The Horwath ethic of 'value added service delivery' is the cornerstone of our Employee Benefits business.  Before Employee Benefits commenced business in an already highly competitive market, the business posed the question, “What do clients want that they’re not getting from their current offerings" and “can we offer something better using our collaborative business model?” Having ‘value added service delivery’ as a cornerstone ethic in our business, we discovered new ways to meet unsatisfied needs.

Employee Benefits evaluates existing retirement funds and assists with the formation of new retirement funds. We focus on administrative costs and services, implementation of appropriate investment strategies and the benefit structure of the retirement fund. Clearly defining the roles and responsibilities, transparency of costs and access to information are all part of our beliefs.

We understand that you only retire once so we have to get it right.

The problem currently is…

The majority of retirement funds are offered by a single organisation. This means that the administration, consulting, investment products and risk underwriting roles are all provided by the same organisation. The problem with the one-stop shop model?

• The client is expected to fit in with the product provider
• Cross subsidisation of costs – no transparency so client doesn’t know how specific costs are allocated
• No clarity on roles, responsibility and accountability
• Client is tied into the whole package
• Very little flexibility
• Remuneration is often in the form of commission which does not create an environment where the adviser has to “work for the money”
• The one stop service provider becomes the judge, jury and executioner

Introducing the Employee benefits difference?

• Begin with the client’s needs and design a fund to meet those needs
• Employ the appropriate independent specialist service providers for each required role
• Define the role players and ensure that there are no conflicts of interest
• Ensure access to information
• Ensure that all processes and fee transactions are clear and transparent
• Employee Benefits derives income in the form of fees which are measurable and agreed upfront
• Smaller clients are catered for through participation in our Pinnacle Umbrella Pension and Provident Funds

Simply put, the Horwath Employee Benefits model provides greater transparency, flexibility and efficiency resulting in the fund member having the confidence of a secure retirement.

 

• Service level agreements are entered into with each fund
• Fees are transparent and agreed up front
• Administration is internet based, ensuring low cost and optimal efficiency
• Fund details can be accessed online by all participants, including members

Our role is to fulfill the advisory or coaching role to the retirement fund. We aim to work closely with the management committee and strive to meet the needs of the fund members and ensure that the management committee meet their fiduciary obligations through the following:

• Understand the client’s specific requirements and assist them in creating a fund structure that will best deliver those needs
• Ensure that the funds comply with appropriate compliance requirements
• Focus on the tax implications
• Maximise benefits and access to service but contain costs
• Strong focus on the training and development needs of the management committee members
• Enter into Service Level Agreements with each fund thus allowing our clients to measure our commitment and performance

• Horwath Employee Benefits has access to all the underwriters and as such is able to provide clients with the policy best suited to them. A full range of death, disability and other risk benefit products are on hand
• Horwath Employee Benefits constantly reviews the pricing and policy conditions of our various clients