UNITED KINGDOM Benchmark Analysis BENCHMARK ANALYSIS Benefits Commonly Available Quick Scorecard The United Kingdom benefits structure can be separated into 3 Benefits Offered distinct areas or "pillars" – State, Employer and Personal. The Pension: Y √ UK Social Security system provides retirement pensions and Life: Y √ benefits for widows, sickness, unemployment, pregnancy and Disability: Y √ disability. Medical: Y √ Most individuals will not regard the benefit structure supplied by Y Typical Private Benefits the Government to be sufficient to meet their needs both during N Not Typical and after their working lives. It is, therefore, very common for √ Currently Provided employers to provide a second “pillar” of benefits. Employers X Currently Not Provided generally provide four types of private employee benefits, in the following order of priority: pension, life, disability and medical. ABC vs. Benchmarks Business Travel Accident is typically offered on a local or global Pension: ▼ Life: ▲ basis. Noninsurance benefits among multinational technology Disability: ‘ companies may also include education assistance and stock Medical: ▲ purchase. Overall: ▲ Most benefits supplied by employers to their employees are regarded as benefits in kind, in lieu of pay or as deferred pay. As ▲▲ Significantly Above such, most benefits, other than pension benefits, have tax ▲ Moderately Above consequences for the employee. ‘ Meets Benchmarks ▼ Moderately Below As noted earlier, ABC UK Ltd provides the following benefits to ▼▼ Significantly Below all employees: ‰ Defined contribution (DC) pension (with death benefits) ‰ Individual pension ‰ Life insurance (4 X DIS) ‰ Long term disability ‰ Medical plan (Up to family cover) ‰ Critical Illness / Personal Accident Insurance ‰ Holidays (over and above statutory) ABC UK provides statutory severance pay + 1 week / year based on basic salary (no fixed policy). They are covered by the UK social security retirement system. Overview of Benchmark Analysis In general, employee benefits provision in the United Kingdom varies primarily by level of employee and size of organization, and less so by industry and location. For this reason, our benchmark analysis has compared ABC UK with UK firms of similar size and employee classifications structure. ABC UK Ltd Page C - 5