| 11 Nov 2008 |
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Friends Provident International (FPI) launches its new Group Savings scheme, Optus
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Carefully planned gratuity provisions aid balance sheets and increase employee loyalty particularly in an uncertain economy says FPI
Friends Provident International (FPI), the dynamic protection, pensions and investment provider, has advised UAE companies of the necessity of carefully planned gratuity provisions for employees at the launch of its group savings scheme Optus, particularly during this time of economic uncertainty.
FPI advises that with the current economic climate, companies should consider how best to manage and protect gratuity sums during this time and the Optus group savings scheme will not only help with corporate balance sheets, but can also increase employee loyalty.
"A significant issue for many companies in the UAE right now is protecting gratuity payments during an economic crisis and the attraction and retention of staff and finding ways to build loyalty that do not unduly impact on staff cost or bottom lines," said Matt Waterfield, General Manager (Middle East) for Friends Provident International.
"This is the time when companies need to think about protecting their investments and ensuring that their resources are not vulnerable to external factors. One aspect of staff remuneration that can be enhanced without increasing costs is the provision for gratuity and that is what Optus is all about. It allows companies to plan for staff gratuities in a scheme that adds value for both the company and the individual."
FPI has adapted the UAE Optus scheme from its highly successful UK product where it is a leading corporate group saving scheme. The scheme is designed to allow companies to make provisions for employee gratuity liability with the option of providing additional occupational benefits for employees.
"Optus works on an entirely bespoke and secure IT platform allowing employers to plan for their future gratuity exposure and contribute monthly payments with the potential for return on investment to cover the final gratuity payment when the employee leaves the company," added Waterfield. "Employees also have the option to add to the contribution made by employers."
Waterfield added that it is important that all companies in the UAE understand the legal obligations related to employee gratuity. It is a compulsory provision that results in the individual receiving a lump sum at cessation of employment at any age. With few exceptions, an employee who has completed one or more year's continuous employment is entitled to a gratuity based on 21 days pay for each of the first five years, and 30 days pay for each subsequent year, with the total gratuity capped at the equivalent of two years pay - this gratuity can only be calculated on the salary at the date of leaving employment.
"FPI has found that few employers realise the extent of the potential exposure gratuity provisions place on their balance sheets and often fail to plan, leaving their company open to financial risk if a number of employees choose to leave employment within a similar timeframe or a long-term employee leaves," said Waterfield.
"Optus allows employers to manage gratuity exposure and puts them in control of their own scheme, therefore reducing the liability they currently face through salary inflation and the increasing need to raise salaries to attract new talent."
Optus can also aid employers to recruit and retain top talent in the region through the greater ancillary benefits the group savings plan offers, with the option of opening the scheme up to allow employees to contribute further funds to their individual savings account and provide for their own futures.
Optus can be denominated in UAE dirhams, US dollars, euro and sterling and boasts a range of more than 120 funds - including several Shariah compliant funds. The fund range has been developed to complement any investment philosophy and each fund is expertly managed by leading asset managers. In addition, a three, five or ten year Lifestyle Investment Option can be included in the plan. This is designed to progressively move units to less volatile funds as scheme members approach their maturity age, in order to help protect their savings.
For further information advisers should contact their FPI regional sales manager or visit www.fpinternational.com.
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About Friends Provident International:
Friends Provident International (FPI) is the international component of Friends Provident's business, which operates throughout the UK, Europe, Asia, and the Middle East.
See www.fpinternational.com for further information on Friends Provident International.
IMPORTANT INFORMATIONFriends Provident International is a trading name of Friends Provident Life and Pensions Limited and Friends Provident Life Assurance Limited for business conducted outside the United Kingdom.
Registered & Head Office: Pixham End, Dorking, Surrey RH4 1QA England
Incorporated companies limited by shares and registered in England.
Friends Provident Life and Pensions Limited. Registered number 4096141
Friends Provident Life Assurance Limited. Registered number 782698
Authorised and regulated in the United Kingdom by the Financial Services Authority.
Friends Provident International is a trading name of Friends Provident International Limited. Authorised by the Isle of Man Insurance and Pensions Authority and regulated by the Financial Services Authority for the conduct of investment business in the UK. Provider of life assurance and investment products.
Incorporated company limited by shares. Registered in the Isle of Man No. 11494 All are members of the Association of International Life Offices.
The rules and regulations made by the Financial Services Authority for the protection of investors will not normally apply to persons resident outside the United Kingdom.
Policyholders will receive the protection of the life assurance (Compensation of Policyholders) Regulations 1991 of the Isle of Man.
Full terms and conditions can be obtained by contacting Friends Provident International using the details above or by visiting our web site www.fpinternational.com.
The information in this document is based on our understanding of UK, Guernsey and Isle of Man Law and practice as at January 2008. Please note that tax legislation may change in the future.
Not authorised for distribution to the public in Hong Kong .
Copyright© 2008 Friends Provident International. All rights reserved.
For further information in Middle East, please contact:
Tessa Richardson or Tamara Essayyad
Hill & Knowlton
Tel: 04 33 44 930
Email: Tessa.Richardson@hillandknowlton.com
For further information in the UK, please contact
Sonya Griffiths
Friends Provident International
+44 (0)1392 844171
Lorna Wiltshire
Friends Provident
+44 (0)1306 871836
Friends Provident International
United Kingdom House, Castle Street, Salisbury,
United Kingdom, SP1 3SH
Telephone: +44 (0)1722 311 611
Facsimile: +44 (0)1722 332 005
Friends Provident International Limited
Royal Court, Castletown, Isle of Man, British Isles, IM9 1RA
Telephone: +44 (0)1624 821 212
Facsimile: +44 (0)1624 824 405
Salisbury Office:
United Kingdom House,
Castle Street, Salisbury,
Wiltshire, SP1 3SH,
England
Telephone: +44 (0)1722 311 611
Facsimile: +44 (0)1722 332 005
Guernsey Office:
Albert House, South Esplanade, St Peter Port,
Guernsey GY1 1AW,
Channel Islands
Telephone: +44 (0)1481 700 210
Facsimile: +44 (0)1481 712 069
Registered & Head Office:
Royal Court, Castletown, Isle of Man,
British Isles, IM9 1RA.
Telephone: +44 (0)1624 821 212
Facsimile: +44 (0)1624 824 405
Hong Kong Office:
Suites 1203-1211,Two Pacific Place, 88
Queensway,
Hong Kong
Telephone: +852 2524 2027
Facsimile: +852 2868 4983
United Arab Emirates Office:
PO Box 215113,
Dubai,
United Arab Emirates
Telephone: + 9714 299 5910
Facsimile: + 9714 299 5930
Singapore Office:
63 Market Street, #06-05,
Singapore 048942
Telephone: +65 6327 4019
Facsimile: +65 6327 4020
© Press Release 2008
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