At a glance: reward and benefits headlines this week 24 February - 2 March 2017
The headlines you might have missed between 24 February - 2 March.
Aon, Mercer and Willis Towers Watson join forces to fend off CMA investigation
Corporate Adviser: Aon Hewitt, Mercer and Willis Towers Watson have submitted a joint response to the FCA’s Asset Management Market Study Interim Report, proposing a number of measures to improve competition and transparency in the investment consultancy and fiduciary management sectors – but are refusing to say what their proposals are. Read story
Job loyalty costing Millennials a 15% pay rise
HR Magazine: Resolution Foundation research undermines assumptions that Millennials job hop more than older workers. Read story
NEST shifts 20% of developed equities into UBS climate aware fund
Professional Pensions: The National Employment Savings Trust (NEST) has partnered with UBS to reduce its default fund's exposure to climate change risk, while attempting to influence corporate change. Read story
BA pension deficit nearly doubles in six months
Professional Pensions: The aggregate deficit of British Airways' (BA) pension schemes has climbed 94% since the end of June, despite one scheme increasing its surplus. Read story
Employees did £33.6bn worth of free work in 2016, says TUC
People Management: More than five million employees did unpaid overtime last year; teaching and educational professionals clocked up the most hours. Read story
Big employers exceeding AE obligations
Corporate Adviser: Almost half of FTSE 100 companies enrol more staff into DC pensions than they are legally required to, with 46 per cent going beyond auto-enrolment rules, while more than nine out of 10 use a definition of pensionable pay that is typically better than “qualifying earnings”, research from Willis Towers Watson has found. Read story
Massive difference in at-retirement projection rates
Corporate Adviser: At-retirement growth rate projections used by insurers and Sipp providers vary widely, with some projecting 5 per cent returns on cash and others using 9 per cent projections for overseas equities, a report has found. Read story
More to be done on flexible working, says Working Families
HR Magazine: A third of adults do not think it has become easier to combine work and life, Working Families research reveals. Read story
HSBC chief: Trustees should get on board and support the dashboard
Professional Pensions: Expectations of what the dashboard could offer scheme members have been evolving. HSBC pension scheme's Elizabeth Renshaw-Ames tells Michael Klimes what it has to offer. Read story
Pension Schemes Bill must be 'clearer' on master trust wind-ups
Professional Pensions: The government should clarify how failing master trusts can be wound up and taken over to ensure members are not left in limbo, according to Adrian Boulding. Read story
DC funds twice as likely to use master trusts than in 2015
Professional Pensions: Master trusts are increasingly becoming the defined contribution (DC) vehicle of choice for FTSE 350 companies as they ditch trust-based schemes. Read story
48% do not know that tips cannot be used to top up pay to the minimum wage
Employee Benefits: Almost half (48%) of respondents who earn less than £15,000 a year do not know that tips cannot be used to top up wages to the minimum wage, according to research by the Department for Business, Energy and Industrial Strategy (BEIS). Read story
98% of FTSE 350 organisations offer defined contribution pension schemes to new staff
Employee Benefits: The majority (98%) of FTSE 350 organisations offer a defined contribution (DC) pension scheme to new employees, according to research by Willis Towers Watson. Read story
Re-enrolment could be an opportunity to improve scheme governance
Reward Guide: Rather than being another box ticking exercise on their pensions to-do list, employers could use re-enrolment to review scheme governance, says Jenna Gadhavi. Read story
TPR reaches deal with Sir Philip Green over BHS pensions worth £363m
Professional Pensions: The Pensions Regulator (TPR) has reached a deal with Sir Philip Green over the British Homes Stores (BHS) pension schemes. Read story
Hoover 'in talks with TPR' over RAA to avoid collapse
Professional Pensions: Hoover has revealed it is pushing for a deal to send its defined benefit (DB) scheme into the Pension Protection Fund (PPF) in order to avoid collapse. Read story
Half of older employees plan to work past 65, says CIPD survey
People Management: Organisations ‘shockingly’ underprepared to support an ageing workforce, but abolition of retirement age is welcomed. Read story
Should transaction costs be brought within the DC charge cap?
Professional Pensions: The AE review is considering bringing transaction costs into the DC charge cap, but such a move could lead to perverse behaviour that is not in members' best interests. Stephanie Baxter explores the arguments. Read story
Cancer Research completes £250m buy-in with Canada Life
Professional Pensions: The trustees of the Cancer Research UK Pension Scheme have signed a £250m pensioner buy-in with Canada Life, bringing the insurer into the mid-range de-risking market. Read story
Analysis: Workplace health
Health Insurance Daily: Can light really have an impact on employee wellbeing? Read story
KFC, Pizza Hut, Taco Bell and Yum! Brands enhance parental leave for US staff
Employee Benefits: Fast food restaurant organisation Yum! Brands, which includes KFC, Pizza Hut and Taco Bell, has expanded its paid parental leave policy for US-based staff. Read story
56% collect data on average pay by ethnicity
Employee Benefits: Just over half (56%) of employer respondents collect data on average pay by ethnicity, according to research conducted as part of an independent review led by Baroness McGregor-Smith. Read story
British workers unaware of state pension age increases
HR Magazine: Large groups of varying ages didn't know about the rises to state pension age between 2018 and 2028. Read story
Amanda Latham: High standards of governance bring value for pension scheme members
Employee Benefits: Good governance means making strategic and timely decisions in pursuing the scheme’s objectives and achieving good outcomes for members. And it means effective structures and processes that enable trustees to have appropriate oversight of the scheme. Read story
Lorraine Heard: Time for the public sector to mind the gender pay gap
Employee Benefits: From next April, all employers with 250 or more employees will have to collect and publish gender pay gap data annually. Read story
85% offer a flexible benefits platform to increase employee engagement
Employee Benefits: More than three quarters (85%) of employer respondents offer an online flexible benefits platform to increase employee engagement, according to research by Aon Employee Benefits. Read story
37% believe they will have to work past accepted retirement age
Employee Benefits: More than a third (37%) of respondents believe they will have to work past the accepted retirement age of 65, according to research by the Chartered Institute of Personnel and Development (CIPD). Read story
BHS settlement met with relief by industry; Proves TPR has 'enough powers’
Professional Pensions: Much of the industry has praised the regulator for striking a deal with Sir Philip Green over the BHS schemes and expressed a degree of relief. Read story
Deficits stabilise after turbulent 2016 but still at challenging levels
Professional Pensions: Private sector pension deficits have stabilised as markets show resilience, but are still more than double what they were 12 months ago. Read story
New standalone BHS scheme could be first under overhauled levy rule
Professional Pensions: A scheme to allow British Home Stores (BHS) members to avoid large cuts through the Pension Protection Fund (PPF) could be the first to be assessed under new levy calculations. Read story
ITV's pension deficit almost doubles over 2016
Professional Pensions: The aggregate deficit of ITV's defined benefit (DB) schemes grew by 86% last year, according to the broadcaster's preliminary results. Read story
Nest blocked from competing in decumulation market
Corporate Adviser: Transfers into Nest will be remain subject to a 0.3 per cent charge and the provider will be blocked from competing in the decumulation space, it has been confirmed. Read story
Wild Card Brewery sees the value in going beyond the minimum
Employee Benefits: Walthamstow-based micro-brewery and bar Wild Card Brewery decided to pay its staff the London living wage, as determined by the Living Wage Foundation, when the business was first set up in 2012. Read story
BHS deal welcomed but views split over DB framework
Pensions Expert: Sir Philip Green will contribute £363m to a new pension scheme for former employees of BHS, under a settlement arrangement that achieves better outcomes for members than entry into the Pension Protection Fund. Read story
Low-paid parents earn £1.96 an hour after childcare costs
HR Magazine: Low-paid full-time workers can spend up to 45% of their disposable income on childcare. Read story
Wellbeing programmes not aligned with employee needs
HR Magazine: Connecting benefits programmes with wider strategies around wellness can be key to promoting engagement. Read story
Brexit means holiday pay ruling ‘may never become law’
People Management: British Gas loses right to appeal in long-running commission payments case. Read story
DWP refrains from 'unleashing monster' NEST into drawdown market
Professional Pensions: The National Employment Savings Trust (NEST) will not expand its decumulation offering to enter the drawdown market, the Department for Work and Pensions (DWP) has confirmed. Read story
Rio Tinto uses country champions to drive engagement with share scheme
Employee Benefits: Mining organisation Rio Tinto uses country champions to help drive engagement with its employee share scheme. Read story
NHS England develops national health and wellbeing agenda for 1.3m staff
Employee Benefits: NHS England has developed a nationwide health and wellbeing agenda, implementing staff policies and local partnerships to improve the health of its workforce. Read story
DHL and Orange are among Global Top Employers for 2017
Employee Benefits: DHL, Orange, Philip Morris International and Saint Gobain are among the ten organisations that have been accredited as Global Top Employers for 2017 by the Top Employers Institute. Read story
Big Bang Theory actors offer to take pay cut to boost female co-stars’ wages
Employee Benefits: Leading comedy actors from the hit TV show The Big Bang Theory reportedly agree to take a $100,000 (£81,480) pay cut to boost the wages of two of their female co-stars. Read story
Maximise employee generated content to enhance engagement
Employee Benefits: Organisations should acknowledge and maximise employee generated content to enhance employee engagement. Read story
Generation Y leaders need a compelling employee value proposition in today’s workplace
Employee Benefits: Future workplaces will be vastly different to today as generation Y employees require innovative ways of working, according to Adam Kingl (pictured), executive director of thought leadership at the London Business School. Read story