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18 Dec 2015
by Rebecca Patton

At a glance: reward and benefits headlines this week between 11-17 December 2015

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 11-17 December

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Employers doubling number of bonuses
HR Magazine: An annual study of 2,000 UK workplaces reveals a 112% increase in the number of employees due to receive a bonus. Read story

Council employees receive two-year pay rise offer
Employee Benefits: Council employees have been offered a 2% pay increase over two years starting from April 2016. Read story

Capita to acquire Work Group’s consultancy and resourcing operations
Employee Benefits: Capita is to acquire the resourcing and consultancy operations of Work Group through a trade and assets deal. Read story

Just 24% are happy with their benefits package
Employee Benefits: Less than a quarter (24%) of respondents are happy with their workplace benefits package, according to research by health and wellbeing provider Benenden. Read story

Pensioners now have greater wealth than under-45s
WSB: Households headed by someone aged between 65 and 74 now hold more wealth on average than those aged 16 to 44, according to research by the Resolution Foundation. Read story

What does IPT mean for the future of cash plans?
Cover Magazine: Health Shield's Jonathon Burton asks what the insurance premium tax (IPT) increase means for private health solutions such as cash plans. Read story

EDF Energy consults on opening defined benefit pension scheme to new members
Employee Benefits: New employees at EDF Energy would be given access to its defined benefit (DB) pension scheme through a proposed deal negotiated with trade unions. Read story

42% believe pensions will become a less important part of benefits
Employee Benefits: Some 42% of respondents believe that pensions will form a less significant part of benefits in the future, according to research by Aon Hewitt. Read story

10.2m were active members of a workplace pension scheme in 2014
Employee Benefits: There were 10.2 million active members in workplace pension schemes in the UK in 2014, according to research by the Office for National Statistics (ONS). Read story

TPR urged to tweak trustee remit for 600 schemes that will ‘never’ pay full benefits
Professional Pensions: The Pensions Institute has called for urgent action after its research found one in ten defined benefit (DB) schemes would "never ever" pay benefits in full. Read story

Work and Pensions Committee launches new AE inquiry
Professional Pensions: The Work and Pensions Committee has launched an inquiry into pensions automatic enrolment (AE). Read story

FTSE 100 DB scheme closure gathers pace
Professional Pensions: The rate of defined benefit (DB) scheme closure among FTSE 100 companies is gathering pace, according to research by JLT Employee Benefits. Read story

Trustees say poor data will hinder GMP reconciliation
Professional Pensions: Poor quality data will hamper the ability of schemes to deal with guaranteed minimum pension (GMP) reconciliations and increase costs, according to research from Aon Hewitt. Read story

1,000 DB schemes ‘to go bust’ – Pensions Institute
Corporate Adviser: Up to 1,000 defined benefit schemes are at serious risk of falling into the Pension Protection Fund, most of which will leave members receiving only PPF compensation says the Pensions Institute. Read story

Commission and holiday pay case heard by the Employment Appeal Tribunal
CIPD: An answer in the long running saga on whether commission should be included in holiday pay came a step closer recently when the Employment Appeal Tribunal (EAT) heard an appeal in the case Lock v British Gas Trading. The judgment is expected early in 2016. Read story

Sickness absence – five essential factors
Reward Guide: Sickness absence and how it is managed in the workplace was the hot topic at Reward’s recent round table, in association with Canada Life. Our participants identified five key learnings. Read story

Scapa saves £600k through flexible retirement exercise
Pensions Expert: Adhesive tape manufacturer Scapa Group has saved around £600,000 by offering flexible retirement options to some deferred members of its defined benefit scheme, clearing more than £10m of liabilities. Read story

How to maximise CSR policies through benefits
Employee Benefits: Employers take corporate social responsibility (CSR) policies seriously, and employees are also increasingly looking to the sustainability, value and impact that the businesses they work for have on the wider world. Read story

Astellas reflects CSR policy through charitable giving
Employee Benefits: Astellas promotes its corporate social responsibility (CSR) policy by offering its 400 staff the opportunity to donate money to charity as they earn and volunteer for community projects. Read story

Ethel Maldonado: Volunteering brings CSR policies to life
Employee Benefits: Corporate Social Responsibility (CSR) policies too often sit on a website, poorly communicated, rarely visited and even more rarely understood by employees. So what can really bring them to life? Read story

Capita’s Atlas master trust gains PQM Ready standard
Professional Pensions: Atlas is the latest master trust to be awarded the Pension Quality Mark (PQM) Ready standard. Read story

National Grid extends living wage commitment to apprentices and interns
Employee Benefits: National Grid has extended its living wage commitment by paying the voluntary rate to its apprentices, interns and graduates. Read story

Government confirms secondary annuity market will not extend to workplace pensions
Employee Benefits: The government has confirmed that the secondary annuity market will not extend to defined benefit (DB) workplace pension schemes. Read story

20% save more into pension as a result of pension freedoms
Employee Benefits: A fifth (20%) of respondents are saving more into their pension as a direct result of the pension freedoms, according to research by Aegon. Read story

Employers hope for stability in 2016
WSB: Employers are wishing for a peaceful New Year with no regulatory upheaval. Read story

DB Schenker holds eyecare awareness week for staff
Employee Benefits: Logistics firm DB Schenker hosted an eyecare and road safety awareness week for its UK staff. Read story

Government to maintain auto-enrolment earnings trigger for pensions
Employee Benefits: The government is to maintain the current auto-enrolment earnings trigger for workplace pensions into 2016-2017. Read story

Three quarters of employers concerned about carers benefits in 2016
WSB: An overwhelming majority (73%) felt either moderately concerned or very concerned about supporting employees with carer responsibilities. Read story

Employers largely unaware of Fit for Work service launch
WSB: Few employers have been made officially aware of the availability of Fit for Work (FfW) according to new research. Read story

Webb warns on annuity benefits minefield
Corporate Adviser: Retirees on benefits who sell their annuity need to fully understand the DWP will treat them as if they continue to receive the income from it warns former pensions minister Steve Webb. Read story

Treasury annuity resale market response raises more questions
Corporate Adviser: Providers will be able to buy back annuities from five million Britons holding the products under proposals published by the Treasury today, but they could lose 20 per cent of their value in the process warn experts. Read story

DWP warns on net pay schemes as earnings trigger frozen
Corporate Adviser: The government has warned small and micro employers that employees not paying tax will see more deducted from their pay packet if they use a net pay scheme for auto-enrolment. Read story

Government to launch secondary annuity market in April 2017
Professional Pensions: People drawing retirement income from annuities will be able to sell their contracts from 6 April 2017, the government has confirmed. Read story

Pay growth could slow to less than 1 per cent in real terms by end of 2016, warns think tank
CIPD: Employees expecting a return to strong wage growth during 2016 are likely to be disappointed, according to analysis from the Resolution Foundation think tank (RF). Read story

UK saving rates increase but nine in ten set to miss retirement income targets
Professional Pensions: More people are on track with saving for retirement than at any point in the last two years, but the vast majority are still not putting away enough, research finds. Read story

Penalties to be doubled for flouting national living wage: legislation published
Personnel Today: The Government has now published the legislation that brings into force the new national living wage next year. Read story

What does US rate rise signal for pension schemes?
Professional Pensions: The Federal Reserve’s landmark decision to raise interest rates for the first time in almost a decade paves the way for the UK to follow suit. PP looks at what could be in store for schemes. Read story

£150m scheme completes top-sliced medically underwritten buy-in
Professional Pensions: The £150m Institution of Engineering and Technology (“IET”) Superannuation and Assurance Scheme has completed a £32m medically underwritten buy-in. Read story

Government to publish monthly Pension Wise statistics
Professional Pensions: Pension Wise statistics will be updated on a monthly basis by the government according to the Treasury’s economic secretary Harriett Baldwin. Read story

Female managers over 40 paid 35 per cent less than male peers, finds survey

CIPD: Less than four weeks after ONS data revealed the gender pay gap stood at 9.4 per cent, research from the Chartered Management Institute (CMI) shows the gap widens as women rise up through the ranks. Read story

Cancer Research UK outsources company cars
Employee Benefits: Charity Cancer Research UK has outsourced its company cars to control costs, introduce fleet best practice and reduce administration. Read story

Total pay increases by 2.4%
Employee Benefits: Total pay, including bonuses, for employees in Great Britain increased by 2.4% between August and October 2015, according to the latest figures from the Office for National Statistics (ONS). Read story

57% have experienced a mental health issue
Employee Benefits: More than half (57%) of employees have experienced a mental health problem while in employment, according to research by Canada Life Group Insurance. Read story

Majority of UK employees experience mental health problem
Corporate Adviser: More than half of UK employees have experienced a mental health problem, with depression and stress the most common mental health issues for workers, according to new research. Read story

Herbert Smith Freehills supports mental wellbeing through mentor network
Employee Benefits: In May 2015, Herbert Smith Freehills launched a mental health mentor programme to support the 2,000 employees at its London office and the 250 members of staff based at its Belfast location. Read story

Politicians set their sights on advice gap
Money Marketing: 2015 is likely to be remembered as a year of surprise when it comes to politics. But it was not just the election of David Cameron’s Conservative party as a majority Government that proved unpredictable. Read story

Chris Woolard interview: FCA strategy chief on drawdown charges, safe harbours and advice costs
Money Marketing: The FCA has set its sights firmly on the drawdown market in the wake of the pension freedoms and warns it expects prices to drop as the product becomes mass market. Read story