At a glance: reward and benefits headlines this week 11-17 September 2020
The headlines you might have missed between 11-17 September 2020.
Mps tell Sunak to ‘consider targeted extensions’ of furlough system
HR Review: A cross-party group of MPs believes Rishi Sunak, Chancellor of the Exchequer “should carefully consider targeted extensions” of the furlough system to assist certain industries in financial trouble. Read story
Sub-£100m DC schemes forced to consolidate if fail value test
Corporate Adviser: Trustees of sub-£100m single-employer defined contribution (DC) schemes will be forced to consolidate if they are assessed as not giving good value to members, under draft rules proposed by the Department for Work and Pensions today. Read story
DWP launches consultation to improve DC outcomes
Professional Pensions: The Department for Work and Pensions (DWP) has launched a consultation to improve saver outcomes and promote investment in green technology and infrastructure. Read story
Railways Pension Scheme issues warning over revised TPR funding code
Professional Pensions: The Railways Pension Scheme has warned The Pensions Regulator (TPR) that its proposals to revise the defined benefit (DB) funding code could lead to a £15bn deficit in the scheme as it is forced to switch lower-risk but lower-returning assets, the FT says. Read story
Government urged to rethink 'pot follows member' idea to fix burgeoning number of lost pensions
Professional Pensions: Lane Clark and Peacock (LCP) has urged the government to “look again” at the idea of ‘pot follows member’ to fix the burgeoning number of small pension pots getting lost. Read story
Salesforce, Cisco and Hilton named best multinationals to work for in Europe 2020
Employee Benefits: Salesforce (pictured), Cisco and DHL Express are among the organisations that have been named in European’s Best Multinational Organisations to work for in 2020, by Great Place to Work UK. Read story
South Essex College introduces mental health platform for 1,000 employees
Employee Benefits: South Essex College has introduced an online mental health platform to support the wellbeing of its 1,000 employees. Read story
67% of staff are looking forward to connecting with colleagues when returning to the office
Employee Benefits: Just over two-thirds (67%) employees in the UK are most looking forward to communicating with their fellow colleagues when returning to the office, according to research by CIPHR. Read story
Jobseekers still looking to work for organisations that share their values
Workplace Insight: Covid-19 has changed the profile of today’s jobseekers and as such, an organisation’s purpose is valued more than ever suggests new research from the recruitment agency Hays. Read story
SMEs cite cost as 'main barrier' to wellbeing
Cover: Employers lack of understanding of what wellbeing support is available, according to Health Shield. Read story
Taking positive action on ethnicity pay
HR Magazine: So far 2020 has been a tumultuous year in which the world of work has transformed. Ironically, it has taken a global pandemic to highlight some key employment issues that have been simmering and push them up the agenda of business leaders. Read story
DC value consultation a 'wake up call' but consolidation not always easy
Professional Pensions: Plans to improve value to members in defined contribution (DC) plans by improving investment options and governance while consolidating small schemes have been welcomed as a “wake-up call” for the industry. Read story
Schemes in 'denial' over dependence on 'once-a-century' equity performance to close funding gaps
Professional Pensions: Underfunded defined benefit (DB) pension schemes in the UK are over-dependent on historically improbable equity returns, analysis by Willis Towers Watson reveals. Read story
Redundant local civil servants face pension cut
Pensions Expert: Public sector members of the Local Government Pension Scheme aged above 55 who are made redundant and want to retire early will face a cut to their benefits, according to new rules proposed by the government. Read story
McCloud to delay LGPS progress on pensions dashboards
Pensions Expert: The McCloud reform will create challenges for Local Government Pension Scheme funds to provide information for the pensions dashboards, with a delay that could take up to three years. Read story
Scottish government introduces mental health support package for school staff
Employee Benefits: The Scottish government has introduced a new funding package to support the mental health of employees working at schools due to the pressures of the Covid-19 (Coronavirus) pandemic, effective October 2020. Read story
Department for Work and Pensions launches consultation on long-term asset planning
Employee Benefits: The Department for Work and Pensions (DWP) has launched consultation encouraging pension schemes to invest more in a wide range of long-term assets. Read story
Arcadia agrees to full notice pay for staff facing redundancy
Employee Benefits: Retail employer Arcadia has agreed to pay the full salaries of more than 40 head office employees who face redundancy. Read story
Childcare crisis risks pushing women out of workforce, says TUC
Employer News: According to the latest TUC poll announced earlier this week, around 2 in 5 (41%) working mums with children under 10 can’t get – or are unsure whether they will get – enough childcare to cover the hours they need for work this September. This means it will push more women out of work due to the difficulty in juggling work and childcare. Read story
Less than 7% of pension scam reports passed to police for investigation in 2019
Pensions Age: The government has been urged to include financial harms within the Online Harms Bill after a freedom of information (FOI) request revealed that just 6.6 per cent of pension scam reports were passed to the police for investigation in 2019. Read story
Funding retirement remains primary financial worry for UK workers
Pensions Age: Funding retirement continues to be the most commonly cited financial worry for UK employees, with 34 per cent naming it as their top money concern, research from Close Brothers has revealed. Read story
Beyond the Zoom boom - training in a post-COVID world
HR Magazine: When COVID-19 closed the door on most face-to-face interaction, the world switched to webinars, conference calls, and other forms of remote communication. Unfortunately, not every corporate function seamlessly transitioned from in-person to virtual. HR and learning & development teams faced the challenge of translating existing face-to-face training sessions into compelling virtual experiences. Read story
More than a quarter of employees forced to cancel annual leave in 2020
HR Review: This was discovered by BrightHR, a global HR software and employment law advice service who found that 28 per cent of BrightHR users cancelled their annual leave this year. Read story
Pension Schemes Bill will be law by the end of the year
Professional Pensions: Despite an anticipated delay in the Pension Schemes Bill being debated in the House of Commons, Guy Opperman has confirmed he fully expects it to be law by the end of 2020. Read story
Mercer launches DB master trust as scheme pressures grow
Professional Pensions: Mercer has launched a defined benefit (DB) master trust in a bid to offer a “best-in-class solution” that recognises the shrinking universe. Read story
Industry raises significant concerns over FCA consultation on advising on pension transfers
Professional Pensions: The industry has raised serious concerns that Financial Conduct Authority (FCA) transfer advice proposals on illustrative figures could hamper schemes’ ability to help members to understand their retirement options and force many to take full regulated advice. Read story
Government called on to decouple employee/employer AE thresholds
Professional Pensions: Investment and advice giant Quilter has called on the government to consider decoupling employee and employer contribution thresholds for auto-enrolment (AE) due to the pressures of Covid-19. Read story
What might replace furlough? (And how likely is this?)
People Management: Many are calling on the government to extend the job retention scheme or look to other options. People Management rounds up these proposals and asks experts how they could work. Read story
Mitie awards 25,000 employees extra day of annual leave
Employee Benefits: Outsourcing organisation Mitie has awarded its 25,000 employees an extra day of holiday to reward them for their hard work during the Covid-19 (Coronavirus) pandemic. Read story
46% of employers have increased health and wellbeing focus
Employee Benefits: Almost half (46%) of employers have increased their organisation’s focus on employee health and wellbeing due to the Covid-19 (Coronavirus) pandemic, according to research by Employee Benefits. Read story
Three social care agencies ordered to pay homecare workers £100,000 in back pay
Employee Benefits: Social care agencies Kammil Education, Diligent Care Services and Premier Carewaiting have been ordered to pay homecare workers over £100,000 in back wages, after they were found to be breaching wage rules by an employment tribunal. Read story
Top Juice pays back $32,435 in back wages
Employee Benefits: Australian beverages organisation Top Juice has paid $32,435 (£18,428) in unpaid wages to employees, following on from an investigation by The Fair Work Ombudsman. Read story
Just 20% of staff felt firms met their needs during pandemic
HR Grapevine: The safety and wellbeing of staff has been a top priority for employers throughout the coronavirus pandemic. However, new research has discovered that some employees believe that their organisation didn’t meet their needs throughout the crisis. Read story
Over half of UK workers haven’t received mental health support despite rise in anxiety, study reveals
HR News: A survey carried out by mental health organisation, TalkOut, has revealed that 56% of UK workers haven’t received any mental health support or advice from their employer since the pandemic hit in March. Read story
Baroness Altmann: Women’s state pension – maladministration not discrimination?
Corporate Adviser: The Court of Appeal’s clear ruling this week found sharp increases in women’s State Pension Age did not discriminate against women. But the injustice felt by so many women may be due to maladministration rather than discrimination. Read story
TPR to remove late payment reporting flexibility from January
Professional Pensions: The time flexibility provisions introduced to help schemes which need to report late payments from employers for workplace pension schemes will be revoked, The Pensions Regulator (TPR) has confirmed. Read story
DB members with weak employers face 50% chance of benefits cut
Professional Pensions: Defined benefit (DB) scheme members with weaker employers face a 50% chance of a cut in benefits due to sponsor insolvency, according to Hymans Robertson. Read story
TPR’s new guidance on mandatory AE reporting causes confusion
Pensions Expert: Updated guidance from the Pensions Regulator will see the 90-day limit for reporting late payments becoming mandatory from April 2021. However, the wording of the guidance has caused some confusion, with schemes being asked to make the adjustment for January 1. Read story
Firms spend record £6.6bn plugging skills gaps, report finds
People Management: Experts urge employers to take longer-term approaches to talent, as inflated salaries, temporary staffing and recruitment fees add to the financial burden of Covid-19. Read story
Squire Patton Boggs returns associates to full pay
Employee Benefits: Law firm Squire Patton Boggs will return its employees to full pay following the pay cuts that were put in place due to the Covid-19 (Coronavirus) pandemic, effective from October 2020. Read story
Oyo introduces flexible-working policy
Employee Benefits: Hospitality business Oyo has introduced a flexible-working policy to support the wellbeing of its employees. Read story
38% of employers do not know the cost of healthcare benefits
Employee Benefits: More than a third (38%) of respondents do not know how much providing healthcare is estimated to cost their organisation, according to research by Employee Benefits. Read story
Accenture, Allianz and L’Oreal recognised in the Top 100 most diverse and inclusive global organisations
Employee Benefits: Accenture (pictured), Blackrock, Allianz and L’Oreal have been included in the Top 100 most diverse and inclusive global organisations, ranked by the diversity and inclusion index (D&I index). Read story
Axed staff bonuses 'will come as a blow'
HR Grapevine: The department store John Lewis has revealed that staff will not receive a bonus as a result of the Government imposed lockdown period which saw stores across the UK close. Read story
Over half of workers have not received any Covid-19 mental health support from employers
HR Review: Since March over half of workers have not received any mental health advice or support from their employer during the spread of COVID-19. Read story
94% of industry backs increased trustee power to halt potential scam transfers
Professional Pensions: Trustees should have the ability to pause suspected scam transfers, respondents agreed in a Professional Pensions poll. Read story
Ditch gilts-based valuations to generate £40bn of value, TPR urged
Professional Pensions: Pension schemes have been “shoehorned” into valuing liabilities against gilts, creating a “herd mentality” that does not reflect scheme funding accurately, says PwC. Read story
Working from home may be more productive, but at the cost of wellbeing
Workplace Insight: New research by the CIPD claims the shift to home working over the pandemic has been a positive experience for most employers, who report people’s improved work-life balance (cited by 61 percent of employers), enhanced employee collaboration (43 percent) and improved focus (38 percent). Read story
John Lewis DB pension deficit rises to £623.8m
Pensions Age: John Lewis’s defined benefit (DB) pension deficit increased by £567.6m year-on-year to £623.8m, as at 25 July 2020, its half year financial results report has revealed. Read story
How tracking absenteeism can help tackle mental health in the workplace post Covid-19
HR News: In the run up to World Mental Health Day on 10th October, Adrian Lewis, director at Active Absence is calling on employers to offer better support for staff who may be suffering from mental health issues, which are amplified this year due to Covid-19. Read story
47% of UK’s top performing SMEs provide regular, formalised training for all staff
Incentive and Motivation: A new study, commissioned by business bank, Allica Bank, shows that the practice of regular training correlates strongly with high performance in SMEs and will be vital to businesses’ prospects of a swift recovery post-COVID. Read story