At a glance: reward and benefits headlines this week 27 November 3 December 2020
The headlines you might have missed between 27 November 3 December 2020.
How will pay packets be affected by Covid-19?
HR Review: New research analyses the impact of the Spending Review announced by the Chancellor earlier this week and what this will mean for pay packets. Read story
Aviva completes £875m second buy-in with own staff scheme
Professional Pensions: Aviva Life & Pensions has concluded an £875m buy-in with its own staff pension scheme, following on from a similar transaction last year. Read story
PASA looks to ramp up pensions admin standards with Deloitte partnership
Professional Pensions: The Pensions Administration Standards Association (PASA) has announced global consultant Deloitte as its expert knowledge provider for data. Read story
Covid delays Kent fund remedies after Woodford debacle
Pensions Expert: The Kent County Council Superannuation Fund’s auditor has flagged delays in attempts to learn lessons from the Woodford debacle as a serious risk to the scheme. Read story
Amazon to reward front-line employees with global recognition bonus
Employee Benefits: Amazon is to pay a special holiday recognition bonus to its front-line employees globally, in order to demonstrate its appreciation for their work. Read story
Median pensions wealth signficantly lower among some ethnic groups
Employee Benefits: There is a stark difference in levels of pension saving between people of different ethnicities, according to data from the Office for National Statistics. Read story
Retail price index phase-out will impact defined benefit pension schemes
Employee Benefits: The phasing out of the retail price index (RPI) in favour of the consumer prices index plus the cost of housing (CPIH) will have a significant impact on traditional defined benefit pension schemes. Read story
Leigh Day launches workers’ rights case against Stuart for couriers
Employee Benefits: Law firm Leigh Day has launched a group legal claim against delivery firm Stuart on behalf of couriers who are seeking to be recognised as ‘workers’. Read story
AA pension scheme members 'fully safeguarded' in £219m takeover
Pensions Expert: The AA has agreed to a £219m takeover deal that is expected to fully safeguard existing employment rights of the management and employees, including pension rights. Read story
Network Rail's DB pension deficit widens to £5.1bn
Pensions Age: Network Rail’s defined benefit (DB) pension schemes saw their deficit widen from £3.45bn to £5.10bn between 31 March 2020 and 30 September, according to the company’s interim results. Read story
How employees can build financial resilience in uncertain times
HR News: The coronavirus pandemic is continuing to act as a major drain on the health and finances of UK workers. Despite furlough being extended until March 2021, millions of people face heightened financial pressures because of cuts to their income and the prospect of redundancy. Read story
Three in five 18 to 24-year-olds have had issues keeping up with buy-now-pay-later repayments
HR News: Hastee, the earnings on demand technology provider, has released new findings from their recent research report* which outlines the new credit behaviours and financial concerns of young British workers ahead of the UK’s first online-only Black Friday. Read story
Communication hacks to boost employee engagement on pensions
Corporate Adviser: Changing the language used to describe pensions could significantly boost employee engagement with retirement savings, according to new research. Read story
New trustee guide tackles diversity issues
Corporate Advisor: Aon has published a new guide to help improving understanding of diversity and inclusion considerations among pension scheme trustees and members. Read story
Ros Altmann: Why Green’s liability to Arcadia is not the same as BHS
Corporate Adviser: This is a significant retail failure hastened by the pandemic, and it is difficult to see there being a regulatory or legal remedy to rescue its pension scheme members. Read story
Exclusive: Multiple dashboards unnecessary says industry in mixed Pension Schemes Bill feedback
Professional Pensions: More than four in five employers oppose the implementation of multiple pensions dashboards and any that do not include state pensions, the Association of Consulting Actuaries (ACA) says. Read story
A third of DB benefits to be insured by middle of 2020s, says LCP
Professional Pensions: The number of defined benefit (DB) scheme members with benefits protected by an insurer will double by the middle of the decade, according to Lane Clark & Peacock (LCP). Read story
Guy Opperman: Bill is a pathway for safer, better and greener pensions
Professional Pensions: In the first of a five-part series of articles for PP, pensions minister Guy Opperman sets out how impending legislation will improve pensions for members. Read story
One in seven workers say employer monitoring has increased during Covid
People Management: Research also reveals a quarter of staff have had their work communications screened as experts warn surveillance has ‘taken off’ since the pandemic began. Read story
Reagent Chemicals becomes accredited real living wage employer
Employee Benefits: Reagent Chemicals has become a real living wage employer, accredited by the Living Wage Foundation. Read story
Marks and Spencer announces closure on Boxing Day to give employees a rest
Employee Benefits: British retailer Marks and Spencer (M&S) has announced its decision to close on Boxing Day 2020 to give its employees a rest over the festive period. Read story
Newcastle upon Tyne Hospitals NHS Foundation Trust launches green reward scheme
Employee Benefits: Newcastle upon Tyne Hospitals NHS Foundation Trust has introduced a green reward programme to engage its 14,500 employees with environmental sustainability and wellbeing across all hospitals. Read story
Shell UK reports 18% mean gender and 8.5% ethnicity pay gaps
Employee Benefits: Energy and fuel organisation Shell UK has reported an 18% mean gender pay gap among 6,000 employees as at April 2020. It has also voluntarily chosen to report its ethnicity pay gap data, finding an 8.5% average difference. Read story
Surprising ways firms are rewarding staff this Christmas
HR Grapevine: Around Christmas time, it is not uncommon for employers and HR teams to recognise and reward employees for their hard work throughout the year. Read story
Timms calls on Green family to plug Arcadia’s pension deficit
Pensions Age: Work and Pensions Committee (WPC) chair, Stephen Timms, has called on Philip Green and his family, the owners of Arcadia, to plug the firm’s pension deficit. Read story
A third of DB pension members could be covered by insurers by 2025
Pensions Age: One in three defined benefit (DB) pension scheme members could have their pension rights covered by a buyout or buy-in by 2025, according to figures from LCP. Read story
Are virtual Christmas parties essential to boosting morale?
HR Review: New research shows that the majority of UK workers believe Christmas parties are a way of boosting morale and connection amongst the team. Read story
Aviva unveils string of enhancements to SME plans
Corporate Adviser: Aviva is adding a new guided hospital option, mental health pathway and cancer care enhancements to its Solutions private medical insurance cover for SME businesses. Read story
Guy Opperman: Climate change clauses a game changer for pension investment
Professional Pensions: In the second of a five-part series of articles for PP, pensions minister Guy Opperman talks about putting trustees’ duty to manage climate risk on a statutory footing. Read story
Green and TPR urged to find solution for Arcadia scheme members
Professional Pensions: The collapse of Sir Philip Green’s retail giant Arcadia must be met with clear solutions and support for its pension scheme, which looks likely to enter Pension Protection Fund (PPF) assessment, Stephen Timms has said. Read story
Arcadia, Debenhams the first high street dominoes to fall
Pensions Expert: High street retailer Debenhams became the latest domino to fall following the collapse of Philip Green’s Arcadia Group on Monday, with the pension schemes of both now entering the Pension Protection Fund assessment period. Read story
46% of staff have reappraised the value of benefits due to Covid-19
Employee Benefits: Just under half (46%) of employees say that the Covid-19 (Coronavirus) pandemic has made them reappraise the value of the benefits their employer offers when deciding to stay with or join a new employer, according to research by Maxis Global Benefits Network (Maxis GBN). Read story
Penguin Random House reports 16% mean ethnicity pay gap
Employee Benefits: Publishing organisation Penguin Random House has reported a mean ethnicity pay gap of 16% for average hourly pay as at April 2020. Read story
Scottish health and social care staff to receive £500 bonus
Employee Benefits: Over 300,000 health and social care staff in Scotland will receive a one-off £500 payment to reward them for their hard work during the Covid-19 (Coronavirus) pandemic. Read story
BREAKING: Capita sells employee benefits business to Benefex
Professional Pensions: Capita has sold its employee benefits business, Capita Employee Benefits, to Benefex following a strategic review. Read story
Employers need to offer physical and mental support for Long Covid
Employer News: Employers wishing to minimise the impact of Long Covid on both their employees and their organisation, should ensure that their health and wellbeing programmes include holistic and personalised support for staff for as long as they need it, according to RedArc’s team of nurses. Read story
Employee recognition programmes becoming 'stale and disconnected'
HR Magazine: Employee recognition programmes are becoming outdated and disconnected, according to rewards provider O.C Tanner. Read story
Aviva Master Trust switches to fully-integrated ESG default
Corporate Adviser: The Aviva Master Trust Trustees is adopting the ESG-integrated My Future Focus as the standard default investment strategy for the Aviva Master Trust. Read story
Purple Book reveals scheme funding has worsened, but PPF remains confident of success
Professional Pensions: Scheme funding in the defined benefit (DB) universe has worsened, but the Pension Protection Fund (PPF) remains confident it can tackle the challenges ahead, it says as it launches its 2020 Purple Book. Read story
One in eight older workers delaying retirement because of coronavirus, poll finds
People Management: Experts warn the outbreak has ‘decimated’ pension pots, although the rise in flexible working means more people are choosing to work longer. Read story
Unilever to trial four-day working week in New Zealand
Employee Benefits: Unilever is to begin a year-long trial of a four-day week at its offices in New Zealand with the aim of changing the way work is done, not increasing the hours worked over four days. Read story
Burges Salmon to repay government for cost of job retention scheme
Employee Benefits: Law firm Burges Salmon is to repay in full the money it received under the government’s Coronvirus Job Retention Scheme. Read story
Just 12% of organisations currently measure gender pensions gap
Employee Benefits: Just over one in 10 (12%) of organisations proactively measure their gender pensions gap, according to research by Employee Benefits. Read story
Timpson unveils 'Good News December' to combat COVID-19 woes
HR Grapevine: In a recent Twitter post, James Timpson, Chief Executive at retailer Timpson, explained that as an organisation, it has had “little good news to celebrate this year”. Read story
UK businesses still aren’t providing the flexible working employees want
Workplace Insight: According to new research from Tiger Recruitment, UK businesses still aren’t offering workers enough flexibility. While the pandemic has required many to work more flexibly from home, more than a quarter of employees questioned say they still aren’t happy with the flexible working options available to them, and men are just as dissatisfied as women. Read story
Case Study: How Covid is affecting staff mental health
Cover: SMP Healthcare director Lianne Harrington asked her team 10 questions, this is what she found out. Read story
Scheme funding levels drop as DB universe continues to shrink
Pensions Age: Defined benefit (DB) scheme funding levels fell to an average of 94.9 per cent, as of March 2020, from an average of 99.2 per cent 12 months prior, the Pension Protection Fund’s (PPF’s) latest Purple Book has revealed. Read story
Court of Appeal overturns 'wrong' High Court decision to block £12bn annuity transfer
Pensions Age: The Court of Appeal has overturned a High Court ruling to block the transfer of a £12bn portfolio of annuities from Prudential Assurance Company to Rothesay Life, stating that the original judge was "wrong" on a number of issues. Read story
Homeworking alone is false flexibility – we must go further for this generation of workers
HR News: The pandemic has seen a tremendous change in how, where and when we work. Indeed, up to 60% of us have been working remotely during this time, navigating home-schooling and balancing increasingly blurred home and work lives. Read story
Benefits of personalising employee Christmas rewards
Incentive and Motivation: Christmas is a time for showing goodwill. Providing a gesture of kindness, compassion, thoughtfulness and understanding. The festive season is also a time for stopping to reflect and appreciate what support you have. Read story
L&G extends lead as UK’s biggest DC pension provider
Corporate Adviser: Legal & General has extended its lead as the biggest UK DC pensions provider, growing its assets to £98.8bn by the end of June 2020, up 14 per cent year on year, compared to a sector average increase of 9 per cent. Read story
Around 240,000 pension savers may have lost more than £14bn to fraud
Professional Pensions: More than 240,600 savers have lost an estimated £14.6bn of pension savings to fraudsters, but a further £2.5trn remains potentially accessible to criminals, The People’s Pension (TPP) says. Read story
Lady Green brings forward £50m DRC as The Pension Superfund eyes Arcadia schemes
Professional Pensions: Lady Tina Green has agreed to pay a £50m deficit recovery contribution (DRC) to Arcadia’s pension schemes earlier than scheduled. Read story
Yodel agrees 4.75% pay increase for 3,300 employees
Employee Benefits: UK parcel carrier Yodel has agreed a two-year pay deal for its 3,300 employees. Read story
Zurich UK reports mean disability pay gap of 17.6%
Employee Benefits: Insurer Zurich UK has reported a mean disability pay gap of 17.6% for hourly pay as at April 2020. Read story
UK private sector pay predicted to increase by 2.4% in 2021
Employee Benefits: UK employees in the private sector are set to receive an average pay rise of 2.4% in 2021, according to research by Willis Towers Watson. Read story
Senior leadership still blocking wellbeing strategies
HR Magazine: HR teams are still faced with significant obstacles implementing wellbeing strategies, including a lack of buy-in from senior leaders. Read story