At a glance: reward and benefits headlines this week 27 January - 2 February 2017
The headlines you might have missed between 27 January - 2 February 2017
Philip Blows: Why staff discount offers are bad for financial resilience
Corporate Adviser: Voluntary benefit discount offers are actually making financial resilience worse, not better says Wealth Wizards account director Philip Blows. Read story
Ian McKenna: pensions’ iTunes moment approaches
Corporate Adviser: The delivery of pension dashboards will be the iTunes moment for financial intermediaries – dashboard strategy should now be firms’ number one priority says F&TRC director Ian McKenna. Read story
DB transfer requests quadruple in two years
Corporate Adviser: Demand for pension transfers out of defined benefit has almost quadrupled over the last two years, with the number of analysis requests to Selectapension exceeding 5,000 in November 2016, compared with just over 1,100 in January 2015. Read story
GIP no longer high-earner only product
Corporate Adviser: Group income protection is extending its reach into lower income groups within the workplace with more than half of workers covered now earning less than £40,000 a year, according to figures from Unum. Read story
Luxfer Group ups DGFs in portfolio restructure
Pensions Expert: Global materials technology company Luxfer Group has restructured the growth portfolio of its defined benefit scheme to invest in diversified growth funds, as research has predicted continued demand for these strategies. Read story
Calls for greater trustee powers as advisers fail to consider scam risks
Pensions Expert: Government and regulators have been urged to strengthen the powers of trustee boards in opposing suspicious transfer requests, as an alert from the Financial Conduct Authority warned that some advisers are not carrying out proper due diligence on receiving scheme investments. Read story
More employers embracing job shares and part-time working
HR Magazine: Timewise's Power Part Time list reveals a record number of senior-level positions are being shared. Read story
TMgroup launches financial wellbeing workshops for staff
Employee Benefits: Property organisation TMgroup has introduced financial wellbeing workshops for its 142 UK-based employees. Read story
47% cite flexible working as the most desirable workplace benefit
Employee Benefits: Almost half (47%) of respondents cite flexible working as the most desirable workplace benefit that they would like to receive, according to research by CV Library. Read story
Reporting guidance reveals how to correctly calculate your gender pay gap
People Management: Acas advice covers which employees should be included – and the reputational dangers of failing to report. Read story
Seasonal and part-time workers could be exempted from auto-enrolment
People Management: Government announces pensions review after pressure from businesses, but experts urge caution. Read story
BHS pensions: Sir Philip Green and TPR on verge of £350m deal
Professional Pensions: A provisional deal between Sir Philip Green and The Pensions Regulator over the BHS pension schemes could be just 'days away', a Sky News report says. Read story
Does auto-enrolment need to be more flexible to be sustained during Brexit?
Professional Pensions: Economic uncertainty is expected to grow while the UK leaves the European Union, which could make it harder to increase auto-enrolment contribution rates. Michael Klimes asks if more flexibility is needed. Read story
CPS: LGPS spends £4.5bn to underperform indices
Corporate Adviser: The Local Government Pension Scheme, which has spent over £4.5bn on reported feed yet underperformed the major UK and global equity and bond indices over the last decade, should be nationalised by Government, the Centre for Policy Studies has found. Read story
58% of baby boomers have never increased their workplace pension contributions
Employee Benefits: More than half (58%) of baby boomer respondents who are in a workplace pension scheme have never increased their workplace pension contributions, according to research by Chase de Vere. Read story
Average advertised salaries fall by 3.9% in London
Employee Benefits: Average advertised salaries in London fell by 3.9% between December 2015 and December 2016 to reach £38,449, according to research by Adzuna. Read story
Government to consult on pension cost disclosure this year
Professional Pensions: Work and pensions minister Damian Green has confirmed the government will consult on hidden costs and charges later this year. Read story
Labour criticises lack of detail in Pension Schemes Bill
Professional Pensions: Shadow work and pensions minister Debbie Abrahams has attacked the government for a lack of detail in the Pension Schemes Bill. Read story
JLT: DB consolidation could cut schemes costs by £500m per annum
Professional Pensions: Consolidation of defined benefit (DB) schemes could cut pension costs by more than £500m a year, a JLT Employee Benefits report says. Read story
Could age discrimination cases spill into the private sector?
Professional Pensions: As public sector pension schemes battle against discrimination claims, James Phillips explores whether private sector schemes should be prepared. Read story
ACA: 12m workers outside AE
Corporate Adviser: Around 12 million private sector workers will be excluded from auto-enrolment next year unless the Government reduces the earnings trigger and extends cover to the self employed, the Association of Consulting Actuaries (ACA) claims. Read story
Pizza Hut CEO: Don't put shareholder value over values
HR Magazine: A focus on profit over people has led to a crisis of trust in businesses. Read story
Richard Harrington: AE review has to consider self-employed
Professional Pensions: The government has to consider how auto-enrolment (AE) can be extended to the self-employed in its forthcoming review says pensions minister Richard Harrington. Read story
National Audit Office concludes probe into government failure to update Police and Firefighters' Pension Scheme commutation factors
Professional Pensions: The National Audit Office has published its report into government failures to provide appropriately valued lump sums for some 34,000 police and firefighters - leaving some members waiting 15 years for their full entitlement. Read story
67% believe benefits would impact their decision to move employer
Employee Benefits: More than two-thirds (67%) of respondents believe that employee benefits would impact their decision to move to a future employer, according to research by Equiniti. Read story
Defined benefit pension funding deficit stands at £470bn
Employee Benefits: The funding deficit for defined benefit (DB) pension schemes was £470 billion at the end of January 2017, according to research by PricewaterhouseCoopers (PWC). Read story
First CCJs for auto-enrolment issued
Corporate Adviser: The first County Court Judgments (CCJs) for non-payment of auto-enrolment penalties have been issued to employers who have missed their staging dates, The Pensions Regulator (TPR) reports. Read story
How could workplace automation impact engagement and reward strategies?
Employee Benefits: There are varying predictions as to the speed and extent to which automation technologies, robotics and artificial intelligence (AI) will affect jobs and the world of work. Read story
Hollis: Bring invisible women into AE system
Pensions Expert: The UK’s pension system is failing “invisible women” who do not meet the auto-enrolment earnings threshold and are punished for leaving work to care for children, Labour peer Patricia Hollis has warned. Read story
Prince Harry takes part in London Ambulance Service’s Time to Talk wellbeing event
Employee Benefits: Prince Harry is visiting the London Ambulance Service today (Thursday 2 February 2017) as part of the health service’s wellbeing event recognising mental health awareness day, Time to Talk. Read story
5% of health insurance claims by construction staff relate to heart conditions
Employee Benefits: Some 5% of health insurance claims among employees in the construction and building sector were related to heart and circulatory diseases, according to construction sector employee benefits firm ECIS. Read story
82% of employers are aware of the Fit for Work service
Employee Benefits: More than eight in 10 (82%) HR professional respondents are aware of the government’s Fit for Work service, compared to 70% ahead of the service’s launch in 2015, according to research by PMI Health Group. Read story
TPR: Employers who avoid AE duties could risk credit rating problems
Professional Pensions: The Pensions Regulator (TPR) has warned companies their credit rating could be affected if they ignore their auto-enrolment (AE) obligations. Read story
John Kay: Transparency will not help improve returns for savers
Professional Pensions: Increased transparency will not deliver better outcomes for savers in pension schemes says economist John Kay. Read story
FTSE 350 DB deficits sit at £108bn after JLT revises tracker
Professional Pensions: The UK's 350 largest companies ended January with an aggregate defined benefit (DB) deficit of £108bn on an IAS 19 basis, according to JLT Employee Benefits. Read story
Brexit cannot derail auto-enrolment, industry says
Professional Pensions: Brexit will not have a material impact on auto-enrolment (AE) contribution rates and should not be used as an excuse to meddle with the regime, the industry has said. Read story
Workplace racism increasingly being ‘normalised’, analysis suggests
People Management: Review of 25,000 cases of racism at work highlights complicit managers, poor D&I training and workers’ inability to speak out. Read story