At a glance: reward and benefits headlines this week 27 April - 3 May 2018
The headlines you might have missed between 27 April - 3 May.
Pension withdrawals hit £1.7bn in first quarter
Money Marketing: Savers withdrew £1.7bn using the pension freedoms in the first quarter of this year, according to data from HM Revenue and Customs. Read story
Cirkle launches employee ownership trust
Employee Benefits: PR and digital communications consultancy organisation Cirkle has launched an employee ownership trust. Read story
Employees entitled to at least 50% of pension if employer becomes insolvent rules EU court
Employee Benefits: The Advocate General at The Court of Justice of the European Union (CJEU) has ruled that employees are entitled to at least 50% of the total value of their accrued pension pot in the event that their employer becomes insolvent. Read story
Early retirees 'feel most comfortable' but lose £3,400 every year, finds research
Professional Pensions: Those retiring early are worse off each year compared to those retiring at the state pension age, but are the most comfortable when it comes to their financial situation, according to Prudential. Read story
£17.5bn pension freedom figure 'fails to reflect big picture’
Professional Pensions: HMRC figures published on Friday suggest almost £17.5bn has been flexibly withdrawn since the inception of pension freedoms, but that figure is not reflective of 'the bigger picture', according to one industry expert. Read story
Shared parental leave: Three years on
HR Magazine: The reality of shared parental leave since the recent EAT ruling in Capita Customer Management v Ali. Read story
Employee benefits need a personal touch
Reward: Individuals respond to a personalised approach to employee benefits, wellbeing and pensions. Technology can boost engagement, if it delivers the right message says Dipa Mistry Kandola, head of flexible benefits services at LCP. Read story
Elon Musk earns less than average Tesla staff member
HR Grapevine: The Chief Executive of Tesla Motors, Elon Musk, made less than the median Tesla employee in 2017 according to a report in Market Watch. Read story
Hermes self-employment legal challenge begins
Personnel Today: A legal case against courier firm Hermes is to begin today, with several self-employed drivers seeking to win basic employment rights. Read story
Working mothers increase by almost 50% over 40 years
Personnel Today: The proportion of working-age mothers in paid work increased by almost 50% over four decades, according to the Institute of Fiscal Studies (IFS). Read story
Coats proposes merger of its UK DB schemes
Pensions Expert: Industrial thread manufacturer Coats has proposed a merger of its three UK defined benefit pension schemes to cut costs and increase efficiency. Read story
£1.6bn paid in group risk claims in 2017
Employee Benefits: Just over £1.6 billion was paid out by the group risk industry over 2017, showing a £120.5 million increase on payments made in 2016, according to research by industry body Group Risk Development (Grid). Read story
Pure Planet equalises maternity and paternity benefits
Employee Benefits: Renewable energy supplier Pure Planet has equalised its maternity and paternity benefits, enabling both mothers and fathers to take up to 52 weeks of leave to care for a new child at an enhanced pay rate. Read story
Walmart to retain Asda scheme after Sainsbury's merger
Professional Pensions: Obligation for the Asda defined benefit (DB) pension scheme will not be shared between Walmart and J Sainsbury following the merger of their two supermarket businesses, it has been confirmed. Read story
Defined benefit pension funding deficit falls to £200bn as of April 2018
Employee Benefits: The funding deficit for defined benefit (DB) pension schemes in the UK has fallen to £200 billion at the end of April 2018, according to research by PricewaterhouseCoopers (PWC). Read story
Groendyke Transport awards drivers 9.4% pay increase
Employee Benefits: North American tank trunk transportation organisation Groendyke Transport has awarded a 9.4% increase in its average hourly non-revenue pay rates for its 1,321 drivers as part of an initiative to create a sustainable pay model. Read story
McDonald’s employees strike in dispute over pay
Employee Benefits: Employees of restaurant organisation McDonald’s who are members of The Bakers Food and Allied Workers Union (BFAWU) are undertaking strike action today (Tuesday 1 May 2018) in a dispute over pay, trade union recognition and fixed hour contracts. Read story
MP urges government to take action over pension clawback as result of contracting out errors
Professional Pensions: The prospect of public sector workers losing some of their pension because of mistakes made by the government is "disgraceful", the Liberal Democrat work and pensions spokesman says. Read story
Group risk payouts up £41m as 7,800 referred to support
Corporate Adviser: Group risk payouts rose by £41m year on year to December 2017, with more than 7,000 people referred to help and support, according to figures from Group Risk Development (Grid). Read story
What perks would employees leave for?
Incentive and Motivation: Far from rewards being less important, according to Gallup’s recent State of the American Workplace report, employees categorically say they would be willing to leave their current job for one that offers greater flexibility and financial rewards. Read story
Benefits of workplace eye-care
Reward: Research reveals eye-care is amongst one of the most valued employee benefits for employers and employees. Read story
How employers need to embrace flexible working to retain talent
Personnel Today: With the UK on the brink of a skills shortage, employers need to embrace flexible working to retain talented staff and attract an engaged workforce. Ashleigh Wight reports. Read story
Male employee on shared parental pay not directly discriminated against, rules EAT
Personnel Today: It is not direct sex discrimination to offer men on shared parental leave statutory pay while at the same time offering enhanced maternity pay, the Employment Appeal Tribunal ruled today. Read story
Pensions regulator in ‘active discussions’ over merger of Asda and Sainsbury’s
Money Marketing: The Pensions Regulator is discussing the potential impact of a tie up between Sainsbury’s and Asda on the companies’ pension schemes, it has confirmed. Read story
Employment Appeal Tribunal rules against Leicestershire Police on parental pay comparisons
Employee Benefits: The Employment Appeal Tribunal (EAT) has ruled that a police constable was subject to indirect sex discrimination, only being able to take shared parental leave at the statutory rate of pay, whereas female constables have the option of taking enhanced maternity leave at full pay. Read story
BA hearing - Day 1: Airways trustees put in 'invidious position of paymaster’
Professional Pensions: Concluding that the purpose of a pension scheme is not simply to apply the employer's preferred remuneration strategy would result in trustees becoming "paymaster", the Court of Appeal has been told. Read story
Toshiba agrees £170m pension buyout in deferred member deal
Professional Pensions: The trustee of the Toshiba Pension and Assurance Scheme has secured a full bulk annuity for its 1,350 members through Rothesay Life. Read story
Lifetime allowance tax take triples after threshold cut
Money Marketing: Savers who breached the lifetime allowance paid a third more in tax bills last year, new figures show. Read story
Failing to enhance shared parental pay may be indirectly discriminatory, finds EAT
People Management: Employers that enhance maternity pay but only pay the statutory rate for shared parental leave (SPL) are potentially indirectly discriminating against men, the Employment Appeal Tribunal (EAT) ruled yesterday. Read story
Presenteeism at all-time high
HR Magazine: Incidents of presenteeism have tripled since 2010, according to CIPD research. Read story
Let’s Level the playing field
Reward: State Street Global Advisors’ Sophie Ballard offers some ideas on how to improve pensions communications for women. Read story
TPR seeks forced entry powers to seize business assets for unpaid fines
Professional Pensions: The Pensions Regulator (TPR) has warned it will seize assets from employers who fail to pay fines relating to their schemes in a further strengthening of its enforcement activity. Read story
BA hearing - Day 2: Trustees 'little more than cyphers' if actions require employer consent
Professional Pensions: Trustees would have limited role in scheme governance if their duties simply include applying the employers' remuneration strategy and always seeking consent for other changes, the Court of Appeal has been told. Read story
29% of new group income protection claims in 2017 related to mental health issues
Employee Benefits: More than a quarter (29%) of new group income protection claims in 2017 were for mental health issues, according to research by Legal and General. Read story
Kellogg’s to run summer hours scheme for Manchester-based staff
Employee Benefits: Food manufacturing organisation Kellogg’s is running a summer hours scheme for its 420 Manchester-based staff. Read story
California court rules in favour of drivers in employment status case
Employee Benefits: The Supreme Court of California has ruled to restrict the classification of workers as independent contractors, and to adopt a worker-friendly system of classification, following developments in a case concerning parcel delivery organisation Dynamex Operations West. Read story
Which schemes are destined for the PPF?
HR Magazine: The majority of smaller stressed defined benefit schemes are likely to end up in the Pension Protection Fund, according to consultancy Barnett Waddingham, as it raised concerns that the Pensions Regulator's new tougher stance may remove vital flexibility from the system. Read story
Companies should be fixing pension deficits faster, MPs told
People Management: Companies with a deficit in their defined benefit (DB) pension schemes should be made to speed up their recovery, the chief executive of the Pension SuperFund told MPs yesterday. Read story
TSB boss misses out on bonus after IT disaster
HR Grapevine: The Chief Executive of TSB will not be receiving a bonus of £2million following the bank’s ongoing IT catastrophe. Read story