Also in this issue:

Hot offers
Time for a workplace seminar?
SG and a heads up for older staff
SG and contractors - getting it right
Market update

Product and service

Your sick leave cost could be a real surprise

Discovering that 20% of your company's payroll cost* is going on sick leave absences wouldn't make your day, but it would give you the opportunity to do something about it. You can get started now by taking part in the Australian Sick Leave Index (ASLI).

A first-to-market initiative, Aon's ASLI gives participating clients a range of metrics around sick leave absences, comparing their individual company performance with that of a consolidated group of companies.

If you want to take part, we'll ask you to provide a small series of employee and sick leave-related figures for your company, as well as total payroll dollars. This information is usually available on payroll and/or HR systems.

In return, we'll give you a report (at no cost to you) comparing your company's performance with a national performance benchmark based on the amalgamated scores of other companies taking part in the survey. The report will show the impact that sick leave has on your business in terms of direct wage costs and lost productivity.

Your report may show that your sick leave cost is reasonable so you can relax knowing that all's well. If your results aren't as good as they could or should be, we can work with you to identify the causes and develop appropriate cost-management strategies.

To register for our next ASLI survey later this year, email Ros Burke from Aon Consulting's Workforce Risk Solutions or call her on 02 9253 7560.

*Actual result from a recent client survey.

Policy committee: your meeting place

Made up of equal employer and member representation, a policy committee is a main point of contact, offering members and employer-sponsors the opportunity to ask questions about the plan's investments, operation and performance, and to express any concerns about the operation of the plan.

Why have a policy committee?

• Helps the trustee and employer understand and respond to employees' changing needs
• Share feedback, concerns, suggestions
• Balanced participation reflects balance of employer and employee needs
• Transparency of plan management
• Keep up to date on Aon Master Trust features and services

What do the policy committee representatives do?

Policy committee members cannot make decisions that affect the plan - this is the responsibility of the trustee. The trustee does encourage the policy committee to make suggestions and raise concerns they may have about general operation, investment strategy and performance, and communication material.

Similarly, the trustee can ask the policy committee to assist in obtaining the views of members and the employer, and help with enquiries and complaints.

Our Policy committee guidelines explain how it works, how to set up a committee, and how to get representatives on board.

Time for a workplace seminar?

With members receiving their annual benefit statements this month, they may be asking themselves, "Am I making the most of my contributions?", "Is my investment mix right for me?", "Do I have the right insurance cover?", or "Should I do something about my other super?" (see Member Directions).

Now might be a good time for a free workplace seminar on super, investments, insurance, or retirement strategies, and 'consolidation days' to help members who want to bring their super together.

For personal advice on super, investment, insurance or other financial decisions, talking to an expert is the way to go and we can put members in touch with an adviser if they don't already have one.

Ask your account manager or adviser about the different ways we can help.

Hot offers Members of the Aon Master Trust can grab some great discounts through our extra benefits program, my ebenefits. Roses Only: 10% discount Home and/or contents insurance: 3 months free Health cover: 1 month free See Member Directions for more information on these offers.

United in 2010

Aon is now the principal shirt sponsor of Manchester United - the world's #1 sports brand. This is a four-year global partnership and brand sponsorship agreement, with the Aon logo appearing on the shirts from the 2010/11 season.

Football is dynamic and competitive. It transcends cultures and people - bringing communities together like no other sport. Like Aon, Manchester United has a truly global reach. The club has a great pedigree, and shares both our ambition for worldwide appeal and our pursuit of excellence. For Aon to become part of this high energy environment is extremely exciting.

The Manchester United shirt is an iconic image in the world of sport, and the chance to appear on it is very rare - Aon is only the fourth company to do so in the history of the club.

Learn about the partnership.

Investments

Market update: quarter ended 30 June 2010

Welcome relief in 2009/10 but the GFC recovery still has a way to go

Positive investment returns for 2009/10 were a welcome relief after two years of losses for growth-oriented strategies. However, unwelcome volatility during the June quarter reminded investors that the process of recovering from the global financial crisis is far from over. The vigorous public debate being waged in the US as to priorities - reduce deficit spending or maintain programmes that support the economy - is critical in shaping the global economy. Too much austerity too soon could choke off the emerging recovery in developed economies. Rising and unsustainable debt (many countries are facing massive debt challenges) could lead to defaults on payments or inflation. At the same time, growth rates in emerging economies such as China are slowing. Investment markets may be jittery for a few years to come as governments try to find the appropriate balance between managing the economy and managing the budget.

For a full report, including market sector updates, see our Market update quarter ended 30 June 2010.

Source: Russell Investments

Legislative and other news

SG and a heads up for older staff

With SG payments not permitted for employees age 70 or over (unless required by an award agreement), you might want to give a 'heads up' to any staff who might be approaching their 70th birthday. This will give them an opportunity to consider starting or increasing their personal or salary sacrifice contributions. They'll need to satisfy a work test if they want to make their own contributions (see the Product Disclosure Statement for more information). If they'd like some retirement planning advice, let us know. If they don't have an adviser already, we can put them in touch with one.

SG and contractors - getting it right

This article in a recent edition of the ATO's Workplace education news may help you avoid some common contractor/super guarantee mistakes, such as not paying enough, missing deadlines and incorrectly classifying employees as contractors. The article focuses on helping employers in the transport, road freight and automobile industry so, if that's you, you may want to take a look.