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02 Oct 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 25 September-1 October

Fifth of organisations in ‘survivor mode’ and unable to invest in productivity
CIPD: Many employers also unprepared for introduction of National Living Wage, CIPD warns. Read story

Starbucks to pay national living wage to all staff
Employee Benefits: Starbucks is to pay all of its employees the government’s national living wage, including those under the age of 25. It is also introducing a rental deposit loan scheme to help staff tackle the cost of living. Read story

IBM and BT proactively support mental health
Employee Benefits: echnology firm IBM takes a well-rounded, holistic approach to employee health and wellbeing, which is enabled by ensuring that all elements of its support strategy are not conducted in silos. Read story

Novartis uses total reward to retain talent
Employee Benefits: Novartis Oncology is using its approach to total reward to support its transition from a highly performance-driven culture to a more collaborative environment. Read story

34% offer separate work-life balance programmes
Employee Benefits: Around a third (34%) of respondents offer standalone work-life balance programmes for employees, according to research by Britain’s Healthiest Company. Read story

Life expectancy increases slow dramatically
Professional Pensions: Increases in life expectancy have slowed significantly over the last four years according to the Institute and Faculty of Actuaries' Continuous Mortality Investigation (CMI). Read story

Top execs get pension contributions worth third of salary
Professional Pensions: Executives at blue chip companies had average employer contributions worth 34.1% of salary last year, according to the Trades Union Congress (TUC). Read story

NAPF names Johnson and Butcher as council chairs
Professional Pensions: The National Association of Pension Funds (NAPF) has appointed Frank Johnson as chair of its defined benefit (DB) council, and Richard Butcher as chair of its defined contribution (DC) council. Read story

Royal Mail introduces separation support service
Employee Benefits: Royal Mail has introduced a new pilot scheme to support the wellbeing of employees who are separating from their spouses. Read story

Consumer Electronics Association recognised for work-life balance support
Employee Benefits: The US-based Consumer Electronics Association (CEA) has been recognised for its commitment to helping staff achieve a healthy work-life balance. Read story

UK median gender pay gap higher than EU average
Employee Benefits: he gender pay gap stands at 19.1% in the UK in terms of median pay rates for all employees (full-time and part-time), higher than the EU 2014 average of 16.4%. Read story

Surrey County Council doubles benefits spend and projects £3.6m savings
WSB: Surrey County Council is expecting participation in its salary sacrifice car scheme to double the initial target.

Government must incentivise employers to invest in workforce health
WSB: The government should incentivise employers to engage people with long-term health conditions who are able to work, the Work Foundation recommends.

Smiths Group claws back deficit after 8-year fight
Pensions Expert: Technology and engineering conglomerate Smiths Group has reported a significant improvement in the funding position of its defined benefit pension schemes after pursuing a stringent eight-year derisking campaign. Read story

What are the latest trends in default investment strategies?
Employee Benefits: The pension freedoms, which came into effect in April 2015, have been seen as an opportunity for employers to re-evaluate their default investment strategies. Read story

Cancer Research UK diversifies default fund
Employee Benefits: Cancer Research UK (CRUK) replaced its equity-based default investment fund with a more diversified, less traditional option following the introduction of April’s pension flexibilities. Read story

Rob Barrett: Pension schemes must meet new freedoms
Employee Benefits: Since the government pension reforms in April, many pension providers have been reviewing their default funds. They have looked at whether their products will continue to meet the needs of their investors, and whether they are providing what people are looking for in the new environment. Read story

'Isa Warehouse' for pension, LTC, savings and homes mulled by Treasury
Corporate Adviser: A new ‘Isa Warehouse’ structure combining pension, long term savings, long term care and help to buy products under a single annual contribution allowance is under serious consideration by the Treasury, Corporate Adviser understands. Read story

Labour pension shadow uses first appearance to back freedoms
Corporate Adviser: Labour’s new shadow pension minister has called for greater advice and guidance from Pension Wise, arguing it is the government’s obligation to ensure more people get advice because it has opened up the pension mark. Read story

HMRC delays pension protection applications
Money Marketing: Pension savers who want to be apply for transitional protection as the lifetime allowance on pensions drops to £1m will have to wait for at least seven months, HMRC has confirmed. Read story

Government urged to cap tax relief on pension contributions
Professional Pensions: The government should cap the rate of tax relief high earners can claim on pension contributions rather than introduce a flat rate across all income bands, says Hymans Robertson. Read story

Public sector payoff cap will ramp up complexity for burdened LGPS
Professional Pensions: The government’s proposed cap on redundancy payoffs in the public sector would require complex changes to the Local Government Pension Scheme (LGPS) regulations, the industry has warned. Read story

Pension minister has 'sympathy' but no solution for female retirees
Professional Pensions: Pensions Minister Baroness Altmann has said she looked into helping women affected by having the start date of their state pension put back twice, but could not find a way to do so. Read story

Top execs get pension contributions worth third of salary
WSB: Executives at blue chip companies received average employer pension contributions worth 34.1% of salary last year. Read story

Engine Group raises awareness via benefits fairs
Employee Benefits: Engine Group held a selection of employee benefits fairs earlier this month to coincide with its annual flexible benefits window. Read story

Pera Consulting boosts engagement with benefits platform
Employee Benefits: Management consultancy Pera Consulting has seen an increase in employee engagement with benefits following the launch of a combined flexible benefits and pension platform. Read story

Osborne’s next pensions gamble: Govt eyes ‘big bang’ switch to pensions as Isas
Money Marketing: Chancellor George Osborne’s bold plans for pension tax relief reform could be coming unstuck as new hurdles appear to block pensions as Isa reforms. Read story

EAT rules on pay and holiday pay arrears
Employee Benefits: The Employment Appeal Tribunal (EAT) has dismissed an individual’s appeal for pay and holiday pay arrears for his time working as an on-call night worker. Read story

93% say employers should publish gender pay gap data
Employee Benefits: Almost all (93%) of respondents believe that employers should have to publish the overall gender pay gap within an organisation, according to research by Business in the Community. Read story

How smaller schemes can flex their shareholder muscles
Pensions Expert: Pension scheme trustees have long faced criticism for a lack of stewardship over their investments. Read story

Universal Music sees 18% absence reduction with video GP service
WSB: A private video GP service has been launched for employers to make remote consultations available to their workforce. Read story

WSB Research Forum: IPT rise pushes one in five employers to consider alternatives to PMI
WSB: An overwhelming number of respondents (71%) said the chancellor’s move to increase insurance premium tax (IPT) would not make them consider alternatives to private medical insurance (PMI). Read story

Healthy workplace food improves heart health
WSB: Offering healthy eating options in the workplace has the biggest impact on employee heart health. Read story

Morrisons to raise pay for store staff
Employee Benefits: The pay rise will apply to store-based staff of all ages, benefiting over 90,000 employees. Read story

Asons Solicitors offers incentives to motivate staff
Employee Benefits: Asons Solicitors has given its 200 members of staff incentives and prizes such as a football-themed casual dress day, gifts and a raffle. Read story

67% say Isa system would lower staff pension savings
Employee Benefits: Two-thirds (67%) of respondents believe an individual savings account (Isa)-style tax system for pensions would result in a reduction in the amount employees save into their pension, according to research by insurance provider Aviva. Read story

15% see tax-free pension contributions as incentive to save
Employee Benefits: Just 15% of respondents view tax-free pension contributions as an incentive to save, according to research by PricewaterhouseCoopers (PWC). Read story

Employment law changes October 2015: a six-point checklist
Personnel Today: Fiona Cuming sets out six employment law changes employers need to prepare for this autumn. Read story

Easyjet cabin crew will receive commission in holiday pay
Personnel Today: Easyjet has become the first airline to compensate staff for underpayment of holiday pay following the landmark British Gas v Lock case earlier this year. Read story

The latest trends in voluntary benefits
Employee Benefits: Voluntary benefits have been steadily gaining popularity over the last decade or so and most employers recognise that they can boost morale, engagement and retention by offering a selection of optional perks. Read story

Experian refreshes voluntary benefits scheme
Employee Benefits: Experian based its voluntary benefits offering on employee feedback when it relaunched the first phase of its scheme in March 2014. Read story

Zoe Spicer: Voluntary benefits need to reflect employees’ complex lives
Employee Benefits: Employees’ lives are as complicated as ever, coupled with an increasing need to attract and retain top talent. So HR professionals need to stay ahead of the competition when it comes to pay and benefits: the employee value proposition. Read story

Share schemes tax-relief tops £1bn as SIP values soar
WSB: The number of companies offering tax-advantaged share schemes has doubled since 2000 but plans open to all employees have dipped to their lowest level during the period. Read story

DWP unveils toolkit to help employers manage ageing workforce
WSB: The Department for Work and Pensions has announced the launch of a toolkit to help employers manage an ageing workforce as part of Older Peoples Day. Read story

Minimum wage earners set to double as increases kick-in
WSB: The proportion of employees earning the legal minimum wage could double over the next five years as the national minimum wage (NMW) increase comes into effect. Read story

FCA overhauls at-retirement rules after major pension reforms
Professional Pensions: The Financial Conduct Authority (FCA) has revamped its at-retirement rules as a result of pensions freedom and choice reforms which opened up the retirement income market. Read story

Warning providers' maximum pension projection rates too high
Professional Pensions: The Financial Conduct Authority (FCA) has said it is concerned providers' projections of what pension savers can expect to receive in retirement if they buy certain products are too high, and it wants to standardise the process. Read story

Market volatility pushes pension deficits up £40bn
Professional Pensions: Deficits in defined benefit (DB) schemes have deteriorated over the last 12 months due to low gilt yields and market volatility over the summer, according to JLT Employee Benefits. Read story

Costa increases barista pay
Employee Benefits: Baristas at Costa-owned stores will now be paid a minimum of £7.40 an hour, and £7.20 prior to the completion of their training period. Read story

Half of staff attitudes would change if offered share plans
Employee Benefits: Half (50%) of respondents say their attitude towards their employer would change if they were part of an employee share scheme, according to research by Equiniti Employee Services. Read story

67% of over 55s say their line manager cares about staff wellbeing
Employee Benefits: Some 67% of UK respondents aged 55 and over believe that their line manager genuinely cares about employee wellbeing, according to research by Edenred. Read story

FCA mulls annuity commission ban and £10k threshold for pot guidance
Corporate Adviser: Commission on annuities could be abolished and pension pots of £10,000 or less will not be subject to the second line of defence regulations under proposals unveiled today by the FCA designed to address the risks and challenges faced by consumers in the new retirement market. Read story

National living wage 'could divide young talent', says shadow minister
CIPD: The government’s compulsory national living wage (NLW) has the potential to “pit” workers against each other, Owen Smith, shadow secretary of state for work and pensions, has warned. Read story