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At a glance: reward and benefits headlines this week 20 - 26 November 2020

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 20-26 November 2020. 4F30-1605957574_headlinesMAIN.jpg

CDC ‘beats drawdown by 57pc’ – Willis Towers Watson
Corporate Adviser: An at-retirement collective DC structure could deliver sustainable income 57 per cent higher than can be achieved by an income drawdown investor and 49 per cent more than an annuity, according to figures from Willis Towers Watson. Read story

LGPS-backed infrastructure fund invests in East Coast Main Line Fleet
Professional Pensions: GLIL Infrastructure has agreed to acquire a 30% equity stake Agility Trains East (ATE) for a rolling stock fleet of 65 new UK intercity trains from Tokyo-headquartered Hitachi Rail. Read story

Net-zero target should not be mandated as part of the Pension Schemes Bill, industry says
Professional Pensions: The majority of the pensions industry agrees an eventual net-zero target should not be mandated for schemes as part of the Pension Schemes Bill, according to a Professional Pensions poll. Read story

TPS phased withdrawal plan arrives too late for hundreds of schools
Pensions Expert: Teachers’ organisations and pension professionals have given a lukewarm welcome to the Department for Education’s proposal to allow independent schools to retain Teachers’ Pension Scheme membership for existing staff, while at the same time offering private plans for new staff. Read story

Covid renewing employers’ focus on internal talent pools, research finds
People Management: Experts warn against cutting ‘vulnerable’ L&D budgets in challenging times or risk potential future growth. Read story

UK at ‘coronavirus crossroads’ for gender equality, report warns
People Management: Female employees could prosper or suffer depending on the actions of employers and the government, campaigners claim. Read story

33% of employers have reviewed sickness policies due to Covid-19
Employee Benefits: One-third (33%) of employers have reviewed their organisation’s sickness policy due to the Covid-19 (Coronavirus) pandemic, according to research by Paydata. Read story

Home Bargains rewards 22,000 employees with two weeks’ extra pay
Employee Benefits: Retail organisation Home Bargains is to reward its 22,000 employees with two weeks’ extra pay to thank them them for their hard work. Read story

Anglian Water reports 5.7% mean gender pay gap
Employee Benefits: Utilities organisation Anglian Water has reported a mean gender pay gap of 5.7% for average hourly pay as at April 2020, down from 5.9% the previous year. Read story

UK staff pulling longer hours & taking fewer sick days
HR Grapevine: New research has found that UK staff are pulling longer hours and taking fewer sick days in what could be described as a ‘wellbeing timebomb’. Read story

DB trustees to equalise GMPs in past transfers following 'landmark' High Court ruling
Pensions Age: The High Court has ruled that trustees of defined benefit (DB) schemes that provided Guaranteed Minimum Pensions (GMPs) should revisit and, where necessary, top-up historic cash equivalent transfer values (CETVs) that were calculated on an unequalised basis if an affected member makes a successful claim. Read story

Equal pay day 2020: What the pay gap looks like for women
HR News: This year, Friday 20th November officially marks Equal Pay Day 2020 in the UK – the day in the year where women effectively start working for free. Read story

HR could be guilty of age discrimination by incorrectly using post-work benefits
HR Magazine: Post-work benefits such as pensions and permanent health insurance (PHI) are being incorrectly used by HR teams, according to Tim Cox, pension law partner at Linklaters. Read story

Over a third of employers worry about making redundancies in a fair and compliant way
HR Review: Research highlights that making redundancies in a fair way is a top concern for HR teams with around a third fearing that they will not be able to do this. Read story

High court ruling creates further problems for DB schemes on GMP equalisation
Corporate Adviser: Those who have transferred out of a defined benefit scheme over the past 30 years now urgently need to seek advice on whether they are due top-up payments, following a high court ruling last week. Read story

Pension tax reform support remains high; Sunak flags potential changes
Professional Pensions: The majority of employers currently support the simplification of the pension tax regime, with evidence mounting of its adverse impacts, the Association of Consulting Actuaries (ACA) finds. Read story

Number of unemployed older workers increased by a third during lockdown, data suggests
People Management: Experts warn of a long-term unemployment ‘disaster’ for over-50s and call on businesses to tackle ‘systemic ageism’ in the workplace. Read story

94% of employers have introduced measures to support staff welfare
Employee Benefits: The vast majority (94%) of employers have introduced measures to support employee wellbeing, according to research by recruitment firm Wade Macdonald and law firm Doyle Clayton. Read story

Hermes UK launches mental health first aiders programme
Employee Benefits: Parcel delivery organisation Hermes UK has appointed 72 mental health ambassadors to promote good mental health across its organisation. Read story

Mental health issues in young fathers caused by a lack of support in work and educational settings
Workplace Insight: New research published by Leeds Trinity University and parenting platform DaddiLife claims that young fathers face preventable barriers when accessing education and employment, leaving some in vulnerable positions with an increased risk of facing mental health issues. Read story

Disappointment as pensions dashboard further delayed until 2023
Employer News: THE PENSIONS Dashboards Programme (PDP) has announced that the long-awaited pensions dashboard will be further delayed until 2023 – four years after its original target of 2019 – causing mixed reactions within the industry. Read story

ONS data reveals 'stark' ethnicity pensions gap
Pensions Age: Industry experts have called for greater support to close the ethnicity pensions gap after the latest figures from the Office for National Statistics (ONS) revealed a "stark difference" between private pension wealth levels. Read story

92% of pension schemes expect to increase renewables as divestment slows amid Covid pandemic
Pensions Age: The majority (92 per cent) of pension schemes plan to increase their allocations to renewables over the next three to five years, despite the pandemic slowing the pace of divestment, research from Octopus Renewables has found. Read story

Wellbeing initiative blocked by lack of senior management support
HR Review: Research explores the key barriers which prevent HR teams from implementing wellbeing initiatives which are mainly linked to a lack of support from senior management staff. Read story

Speculation of Govt tax raid on pensions surfaces again
Corporate Adviser: Rumours that the chancellor will look to reduce higher rate tax relief on pensions, to help make cost savings in a post Covid environment, have surfaced again. Read story

Just Group agrees £74m buy-in with engineering scheme
Professional Pensions: Just Group has completed a £74m pensioner buy-in with the UK pension scheme of a US-listed engineering business. Read story

92% of pension funds to allocate to renewables; Covid-19 recovery slows fossil fuel divestment
Professional Pensions: While the majority (92%) of pension funds in the UK plan to increase their allocations to renewables, the economic impacts of the coronavirus will see larger climate-positive moves such a fossil fuel divestment significant delayed, Octopus Renewables says. Read story

PPF reserves could be ‘wiped out’ by one or two big claims
Pensions Expert: Pension Protection Fund chief executive Oliver Morley has warned that the lifeboat’s reserves could be wiped out by just a few large claims, while downplaying the risk of a post-Covid run of small-scheme claims. Read story

What does the new tiered lockdown scheme mean for employers?
People Management: As England prepares to move into a new system of regional restrictions, People Management asked the experts how businesses should react. Read story

Rostrum introduces a new health and wellbeing benefit for staff
Employee Benefits: PR and content marketing agency Rostrum has introduced a health and wellbeing benefits plan for its 28 employees. Read story

World of Books gives employees early access to pay
Employee Benefits: Online book retailer World of Books is giving its 537 staff instant access to their pay to support their financial wellbeing during the Covid-19 (Coronavirus) pandemic. Read story

Kraft Heinz Company reports mean gender pay gap of -6.5%
Employee Benefits: Food organisation Kraft Heinz Company has reported an overall mean gender pay gap of -6.5% for average hourly pay as at April 2019, down from -7.5% the previous year. Read story

PM encourages staff to WFH if possible until April 2021
HR Grapevine: Yesterday, UK Prime Minister Boris Johnson laid out the Government’s revised three-tier system which will replace the national lockdown from December 2, 2020. Read story

Maternity leave costs UK women £3.2bn in earnings
Cover: Average salary for a woman during maternity leave is £14,835, which is £12,852 less than UK average. Read story

Govt urged to create UK Pensions Council to strengthen stewardship
Pensions Age: The HM Treasury-led Asset Management Taskforce has published 20 recommendations to place stewardship at the heart of the ‘build back better’ post-covid-19 agenda, including plans for a council of UK pension schemes. Read story

Workforce Engagement: 5 Steps for a Healthy and Engaged Organization
HR News: Every organizational plan needs to contain a strategy for workforce engagement. Engaged workers are passionate, excited, committed, loyal, and highly involved in their work. Read story

Lockdown improves communication between employers and employees
HR News: Employees are happier with how information is being shared with them at work compared to when they worked in the office earlier this year, pre-Covid-19, as revealed in the annual Information Sharing Research by Engaging Business. Read story

42% of people don’t think they are saving enough to be financially secure
Incentive and Motivation: Research conducted by Cushon, the workplace savings provider, has found that 42% of people say they are not saving enough to consider themselves financially secure. With 87% of employers saying that financial worries have a negative effect on an employee’s performance, workplace savings have never been so important. Read story

Prime Minister states employees should work from home until April 2021
HR Review: Prime Minister Boris Johnson has unveiled the new plan for England following the easing of national lockdown on December 2nd. Employees that can work from home are being urged to do so, regardless of what Tier level their local area falls into. Read story

FSCS imposes new £92m levy as pension claims rise
Corporate Adviser: The Financial Services Compensation Scheme has raised a supplementary levy due to rising claims, which will raise costs for advisers and wealth managers. Read story

UPDATED: RPI to be reformed in 2030, but no compensation for gilt holders
Professional Pensions: The Retail Prices Index (RPI) will be reformed and aligned with the housing cost-based version of the Consumer Prices Index, known as CPIH, by 2030, the Treasury has confirmed. Read story

Companies overstate liabilities by £60bn amid Covid deaths
Professional Pensions: Companies could be overstating their pension liabilities by up to £60bn due to their life expectancy assumptions, according to XPS Pensions Group. Read story

Chancellor announces £3bn unemployment scheme and minimum wage increases
People Management: Government pledges tailored support for those out of work for more than a year, but warns joblessness could peak at 2.6 million in 2021. Read story

Zurich Australia introduces new family care policy for employees
Employee Benefits: Insurance organisation Zurich Australia is to introduce a new family care policy to support all working parents. Read story

Skanska UK moves to electric vehicle company car policy
Employee Benefits: Construction engineering organisation Skanska UK has introduced an electric vehicle company car policy.  Read story

Wickes introduces healthcare support for new parents
Employee Benefits: DIY retailer Wickes has introduced a healthcare support programme for its 8,000 employees and their partners if they become parents. Read story

Public sector pay rises to be targeted at NHS and low income staff
Employee Benefits: Spending Review 2020: Public sector pay increases are to be targeted at one million front-line staff in the NHS next year, as well as low income staff in the wider public sector, although just how much they will rise by is yet to be confirmed. Read story

How lockdown 2.0 has sparked new HR issues
HR Grapevine: While the first lockdown was a novel challenge for employers to take one of the upshots is that it might've helped HR leaders learn some lessons for 'Lockdown 2.0'. Read story

How to keep employees engaged until the end of the year
HR News: In what has been a year like no other, time seems to have flown by with just a month to go until Christmas and six weeks until the start of a new year. For employees, workloads are likely to be dominated by planning meetings and the inevitable rush to get projects finished up in time for the Christmas break. Read story

Chancellor announces £2.9 billion restart scheme to help unemployed people
HR Review: As part of the Spending Review, Chancellor Rishi Sunak has announced a scheme costing £2.9 billion which aims to help unemployed people find work. Read story

Trustees ‘false sense of confidence’ in strategy – BW
Corporate Adviser: Trustees have a false sense of confidence in their long-term strategy with nine out of 10 believing they are prepared for the future, but a similar proportion having had to change tack in the last year. Read story

XPS Pensions posts 9% uptick in H1 revenues
Professional Pensions: XPS Pensions posted a 9% increase in revenues during the six months to 30 September – a rise driven by a number of large client wins. Read story

Spending review leaves ‘big gap’ in skills investment, says CIPD
People Management: Experts warn the workforce needs to be equipped for changing job opportunities to help the economy recover in the aftermath of Covid. Read story

One in five employers monitoring remote workers or planning to do so, poll finds
People Management: Lawyers warn businesses could lose trust or fall foul of the law if they are not transparent about surveillance with their workforce. Read story

Osborne Clarke to begin reimbursing staff for Covid-19 pay cuts
Employee Benefits: Law firm Osborne Clarke is to begin reimbursing employees for salary reductions implemented as a result of the Covid-19 (Coronavirus) pandemic. Read story

Brits face £1,200 pay shock by 2025
HR Grapevine: According to new data released by think tank the Resolution Foundation, a group focused on ‘improving living standards for people on low incomes’, fallout from the COVID-19 pandemic could well see the average pay packet cut by up to £1,200 a year by 2025. Read story

Almost a third of Brits more willing to talk about finances
Cover: Three quarters feel stressed about money however 42% are uncomfortable talking about it, report shows. Read story

Staying Motivated While Working from Home
Employer News: Working from home has become the new norm for people all across the UK. However, staying motivated outside of the office environment can be a challenge. This article will explore how Brits are staying motivated, and what companies can do to help. Read story

88% of DB schemes forced to consider new strategy over past year
Pensions Age: The majority (88 per cent) of defined benefit (DB) pension schemes were forced to consider a new strategy in the last 12 months, despite 92 per cent of schemes stating that they are prepared for the next stage of their strategy, research from Barnett Waddingham has shown. Read story

Employers’ support for FTSE 350 pension schemes recovers from 3-year low
Pensions Age: Employers' support for FTSE 350 companies’ defined benefit (DB) pension schemes dropped to a three-year low in March due to Covid-19, but recovered as lockdown was eased in the summer, according to PwC. Read story

More than one in five people have no pension
Pensions Age: More than a fifth (21 per cent) of people do not have a pension, including one in 10 people over the age of 55, according to figures from MoneySupermarket. Read story

How not to underestimate the cost of employee absence to your business
HR News: A new survey into sickness absence rates and costs highlights an upward trend in the number of sick days an employee typical takes, with many employers underestimating the cost of absenteeism, something Adrian Lewis from Activ Absence is urging employers to address. Read story

Firms lack transparency over support for working parents
HR Magazine: Only a small minority of the UK investment management firms are disclosing how they support working parents, and the support that is available has been described as “invisible”. Read story