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04 Sep 2015
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 28 August - 3 September 2015.

9% to repay mortgage with retirement savings
Employee Benefits: Almost one-tenth (9%) of respondents intend to use their retirement savings to repay their mortgage, according to research by insurance firm Partnership. Read story

Better work-life balance drives people to change jobs
Employee Benefits: Around a third (30%) of respondents believe that improved work-life balance is the primary reason someone may change their job, according to research from recruitment firm Robert Half UK. Read story

EDF Energy workers to stage 24-hour strike in pay dispute
WSB: Almost 500 EDF employees across London, southern and western England are to hold a 24-hour strike over pay disputes. Read story

How can employers support staff in tackling big societal issues?
Employee Benefits: Life for today’s employees is not quite as simple as it once was, when people could hope to find work with a local business that would offer a job for life and provide a generous defined benefit pension at the end of it. Read story

Goodman Masson attracts talent with supportive benefits
Employee Benefits: Four years ago, financial recruitment firm Goodman Masson reviewed its remuneration package and implemented a number of measures as part of its Benefits Boutique flexible benefits scheme. Read story

Kingfisher locks in gains as funding hits triggers
Pensions Expert: Kingfisher pension scheme has continued to progress towards its 2030 buyout target with a £150m shift from return-seeking to matching assets after tipping into surplus. Read story

Cambridge uni scheme scrutinises opt-outs in prep for re-enrolment
Pensions Expert: Cambridge University Assistants’ Contributory Pension Scheme is examining the causes of opt-outs as it prepares to re-enrol members into its hybrid scheme next year. Read story

Has the advice gap helped pension scams to thrive?
Retirement Planner: IFAs should be playing a big part in the battle against pension scams. However, the growing advice gap has stopped the crucial message getting through. Read story

FCA launches 'forensic' analysis of annuity sales
Professional Pensions: The Financial Conduct Authority (FCA) is investigating thousands of annuities sold on a non-advised basis since 2008 to see if they were unsuitable for savers. Read story

Tesco forced to offer concessions following DB closure consultation
Professional Pensions: Tesco will provide staff with concessions after plans to close its final salary defined benefit (DB) pension scheme triggered a flood of complaints from employees and unions, according to reports. Read story

Employers are failing to adapt DC default strategies to April freedoms
Professional Pensions: Almost two thirds of companies have not changed their defined contribution (DC) default investment strategies to take account of the pension flexibilities, according to two surveys. Read story

Workers do not understand tax relief and would welcome a flat rate
Professional Pensions: People do not understand or value tax relief on offer for pension contributions, and would welcome a flat rate of relief, according to two pieces of research. Read story

Compulsory living wage ‘not economically justified’, says former Sainsbury’s chief
CIPD: Former Sainsbury’s chief executive Justin King has warned that the compulsory national living wage will cause job losses when it comes into force in April 2016. Read story

Oliver Bonas receives living wage accreditation
Employee Benefits: Independent high street retailer Oliver Bonas has been accredited as a living wage employer, meaning that all staff will now be paid at least £7.85 an hour. Read story

Government steps up penalties for national wage non-compliance
Employee Benefits: The government has doubled the penalty fines for employers that do not pay their staff the national minimum wage and new national living wage. Read story

One in four employees access work emails outside contracted hours
WSB: Over a quarter (28%) of employees feel compelled to check work emails while on holiday or at weekends. Read story

Jury to rule on employee status of FedEx drivers
Employee Benefits: A US district court in St Louis, Missouri, has referred a dispute over the employee status of FedEx drivers to a jury for deliberation. Read story

For £300bn, what would the Chancellor not do to the pensions system
Corporate Adviser: Can the Chancellor really resist a £300bn pensions tax relief windfall by switching to TEE? John Greenwood investigates. Read story

State pension age set to hit 70 by 2050
Money Marketing: An increase in the state pension age to 70 is “inevitable” after figures from the Office for National Statistics revealed a sharp rise in life expectancy. Read story

Boost to NMW enforcement
Pay and Benefits: Enforcement of the national minimum wage (NMW) has been taken a step further with the launch of an HMRC compliance team. Read story

Most employers say implementation of drawdown pensions is 'too difficult’
HR Magazine: The majority of employers (69%) believe the implementation and management of drawdown pensions is too difficult. Read story

Ombudsman case raises concern over transfer delays
Professional Pensions: Trustees have been warned they could be penalised for taking more than a month to complete transfers after The Pensions Ombudsman upheld a complaint against Optimum Capital Ltd. Read story

Newham mayor overrules council committee to push ahead with SPV spending
Professional Pensions: Up to £500,000 of public funds will be spent on setting up special purpose vehicle (SPV) for Newham Pension Fund despite the council’s oversight and scrutiny committee (OSC) calling for the project to be shelved. Read story

HSBC says charge cap no bar to active management
Professional Pensions: The 0.75% charge cap on auto-enrolment default funds does not prevent investors from using active management in volatile sectors where it can add value, says HSBC Global Asset Management. Read story

NHS to launch £5m health and wellbeing programme
Employee Benefits: The National Health Service (NHS) is launching a new £5 million health and wellbeing initiative for its 1.3 million health service staff. Read story

Alpha LSG incentivises employee engagement through gift card scheme
WSB: Exclusive - Alpha LSG has begun trialling a gift card scheme to encourage increased security awareness across its workplace. Read story

Why walking clubs and sit-stand desks work
WSB: Two major research projects have found a significant impact of being active at work. Read story

Cyclists most likely to arrive at work ‘refreshed’
Cover Magazine: Cyclists are the most likely to commuter to arrive feeling refreshed after their commute, a survey for Aviva has found. Read story

High stakes for Osborne and pensions industry
Corporate Adviser: While it is among the greenest of green papers, the consultation on restructuring incentives to save in pensions is surely one of the most important Chancellor George Osborne will have to ponder. Read story

TPR reveals how legal action secured £37m funding settlement for DLR scheme
Professional Pensions: The Pensions Regulator (TPR) has published details of the how trustees of the Docklands Light Railway (DLR) scheme took their case to the courts to secure a £37m recovery plan. Read story

Mercer unveils shared parental leave for UK workforce
WSB: Mercer is offering enhanced maternity pay as part of alterations to its shared parental leave policy. Read story

How employers’ unsympathetic attitudes towards staff absence affect staff productivity
WSB: Almost a quarter (23%) of employees would not tell their boss the true reason for being absent from work because they are afraid of being judged. Read story

Zero-hours contracts used by employers rise by 6%
WSB: The number of zero-hour contracts used by businesses has increased by 6% in the last year. Read story

43% plan to offer pension drawdown option
Employee Benefits: Less than half (43%) of respondents plan to offer a drawdown option as part of their pension plan, according to research by Towers Watson’s UK DC master trust, LifeSight. Read story

Cancer accounts for 29% of long-term sickness claims
Employee Benefits: Cancer and mental health issues accounted for 47% of income protection claims paid over the last year, according to research by Unum. Read story

Majority of employers don’t consider elective surgery a reason for absence
Cover Magazine: Elective surgeries such as knee replacement operations and cataract surgery are seen as a valid reason for being absent from work by only 35% of employers, research for AXA PPP has found. Read story

Top tips for increasing employees’ pension contributions
Employee Benefits: Getting staff to save is just the first step. Contribution levels also have to be right if individuals are to achieve the lifestyle they want in retirement. Read story

Peel Ports Group raises contributions with communication
Employee Benefits: Peel Ports Group raises awareness of pension contributions among staff by increasing its matching contributions and using specific communications. Read story