By Emily Perryman 23 October 2017
The group risk chairman in the spotlight.
The group risk industry has had a tumultuous year with the opportunities created by the government’s Improving Lives green paper subsequently watered down by changes to salary sacrifice. Emily Perryman spoke to Lee Lovett (pictured), chairman of industry body GRiD, to find out about the challenges ahead.
Just under a year ago the group risk industry was given a major boost when a government green paper recognised the important role its products and services can play in tackling employee sickness absence.
But one month later the Chancellor announced that the way salary sacrifice schemes are taxed will change. It means employees who receive benefits like group income protection (GIP) through salary sacrifice will face the same tax bill as those who buy them out of post-tax income.
Lee Lovett, chairman of GRiD, which represents the group risk industry, is still disappointed at the decision. He says the salary sacrifice announcement was completely contradictory to the Improving Lives green paper and is a clear example of government departments not communicating with one another.
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