At a glance: reward and benefits headlines this week 9-15 December 2016
The headlines you might have missed between 9-15 December 2016
Public Health England chief: How the GIP sector can get its voice heard
Corporate Adviser: The group income protection sector needs to do more to share its evidence base with government and the wider workplace health community if its views are to be given weight in formulating policy, says Public Health England’s health and wellbeing chief. Read story
Poll shows adviser fears over IPT and sal sac
Corporate Adviser: The Chancellor’s increase in income premium tax will prompt a reduction in use of group PMI and could lead to a boost to corporate paid cash plans, according to delegates at the Corporate Adviser Healthcare and Group Risk Forum on Tuesday. Read story
UK’s gap between public and private sector pensions is world’s biggest
People Management: Experts decry ‘substantial discrepancy’ caused by closures of final salary schemes. Read story
BA case: Trustees were 'reasonable' to include recovery payments in increase framework
Professional Pensions: The Airways Pension Scheme (APS) trustees were "entirely reasonable" when including £55m annual recovery payments and a £250m contingent payment in their discretionary increase framework, their lawyer has said. Read story
Barclays, DS Smith and Rio Tinto recognised for employee share plans
Employee Benefits: Barclays, DS Smith and Rio Tinto are among the organisations that were recognised for their employee share plans at the 2016 Annual Proshare Awards. Read story
35% believe Brexit will impact pensions
Employee Benefits: More than a third (35%) of employer respondents believe that Brexit will impact pensions, according to research by Employee Benefits and Close Brothers. Read story
Portland City Council to tax organisations that pay CEO 100 times more than staff
Employee Benefits: Portland City Council, Oregon, US, is to impose a surtax on publicly-traded organisations that pay chief executive officers (CEOs) 100 times more than the median employee. Read story
Rename GIP – and other ways to improve take-up of group risk
Corporate Adviser: Income protection is a misnomer and the product should be rebranded to reflect the broader range of services it offers, say experts at the Corporate Adviser Healthcare and Group Risk Summit. Read story
IBM revises cash commutation factors
Pensions Expert: The IBM Pension Trust has updated its cash commutation factors, offering transferring members across its schemes higher lump sums when exchanging part of their defined benefit entitlements. Read story
Govt to freeze auto-enrolment earnings trigger
Money Marketing: The government is set to freeze the auto-enrolment earnings trigger at £10,000 next year as it confirms a review of the flagship pensions policy will include how to bring more self-employed people into retirement saving. Read story
Banned pension trustee has appeal denied at Tribunal
Money Marketing: A former pension scheme trustee who tried to appeal a ban from The Pensions Regulator nearly five years after he was struck off has had his case thrown out by the Upper Tribunal. Read story
Tribunal win for beauty therapist unable to arrange weekend childcare
People Management: Emma Holt awarded £18,000 in unfair dismissal case following changes to flexible working arrangements. Read story
Amazon penalises staff for taking sick days, investigation finds
People Management: Sunday Times also reports employees must work extra ‘compulsory’ hours; legal experts say absence policies are becoming stricter but more compassion is needed. Read story
One in five workers ‘forced to use holidays’ to attend funerals
Business Matters: Nearly one in five employees have been forced to use their annual leave entitlement or take unpaid leave to attend funerals of family members or friends, according to new research. Read story
US accounting firm to introduce paid parental leave
Employee Benefits: US accounting and tax organisation Marks Paneth is to introduce a new paid parental leave policy for its 600 employees, providing staff with up to six weeks of fully-paid parental leave. Read story
Confusion over excepted life and GIP tax status
Corporate Adviser: The position of excepted group life policies (EGLP) and group income protection schemes have been thrown into question by a lack of clarity in the Finance Bill released last week. Read story
Govt launches AE review
Corporate Adviser: The level of the charge cap and the challenge of engaging multiple jobholders and the self-employed with pension saving will form part of a Government review of automatic enrolment review unveiled today. Read story
FCA and DWP hit out at ‘poor value workplace schemes’ and IGCs
Corporate Adviser: More than 330,000 members of workplace pension schemes are still suffering AMCs in excess of 1 per cent despite the FCA and DWP’s efforts to pressurise providers to reduce their costs following the 2013 Office of Fair Trading market study. Read story
Govt eyes action against providers making slow progress on reducing costs and charge
Money Marketing: The FCA and Department for Work and Pensions will soon be contacting pension providers who have failed to make sufficient progress on reducing high costs and charges. Read story
Is partial annuitisation the best way to protect retirees?
Professional Pensions: The OECD believes annuities are part of the solution to prevent people running out of money in retirement. Michael Klimes asks how viable this is in the era of Freedom and Choice. Read story
Government sets out scope for 2017 AE review
Professional Pensions: The government has confirmed its much anticipated review into auto-enrolment (AE) will take place in 2017, and has revealed what it will cover. Read story
American Express to enhance parental leave and family-friendly benefits for US staff
Employee Benefits: American Express is to extend its paid parental leave policy and enhance its family-friendly benefits programme for US employees. Read story
68% offer at-retirement support to help staff make informed decisions
Employee Benefits: More than two-thirds (68%) of employer respondents that offer at-retirement support to staff do so because they want to support staff in making informed decisions, according to research by Employee Benefits and Close Brothers. Read story
Harrington hails 'great strides' as AE hits seven million mark
Professional Pensions: Auto-enrolment (AE) has reached seven million people since it first launched four years, according to The Pension Regulator's (TPR) latest figures. Read story
Harrington: Employers should be a conduit for pensions but individuals should take responsibility
Professional Pensions: While employers continue to be a "conduit" for pension savings, more emphasis must be placed on promoting individual responsibility according to the pensions minister. Read story
One fifth of employers will cut staff pensions to fund auto-enrolment, DWP finds
People Management: Employees will have to choose between ‘limping through retirement on less than they had hoped for, or working longer’, says expert. Read story
Pay victory for care workers ‘denied the minimum wage’
People Management: Thousands reimbursed after major investigation by HMRC; average worker misses out on £815 per year, says think tank. Read story
Wincanton drivers for Argos to strike over holiday back pay
Employee Benefits: Members of trade union Unite who work for logistics and supply organisation Wincanton and are based at Argos’ national distribution centre are to undertake strike action in a dispute over holiday back pay. Read story
Nissan agrees two-year pay deal and maternity leave increase
Employee Benefits: Nissan has agreed a two-year pay deal for 7,400 of its employees, which includes an increase in pay and paid maternity leave. Read story
Wasabi launches employee engagement programme
Employee Benefits: Sushi and bento restaurant chain Wasabi has introduced an employee engagement programme for its UK staff, including a recognition scheme and access to a range of voluntary benefits. Read story
31% of employers are aware of the new tax-free childcare scheme
Employee Benefits: Less than a third (31%) of employer respondents are aware of the new tax-free childcare scheme due to come into effect from early 2017, according to research by the Chartered Institute for Personnel and Development (CIPD). Read story
What key development would you like to see happen in workplace pensions during 2017?
Professional Pensions: Industry spokespeople tell Helen Morrissey what developments they would like to see in the pension market in 2017. Read story
Pension providers making 'significant progress' in reducing charges - FCA
Professional Pensions: Pension providers have made "significant progress" in reducing costs and charges following earlier recommendations by the Independent Project Board (IPB) that they do so, the regulator has found. Read story
Mercer buys Thomsons Online Benefits
Corporate Adviser: Mercer is buying Thomsons Online Benefits, the benefits, software and communications business to enable it to offer its Darwin platform proposition to its clients. Read story
Innovation gone wrong: The fightback begins on Govt pension policy
Money Marketing: The Government is facing calls from the advice profession to rethink where it is heading with pension policy as the lifetime allowance and Lifetime Isa come under renewed attack. Read story
2017 AE review will ignore adequacy but include charge cap
Pensions Expert: The Department for Work and Pensions has announced the scope of its 2017 review of auto-enrolment, including a reconsideration of the charge cap on defined contribution default funds. Read story
Only 5 per cent of new fathers opt for shared parental leave
People Management: Four-fifths of employers have received no SPL requests, according to new CIPD data. Read story
The Top 100 Pension Schemes 2016
Professional Pensions: Professional Pensions has teamed up with Pension Funds Online to bring you the list of the biggest pension schemes in the country along with the details of their advisers, providers and asset managers. Read story
Three in ten will not seek advice about DB transfers
Professional Pensions: Nearly half (45%) of defined benefit (DB) members approaching retirement do not feel informed enough to decide whether to transfer their pension, a survey has revealed. Read story
Growing cost of absenteeism concerning employers
Reward Guide: Threat of long-term absence worrying businesses as they head into 2017, finds Kimberley Dondo. Read story
45% see the reduced annual and lifetime allowance limits impact 1-5% of staff
Employee Benefits: April 2016’s reductions to the annual and lifetime pensions allowances impacted between 1% and 5% of staff in just under half (45%) of employer respondents’ organisations, according to research by Employee Benefits and Close Brothers. Read story
24% check the pension contributions on offer before accepting a new job
Employee Benefits: Less than a quarter (24%) of respondents check what pension contributions are on offer by a prospective employer before accepting a new job, according to research by Fidelity International. Read story
Total pay increases by 2.5%
Employee Benefits: Total pay in Great Britain, including bonuses, increased by 2.5% between August-October 2015 and August-October 2016, according to the Office for National Statistics (ONS). Read story
Slaughter and May revamps pay and benefits package
Employee Benefits: Law firm Slaughter and May is revamping its pay and benefits package for its 1,139 employees, including a pay increase for associates, the introduction of paid sabbaticals, an on-site doctor, and the opportunity to work from home one day a week. Read story
Jewellery store boss surprises staff with Boxing Day holiday gift
Employee Benefits: Peter Wong, managing director at Wongs Jewellers, has shown support for his employees’ wellbeing by giving all staff Boxing Day off work. Read story