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14 Oct 2016
by Rebecca Patton

At a glance: reward and benefits headlines this week

Your quick-read round up of the reward and benefits stories appearing in the press in the past seven days.

The headlines you might have missed between 7-13 October 2016.

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43% of employers say the living wage improves morale and productivity
Employee Benefits: Just under half (43%) of employer respondents have found that paying the voluntary living wage improves employee morale and productivity, according to research by Middlesex University London and the University of Liverpool. Read story

Financial Conduct Authority consults on transaction cost disclosure for workplace pensions
Employee Benefits: The Financial Conduct Authority (FCA) has launched a consultation around proposals for standardising the procedure for disclosing transaction costs in workplace pension schemes. Read story

Workplace payroll giving must become a “social norm,” say campaigners
People Management: Five-year plan to get every large business to enable staff donations; just a quarter of employers currently on board. Read story

Are we wrong about how to value DB liabilities?
Professional Pensions: In a letter to the editor, retired actuary Richard Abramson explains why both Dan Mikulskis and Con Keating could be wrong about how to value DB liabilities. Read story

TPAS, Pension Wise and MAS to merge
Corporate Adviser: The Pensions Advisory Service, Pension Wise and the Money Advice service will be merged into a single public body offering debt advice, money and pensions guidance, the Treasury has confirmed. Read story

Sponsors backing RPI/CPI switch – ACA research
Corporate Adviser: Over 90 per cent of sponsoring employers support legal reforms that would allow defined benefit schemes to move to CPI indexation of benefits, research from the Association of Consulting Actuaries has found. Read story

Malcolm McLean: The state pension’s surprising generosity to contracted-out DB members
Corporate Adviser: The new state pension is surprisingly generous for members of contracted-out final salary schemes says Barnett Waddingham senior consultant Malcolm McLean. Read story

Comet scheme enters alternatives space
Pensions Expert: In a bid to improve diversification and returns, the Comet Pension Scheme has added alternatives to its portfolio, as rising deficits and the current economic environment prompt many pension funds to hunt for yield. Read story

Younger employees more affected by workplace stress
HR Magazine: 50% of Gen Y workers reported heightened stress at work, compared with 44% of Gen X and 35% of Baby Boomers. Read story

Employers need to prioritise mental health
Reward Guide: Ahead of World Mental Health Day, there is a growing need for employers to make positive mental health a top priority. Read story

Starbucks invests in mental health benefits
Reward Guide: The coffee chain Starbucks has boosted their mental health benefits for its Canadian employees. Read story

British Gas Court of Appeal decision confirms inclusion of commission in holiday pay
Employee Benefits: The Court of Appeal has confirmed that holiday pay calculations should include a representative amount of commission-based pay. Read story

81% who experience mental health issues see adverse impact on physical health
Employee Benefits: More than three quarters (81%) of respondents who have experienced mental ill-health issues have found that their physical health has suffered too, according to research by Axa PPP Healthcare. Read story

Bernard Matthews rescue plan 'appears to dump' DB scheme, MPs told
Professional Pensions: The pre-pack administration arrangement for turkey producer Bernard Matthews seems to have been designed to “dump” its pension scheme, the Work and Pensions Committee (WPC) has been told. Read story

‘Pension pain’ avoided as court rules retirement funds protected in bankruptcy
Professional Pensions: Savers will not be forced to fork out their retirement savings to pay outstanding debts if they have to declare bankruptcy, the Court of Appeal has ruled. Read story

NEST consultation raises concerns about monopoly and competition
Professional Pensions: DWP’s consultation into the future of NEST has generated some strongly contrasting responses about whether it should enter the at-retirement product market. Michael Klimes reports. Read story

Kickback questions for EBCs entering utility switching space
Corporate Adviser: Mercer’s move into utility switching offers the chance to deliver real benefit to employees – but utility switch deals also carry potential risks over disclosure of revenues and whether offers are table-topping. John Greenwood investigates. Read story

Twelvefold increase in AE defaulters says Aviva
Corporate Adviser: One in eight employers missed their auto-enrolment staging date in the second quarter of 2016, putting themselves at risk of a fine, according to figures from Aviva. Read story

Janssen takes a holistic approach to supporting employees’ mental wellbeing
Employee Benefits: As a healthcare organisation, Janssen is committed to helping its employees improve their mental and physical health. Read story

Wellcome Trust trains employees in mental health first aid
Employee Benefits: Mental health first aid training has helped the Wellcome Trust deal with a number of mental health issues presented by employees. Read story

33% feel comfortable talking to their employer about mental health issues
Employee Benefits: A third (33%) of respondents would feel comfortable talking to their employer about a mental health issue such as depression, according to research by Capita Employee Benefits. Read story

TPR and PPF call for more interventionist regulatory regime
Professional Pensions: The Pensions Regulator (TPR) and the Pension Protection Fund (PPF) have both called for the watchdog to have stronger and more punitive regulatory powers. Read story

AWE workers to be balloted over ‘insulting’ DB closure plans
Professional Pensions: Prospect is set to ballot workers at Atomic Weapons Establishment (AWE) for strike action over the company’s plans to close its defined benefit (DB) scheme. Read story

Public sector workers can receive huge pension boost by making voluntary payments
People Management: Up to £23,000 in additional savings available for ‘bargain rate’ of £4,000 in NICs, as former pensions minister highlights little-understood offer. Read story

Govt eyes pension tax relief reform to boost younger savers
Money Marketing: The Government is considering reform to pension tax relief which would provide bigger incentives to save for younger workers rather than older savers. Read story

Organisations should embrace transparency to reinforce employer brand
Employee Benefits: Organisations can build and reinforce their employer brand by embracing the opportunities that social sharing and transparency bring. Read story

Siemens builds family-friendly culture through promotion of shared parental leave
Employee Benefits: Siemens promotes shared parental leave to all of its employees. Read story

Frontier Agriculture embeds values through peer-nominated awards
Employee Benefits: Frontier Agriculture celebrates and reinforces its key values through a peer-nominated awards initiative. Read story

Bupa's Perry: Private sector 'must be bolder' in publicising contribution to UK healthcare
Cover Magazine: Bupa's Alex Perry has urged the independent healthcare sector to fight harder for customers, affordability and to be bolder in talking about its contribution to the UK healthcare system. Read story

‘Salami slicing’ pensions tax relief could cost govt billions
Professional Pensions: Tax relief reductions have lowered the allure of pensions relative to other savings products, potentially costing the government billions of pounds in lost tax revenue over the long term. Read story

Greater transparency could save average scheme £800k per year
Professional Pensions: Greater transparency of costs and charges for pension funds could save the average pension fund £800,000 per year, The Association of Member Nominated Trustees (AMNT) says. Read story

ABI establishes dedicated pensions dashboard team
Professional Pensions: The Association of British Insurers (ABI) has formed a dedicated team to take forward its pensions dashboard project. Read story

Reward Gateway announces SmartFit, a new product focused on employee wellbeing and employer value
HR News: SmartFit™ enables employers to provide staff leading discounts and the fastest access to the widest range of fitness options nationally with minimal HR administration. Read story

Reducing gender pay gap would add ‘£150bn to UK economy by 2025’
People Management: Nearly 80 per cent of women say business and employers should bridge the persistent gap in pay, finds report. Read story

Minimum wage should take account of total pay, says retail chief
People Management: Sir Ian Cheshire tells CIPD event approach to reward must change – and executive remuneration has become ‘embarrassing’. Read story

Employers missing a trick when it comes to the benefits of flexible working
Reward Guide: Over half (53%) of employees would sacrifice a 5% salary increase for the chance to work flexibly. Read story

End to Nortel feud in sight as agreement reached on pension payouts
Professional Pensions: An agreement has been reached on how to compensate members of the Nortel pension scheme after years of negotiations since the company went bust in 2009. Read story

MPs urged to probe costs and charges
Professional Pensions: The Transparency Taskforce (TTF) has called on the Work and Pensions Committee (WPC) to establish an inquiry into costs and charges for savers. Read story

Post Office steams ahead with DB closure for spring 2017
Professional Pensions: The Post Office has moved a step closer to shutting its defined benefit (DB) scheme to future accrual in March 2017. Read story

EY offers flexible working to support work-life balance and business performance
Employee Benefits: EY promotes flexible working among its employees in order to support a high-performance culture and a diverse workforce. Read story

Cath Kidston uses pulse surveys to gauge staff engagement
Employee Benefits: Retail organisation Cath Kidston introduced weekly pulse surveys to gather staff feedback and gauge employee engagement levels. Read story

Capital One drives pensions engagement via themed communications campaign
Employee Benefits: Capital One developed a tongue in cheek retirement-themed communications campaign to engage staff with pensions following the transition to a master trust in 2015. Read story

Court of Appeal safeguards bankrupts’ undrawn pensions
Pensions Expert: Savers who become bankrupt but have not yet drawn their pensions will not have to hand them to creditors, after a court ruling on Friday put an end to fears that pension pots were at risk. Read story

Motability supports staff to make informed investment decisions
Employee Benefits: Motability has always been keen for staff to be fully engaged in, and informed enough about its contract-based defined contribution stakeholder pension plan, so that they can decide how best to invest their pension contributions. Read story