At a glance: reward and benefits headlines this week 15-21 May 2020
The headlines you might have missed between 15-21 May 2020.
Half of young adults saving more through lockdown
Corporate Adviser: Almost half of 18-30 year olds are saving more as a result of the lockdown, with 26 per cent of the UK population setting aside spare cash as a result of the lockdown spending freeze. Read story
PP poll reveals industry fears over post-crisis return to BAU
Professional Pensions: Two-thirds of the industry don’t expect to return to non-home offices until at least September and 55% don’t expect a return to face-to-face business as usual for at least a year, exclusive PP research reveals. Read story
Amazon extends Covid-19 pay benefits for 250,000 US and Canada employees
Employee Benefits: Technology giant Amazon is extending the increased hourly pay rate for 250,000 US and Canada employees until 30 May 2020. Read story
IHS Markit completes pension risk transfer
Employee Benefits: Global information provider IHS Markit has agreed two pension risk transfers with Legal and General, both in the UK and the US. Read story
81% say supporting mental wellbeing is good for business
Employee Benefits: Over four-fifths (81%) of employers believe it’s good for business to look after the mental wellbeing of its workforce, according to research by Group Risk Development (GRiD). Read story
Oakland City Council introduces 80 hours paid sick leave for employees
Employee Benefits: Oakland City Council in the US has voted unanimously to pass an emergency paid sick leave act for employees working in the city of Oakland, California. Read story
Supporting Employee Mental Health As They Return To Work
Cover: Since Wednesday, following confirmation from the UK Prime Minister, the national population has been allowed to take unlimited exercise outside and people who cannot work from home should return to the workplace, avoiding public transport. Read story
TPO reports firm to TPR for 'complete disregard' of AE duties
Pensions Age: The Pensions Ombudsman (TPO) has upheld a failure to pay complaint against Teddy Bear Corner Ltd (Teddy), and reported the firm to The Pensions Regulator (TPR) for its “complete disregard of the auto-enrolment (AE) regulations”. Read story
TPO orders NHS to update scheme member’s pension record
Pensions Age: The Pensions Ombudsman (TPO) has ordered NHS England to update an NHS Pension Scheme member’s pension record after the complainant alleged it failed to pay pension contributions. Read story
Women want pension funds to get tough on poor pay practices
Corporate Adviser: Almost three out of four women aged 40 or over want their pension funds to divest from companies with poor pay practices, according to a new survey. Read story
Dr Doug Wright: Supporting employees in gender transition
Corporate Adviser: The number of employees affected by gender identity issues may be bigger than you think says Dr Doug Wright medical director, health and protection, Aviva. Read story
Tool launched to help with coronavirus compliance
Professional Pensions: Hymans Robertson has launched a segment identifier tool to help schemes meet The Pensions Regulator’s (TPR) expectations during the Covid-19 pandemic. Read story
Unfunded public pensions to take £150bn hit from Covid-19
Pensions Expert: Overinflated estimates of UK economic performance could strain the affordability of unfunded public sector pensions, according to new estimates, with the government forced to weigh the continued security of public sector workers’ retirement against a £150bn tax burden on future generations. Read story
Half of private sector employers planning Covid-19 pay freezes, research finds
People Management: More than half of private sector employers are preparing to freeze pay over the next year because of the economic impact of the coronavirus outbreak, a poll of organisations has found. Read story
Wirral refuse collectors to receive 3.5% pay increase
Employee Benefits: 180 Wirral refuse collectors will receive a 3.5% pay rise, that will be backdated to April 2019, following on from talks with Unite and waste management business Biffa. Read story
2,200 Medirest healthcare front-line employees receive 5% pay rise
Employee Benefits: Medirest, the healthcare division of Compass Group UK and Ireland will be rewarding its 2,200 healthcare front-line employees who support the NHS, an 5% pay increase. Read story
Unilever launches mental wellbeing programme for 62,000 employees
Employee Benefits: Consumer goods organisation Unilever has launched a 14-day mental wellbeing resilience programme to increase employee engagement and to enhance the wellbeing of its 62,000 global employees. Read story
TPR hits back at DB funding code critics
Pensions Age: The Pensions Regulator (TPR) has said that it “strongly disagrees” with those calling for its defined benefit (DB) funding code consultation to be rethought or abandoned. Read story
Judge finds in favour of Carey Pensions in 'landmark' SIPP ruling
Pensions Age: The ‘long awaited judgement’ in the Adams v Carey Pensions case has now been published, with all claims against Carey Pensions dismissed on all grounds. Read story
Mental Health First Aiders need support now more than ever
HR News: The increase in mental health support required in the workplace in recent years has seen the rise in popularity of training volunteers to be mental health first aiders (MHFAs), and the current COVID-19 situation is putting further pressure on this group of employees, according to RedArc. Read story
24.4 million could return to work in first phase out of lockdown
HR Magazine: UK employers are planning to bring between 30% and 80% of their staff back to the workplace in the first phase out of lockdown, equalling 24.4 million employees​. Read story
MPs propose amendment to delay IR35 until 2023-24
HR Review: Today (19/05/20) backbench MPs have tabled an amendment to be discussed in the House of Commons to delay IR35 until 2023-24. Read story
Covid crisis: almost 50pc of companies to change staff benefits
Corporate Adviser: Four out of 10 companies are changing their employee benefits programmes in response to the Covid-19 pandemic and the effect it has had on working patterns. Read story
L&G pays out £307m in GIP claims
Corporate Adviser: Figures released by the insurer show that its group income protection policies last year helped 26 per cent of UK employees who were absent from work, due to long term illness or injury, return to work before their benefit came into payment. Read story
DB funding consultation 'even more relevant' in Covid-19 world, says TPR
Professional Pensions: It would not be appropriate to rethink or completely abandon the planned revision to the defined benefit (DB) funding code, The Pensions Regulator (TPR). Read story
IFS: Has AE been too successful?
Professional Pensions: Thousands of the country’s most financially insecure individuals are remaining in auto-enrolled schemes even if it may not be in their best interests to do so, the Institute for Fiscal Studies (IFS) finds. Read story
British Airways resumes pension transfer activities
Pensions Expert: British Airways is to resume its pension transfer activities following a short suspension due to the impact of the coronavirus crisis, Pensions Expert can reveal. Read story
Employers able to recover statutory sick pay this month, government says
People Management: Rebate scheme announced in March will open end of May, but experts warn small firms may not claim because launch took so long and the administrative burden is too high. Read story
Ryanair introduces pay cuts and unpaid leave for up to 3,000 employees
Employee Benefits: Irish airline Ryanair Holdings has announced the possibility of pay cuts and unpaid leave for up to 3,000 employees, due to the financial ramifications of the Covid-19 (Coronavirus) pandemic. Read story
Google gives staff holiday freebie to combat burnout
HR Grapevine: Since the majority of the UK was forced into homeworking due to Government lockdown measures, the lines between personal and professional life have blurred for many. Read story
Major opportunity for employers to step up mental health support post Covid-19 says Howden Employee Benefits & Wellbeing
Employer News: In Mental Health Awareness Week (18-24 May)[i], Cheryl Brennan Director of Corporate Consulting at Howden Employee Benefits & Wellbeing is urging employers to step up their workplace mental health services to support people returning to work post coronavirus lockdown. Read story
LGPS funds confident in employers' coronavirus resilience
Pensions Age: Local government pension scheme (LGPS) funds are less concerned than the average scheme about the strength of their employer during the coronavirus crisis, according to data from the Pensions and Lifetime Savings Association (PLSA). Read story
Surge in employers setting up cycle-to-work schemes
Corporate Adviser: There has been a surge in employers signing up to the government’s cycle-to-work scheme following the Covid-19 outbreak according to employee benefits advisers. Read story
Call for employers to step up mental health support after lockdown
Corporate Adviser: In Mental Health Awareness week two new reports calls for more targeted support, that removes stigma of discussing mental health in the workplace. Read story
Steve Webb claims HMRC will 'over-tax' pension freedom users during crisis
Professional Pensions: Pensions consultancy Lane Clark and Peacock (LCP) has called out HM Revenue & Customs' (HMRC) tax policy on flexible drawdown as "unacceptable", claiming it could lead to draconian tax penalties during Covid-19. Read story
Negative interest rate debate becomes 'very real' as UK inflation plunges to 0.8%
Professional Pensions: The debate concerning negative interests in the UK has now become “very real” after the UK Consumer Prices Index (CPI) 12-month inflation rate dipped to 0.8% in April from 1.5% in March, recording its lowest reading since August 2016 and putting it on course to hitting 0% in the coming months, according to market commentators. Read story
Music charity leaves Teachers’ scheme to offer benefits symphony
Pensions Expert: A hike in employer pension contributions has prompted a Birmingham-based charity to leave the Teachers’ Pension Scheme, using the savings from that decision to extend its benefits offering. Read story
Energy Assets launches health and wellbeing programme for 802 staff
Employee Benefits: Independent metering and utility network construction organisation Energy Assets has launched a health and wellbeing programme for its 802 UK employees. Read story
Harbour Healthcare gives 1,500 employees early access to pay
Employee Benefits: Care home business Harbour Healthcare will give 1,500 employees early access to their pay during the Covid-19 (Coronavirus) pandemic. Read story
51% of employees want more employer-led mental health support
Employee Benefits: Just over half (51%) of employees believe their employers should be offering more to support employee mental health, according to research by Secondsight. Read story
Half of UK employees still expect to be furloughed, fired, or take a pay cut in the next three months
HR News: Only half of current employees (51%) expect to continue to work normally over the coming three months, according to new research from professional services consultancy Barnett Waddingham. The rest expect to be furloughed, made redundant, or take a pay or benefits cut. Read story
Navigating sick pay during COVID-19
HR Magazine: Following the news that Emanuel Gomes, a cleaner at the Ministry of Justice (MoJ), passed away from COVID-19 earlier this month, several questions have arisen as to whether enough is being done to protect vulnerable workers both physically and financially during the coronavirus crisis. Read story
MPs amendment defeated with IR35 set to be rolled out in 2021
HR Review: The Government appears to be going ahead with the roll-out of IR35 to the private sector in 2021, despite backbench MPs tabling an amendment that the legislation should be delayed until 2023-24 in the House of Commons on the 19/05/20. Read story
Covid financial wellbeing focus: Locked down and hard-pressed for cash
Corporate Adviser: Employees’ financial resilience is a key factor in their overall wellbeing. The coronavirus lockdown is creating a unique set of new challenges, hears Sam Barrett. Read story
Closed property fund alternatives risk breaching AE legislation: TPR
Corporate Adviser: Trustees diverting contributions into alternatives to closed property funds may be breaching legislation by unintentionally creating default arrangements that should be subject to the charge cap, The Pensions Regulator (TPR) has warned. Read story
Struggling DB schemes avoid putting extra cash pressure on sponsors
Professional Pensions: Defined benefit (DB) schemes are looking for alternatives to seeking additional cash contributions from sponsors to manage payouts in the wake of the Covid-19 market disruption, according to Willis Towers Watson (WTW). Read story
DC schemes show Covid-19 recovery trend
Professional Pensions: Defined contribution (DC) pensions are showing positive signs of market recovery after dramatic falls in the number of expected retirements this year due to the ongoing coronavirus pandemic. Read story
Two-fifths of working parents balancing homeschooling with a full-time job, survey finds
People Management: Poll shows workers spend an average of 15 hours a week educating their children, with experts calling for more flexibility from employers. Read story
Hallam launches mental health first aiders programme
Employee Benefits: Digital marketing agency Hallam is appointing four mental health first aiders to promote good mental health across its organisation. Read story
Levi Strauss and Co introduces paid sick leave for part-time US store employees
Employee Benefits: American clothing organisation Levi Strauss and Co had introduced paid sick leave for part-time store employees in the United States (US). Read story
Will furloughed staff receive bank holiday pay?
HR Grapevine: As Brits get ready to down tools for another bank holiday weekend, many workers on furlough will be wondering how their pay will be affected. Read story
Businesses extend employee benefits to dependants during Covid-19
Employer News: Businesses are extending employee benefits to dependants, demonstrating the extra mile they are going to for staff during the pandemic. Towergate Health & Protection has seen businesses make a concerted effort to ensure that both employees and their dependants are supported during the Covid-19 crisis, particularly apt with Mental Health Awareness Week focusing on the theme of kindness this year. Read story
Govt will not intervene in pension investments affected by Covid-19
Pensions Age: The government has said that it does not believe that there are “proportionate interventions” to be made at this time in pension investments affected by the Covid-19 crisis. Read story