partner or dependant; Getting divorced, dissolving a Civil Partnership, becoming legally separated or ending a long-term relationship; Having or adopting a child or gaining a stepchild; Death of a member of your immediate family (i.e. spouse, partner or dependant child); Starting or returning from maternity/adoption/ paternity leave or shared parental leave; Changing your working hours from full-time to part-time or vice-versa; Starting or returning from a period of unpaid leave lasting one calendar month or more; Starting or returning from an expatriate assignment; Experiencing a significant change in personal circumstances (e.g. an unexpected change in employment of a spouse/partner); Changing childcare circumstances requiring an increase or decrease in your level of Childcare Vouchers, including starting or stopping vouchers mid-year; and Starting, stopping or changing your Charitable Giving amount. If you experience one of these Life Events and would like to review your Flex choices during the year, please send a web ticket to HR Connections or call them on Free Phone Please note that not all Life Events are applicable to all the Flex options and you should consult the detailed overviews relevant to each benefit. Once annual enrolment ends, you won t be able to change your elections until annual enrolment next year unless you have a qualifying Life Event during the current Flex year. 5

8 What happens if I leave Phillips 66 during the year? All your benefits will cease on your last day of employment. However, you will pay a full monthly premium for the month in which you leave, irrespective of your leaving date, which will be deducted from your final pay. The exceptions to this are as follows: If you have chosen to Flex your Pension accrual and you leave before the 25th of the month, your Flex contributions will cease at the end of the previous month. Contributions to the DC Plan will be based on your pensionable that you receive in the month of leaving. If you have selected the Cycle2Work benefit you should read the information provided regarding arrangements for payment of the outstanding lease amount when you leave the Company. Are my benefits subject to tax and/or National Insurance (NI)? To see if your benefits are subject to income tax and/or NI, please refer to the information in the table on page 7. Please note that this is just a summary. You should read the detailed overviews of each benefit, and consult a professional financial advisor for more complete information. If you re on permanent expatriate assignment and have an NT tax coding, the Company will give you relief from TEF/Hypothetical Tax in the same way that income tax relief is given to a UK resident employee. 6

9 BENEFIT INCOME TAX NATIONAL INSURANCE INCOME TAXES AND NATIONAL INSURANCE CONTRIBUTIONS Holidays No No Tax and NI apply if taken as additional cash. If used to purchase other benefits, refer to those benefits for applicable tax implications. Pension DB Plan Pension DC Plan Employee Life Assurance DB Plan Employee Life Assurance DC Plan Spouse/Partner Life Assurance Group Income Protection Private Medical Insurance (PMI) Dental Insurance Childcare Vouchers No No Income tax and NI contributions are not payable on the cost of this Benefit. Tax and NI apply on any additional income received through your monthly payroll if you Flex down to an accrual rate less than the core 1.75% and don t spend the released cash on the purchase of other benefits. No No Your core and optional contributions are on a sacrifice basis and therefore not subject to income tax or NI contributions. No No Income tax and NI contributions are not payable on the cost of this Benefit. Tax and NI apply on any additional income received through your monthly payroll if you flex down to below your core entitlement and don t spend the released cash on the purchase of other benefits. No No Income tax and NI contributions are not payable on the cost of this Benefit. Tax and NI apply on any additional income received through your monthly payroll if you flex down to below your core entitlement and don t spend the released cash on the purchase of other benefits. Yes No Income tax (but not NI contributions) is payable on the cost of this Benefit. The cost of this Benefit will be reported on your P11d for tax purposes. No No Income tax and employee NI contributions are not payable on the cost of this Benefit. Tax and NI apply if you receive payments under the Group Income Protection policy. Yes No Income tax (but not NI contributions) is payable on the amount of the medical insurance premiums (including the Company-provided employee-only cover). The cost of this Benefit will be reported on your P11d for tax purposes. Yes No Income tax (but not NI contributions) is payable on the cost of this Benefit. The cost of this Benefit will be reported on your P11d for tax purposes. No No Income tax and employee NI contributions are not payable on the cost of your tax exempt vouchers. Tax and NI apply to any additional non-tax exempt vouchers you elect. Cycle2Work No No Income tax and employee NI contributions are not payable on the cost of this Benefit. Charitable Giving No Yes Income tax is not payable on the cost of your charity donations, but do incur National Insurance contributions. 7

10 Where do I go for more information? If you have questions after reading this Guide: Visit the MyFlex website via HR Express. The website will show your personalised enrolment information and options as well as general information about your benefits. You can also find detailed information about our Benefits and programmes at UK HR Intranet/ Benefits. Send a web ticket to HR Connections or call them on Free Phone

11 It s easy to ENROL Enrolling for new benefits can be accomplished in three easy steps. Step 1: Before you Enrol... Be prepared. Here are some things to consider as you prepare for Flexible Benefits annual enrolment. 4 Read this Guide and all other enrolment materials carefully. 4 Check out the Flexible Benefits website. 4 Think about your unique situation and what may have changed since last year. For example, did you get married or divorced or do you have a new child? Step 2: Enrol You ve done your homework, now it s time to tailor your benefits to suit your needs. 4 Access the MyFlex system via HR Express and select Choose my benefits. 4 Confirm your dependants details. Take this opportunity to review the information and update if necessary. 4 Review all of your existing benefit choices. 4 Read your 2016/2017 benefit options. Click View on the right side of each benefit, and then My Choice to see your individual options for each benefit. 4 Submit your 2016/2017 benefit elections. Don t forget to read and agree to Terms & Conditions where applicable. 4 Print your enrolment confirmation form and retain this for your records. Step 3: After you Enrol... Your work is almost complete. Before Flexible Benefits annual enrolment comes to a close on 8 June 2016, be sure to conduct the following last steps. 4 Review all dependant adjustments to confirm details are complete. 4 Review new benefit selections to make sure: Dependant cover is accurate; New benefit elections are correct; Additional updates are not necessary; and Relevant application forms have been completed. If you have questions about your benefit elections, the MyFlex System or need additional details about the Flex programme, send a web ticket to HR Connections or call them on Free Phone Important: If you make updates to your dependants, also update those details via HR Express to ensure your HR records are up to date. 9

12 Your 2016/2017 Flexible Benefits ENROLMENT CHOICES This section covers highlights of what you need to know as you choose your 2016/2017 Flexible Benefits. If you want more information on a specific benefit eligibility, coverage details, how it works, etc. you have several resources: The MyFlex website via HR Express. The detailed overviews of each benefit. HR Connections on Free Phone or submit a web ticket. BENEFIT STANDARD ENTITLEMENT MINIMUM LEVEL FLEX OPTIONS YOUR ENROLMENT OPTIONS Phillips 66 UK Pension Plan Defined Benefit Section (DB Plan) members only Pension Employee Life Assurance Canada Life Accrual rate of 1.75% 3x pensionable (2x pensionable for heritage Conoco employees) Accrual rate of 1.25% 1x pensionable Accrual rates of: 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% You can choose: 1x, 2x, 3x, 4x, 5x or 6x pensionable Phillips 66 UK Pension Plan Defined Contribution Section (DC Plan) members only Pension Employee contribution: 5% Company contribution: 10% Employee contribution: 5% Company contribution: 10% Additional employee contributions: 1%, 2% or 3% Additional matched Company contributions: 2%, 4% or 6% You can choose a different accrual rate ranging from 1.25% to 2.50%, in 0.25% increments. The cost of buying or selling a pension accrual is based on your age at the beginning of the Flex year (1 July), your pensionable on 1 May and which section of the DB Plan you are a member of. If you chose to amend the level of cover last year, or are selecting cover for the first time having previously been eligible to participate in Flex, you can increase your cover by one level only (subject to underwriting and the Actively at Work requirement). There is no restriction on flexing down. Some options may be subject to Plan limits. You can choose to contribute an additional 1%, 2% or 3% of pensionable. The Company will contribute an additional 2% for every 1% you contribute. These contributions are payable by sacrifice and matched two-for-one by Phillips 66. Any changes to your contribution rates must be made on Capita s website, phillips66dc. 10

13 BENEFIT STANDARD ENTITLEMENT MINIMUM LEVEL FLEX OPTIONS YOUR ENROLMENT OPTIONS Phillips 66 UK Pension Plan Defined Contribution Section (DC Plan) members only (continued) Employee Life Assurance Canada Life Group Income Protection Canada Life 4x pensionable 66% of pensionable Non-Pension related benefits Holidays Spouse/ Partner Life Assurance Canada Life Depends on employment contract and service to date 2x pensionable 66% of pensionable You can choose: 2x, 3x, 4x, 5x, 6x, 7x, 8x, 9x or 10x pensionable 66% or 75% of pensionable The maximum benefit is 120,000 per annum 20 days Employees can sell down to a minimum of 20 days, no option to purchase None None Cover of: 20,000 40,000 60,000 80, , , ,000 If this is the first time you re eligible to participate in Flex you can choose any level from 2x to 10x pensionable (subject to underwriting and the Actively at Work requirement). If not, you can increase your cover by one level only (subject to underwriting and the Actively at Work requirement). There is no restriction on flexing down. Some options may be subject to Plan limits. You can choose from two options: 66% or 75% of pensionable. If you choose the 75% increased cover level, your cost for the additional cover is based on your age at the beginning of the Flex year (1 July) and on your pensionable on 1 May (or on the date of joining for mid-year new hires). Underwriting is not required for this Benefit. If your contract allows you to Flex your holidays, you can sell some of your holidays. This Benefit does not apply if you re working overseas on a permanent expatriate assignment basis where holiday entitlement is governed by the rules of the Expatriate Policy. Refer to the Holidays Flex Overview if you work part-time. This benefit is available at annual enrolment only. You can choose any level of cover whether this is the first time you re eligible to participate in Flex or have previously selected cover. The cost of this Benefit is based on the level of cover you select and the age of your spouse/partner on 1 July, the beginning of the Flex year. Underwriting is required for this Benefit. 11

14 BENEFIT STANDARD ENTITLEMENT MINIMUM LEVEL FLEX OPTIONS YOUR ENROLMENT OPTIONS Non-Pension related benefits (continued) Private Medical Insurance (PMI) Cigna Dental Insurance National Dental Plan (NDP) Employee only None You can choose to cover your eligible: Spouse/ partner (married/ couple cover) Child/children (one parent family cover) Spouse/ partner and child/ children (family cover) None None A choice of four levels of cover. You can choose to cover: Self only Self & spouse/ partner Self & children Self & family You re automatically enrolled in the Company-provided PMI programme, unless you have previously chosen to opt out. If you re on expatriate assignment you will be automatically enrolled for self-only cover under the Global Medical Plan. Underwriting is not required if you (or your dependants): Enrol in cover upon your first opportunity as a newly eligible employee; or Return from expatriate assignment and were covered by medical insurance while overseas (Cigna Global Health Care). Due to the wide variety of private dentistry charges, be sure to compare the four separate Benefit Schedules with your current dentist s charges to make sure that you choose the most appropriate cover for your needs. Underwriting is not required for this Benefit. Childcare Vouchers Edenred Cycle2Work Halfords None None You can choose up to a maximum of 1,000 vouchers per month (subject to the limit of your Flex Account) None 100 Between 100 and 1,000 in multiples of 10 The Company carries out an earnings assessment at the beginning of the tax year to determine the level of tax-exempt vouchers you re entitled to. Childcare Vouchers are paid into your personalised Childcare Vouchers account each month and can be accessed online or by telephone to request payments to your carer(s). Childcare Vouchers scheme will be closed to new participants once the government s Tax-Free Childcare is introduced. You can lease a bicycle and cycling safety equipment from the Company over a 12-month period. At least 50% of the bike s usage must be for commuting purposes. This Benefit is available at annual enrolment only and is not available to employees on expatriate assignment. 12

15 BENEFIT STANDARD ENTITLEMENT MINIMUM LEVEL FLEX OPTIONS YOUR ENROLMENT OPTIONS Non-Pension related benefits (continued) Charitable Giving Charities Trust None 10 per month Minimum donation 10 per month, no maximum limit You can choose to make pre-tax donations to selected charities via automatic deductions from your pay. You can change your election at any time. The amount you choose to donate will not be included in the calculation of your Flex Adjustment and will be shown separately on your payslip as GAYE, or Give As You Earn. With Flex, both you and Phillips 66 can take advantage of group buying power. The Company is able to obtain better prices and rates than are normally available to individuals buying these benefits. For you, there may also be Income Tax/National Insurance savings on some benefits if you buy through Flex, rather than through your take-home pay. This communication contains information regarding certain Phillips 66 UK benefits. The official plan documents for the various benefits provide more detailed information regarding the plans. Receipt of this communication does not guarantee eligibility for benefits. Phillips 66 reserves the right to amend, change or terminate its plans, any underlying contract or any other policy or program, at any time without notice, at its sole discretion. Anything in this document about legal or tax issues is based on Phillips 66 s understanding of these issues at the date of issue. Any changes in UK laws or HM Revenue and Customs practice may affect this information. 13 4/2016