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20 May 2016
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 13-20 May

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Employers lacking cancer carer policy – Axa PPP
Corporate Adviser: Half of managers say their company doesn’t have a formal policy for employees caring for close family members or dependents diagnosed with cancer. Read story

New Pensions Bill this week demands DWP committee
Corporate Adviser: The work and pensions select committee is piling the pressure on the Government to announce a Pensions Bill in the Queen’s Speech on Wednesday, with a report that calls for more safeguards against ‘unstable master trusts’. Read story

Just 3pc of employers see advisers as responsible for financial education
Corporate Adviser: Just 3 per cent of employers believe financial advisers are responsible for delivering financial education to their employees, ranking way behind the Government, pension providers, employers and even employees themselves, a new survey has found. Read story

MPs warn on Lifetime Isa threat to auto-enrolment
Money Marketing: Employees who have been automatically enrolled should be warned away from the Government’s new Lifetime Isa, according to a committee of MPs. Read story

Steve Webb urges Govt to progress pensions dashboard
Money Marketing: Former pensions minister Steve Webb has called on the Government to take a stronger role in the development of a pensions dashboard, warning the project risks being left “in the slow lane”. Read story

38% feel work has a negative impact on their mental health
Employee Benefits: Over a third (38%) of respondents feel their working environment has a negative effect on their mental wellbeing, according to research by Westfield Health. Read story

Median pay expected to increase by 1.7%
Employee Benefits: A median pay increase of 1.7% is expected between March 2016 and March 2017, according to research by The Chartered Institute of Personnel and Development (CIPD). Read story

The mounting controversy around BHS
Professional Pensions: The tale of BHS has taken a dramatic turn after the first Work and Pensions Committee hearings into the retail giant. PP looks at what has happened in the past week. Read story

Can UK pensions be made fairer?
Professional Pensions: The freedom and choice agenda has shaken up pensions but there are concerns it is increasing inequality. Michael Klimes finds out why. Read story

Things employees shouldn’t do with their pension
Reward Guide: Wealth At Work looks at some examples of bad practice in pension choices. Read story

Chinese company boss treats employees to Spain holiday
Reward Guide: The owner of Tiens Group treated 2,500 employees to a holiday in Spain. Read story 

Effect of living wage ‘is slowing salary growth’
People Management: Pay rises will average just 1.7 per cent this year as employers struggle with costs, says CIPD Labour Market Outlook. Read story

TPR says ‘majority’ of employers now able to maintain or increase contributions
Professional Pensions: The Pensions Regulator’s (TPR) annual funding statement has discovered most employers will be able to keep or raise deficit contribution levels given their increased profitability. Read story

Risks to DB benefits ‘should be communicated' to members
Professional Pensions: Defined benefit (DB) scheme members need to be made more aware of the risks to their benefits according to the Pensions and Lifetime Savings Association's Ashok Gupta. Read story

Aon Retirement Plan completes £900m buy-in
Professional Pensions: The trustees of the Aon Retirement Plan have concluded a buy-in with Pension Insurance Corporation (PIC) for around a third of the £3bn-4bn scheme. Read story

Rolls Royce Group named UK’s most attractive large employer
Employee Benefits: Rolls Royce Group has been named the large organisation UK employees would most like to work for in the Global Randstad Award 2016. Read story

Select committee joins call for mastertrust regulation
Pensions Expert: The government should introduce solvency legislation for mastertrusts to protect savers from the risk of collapse, experts have said, as the Department for Work and Pensions select committee warns of the risks to auto-enrolment. Read story

We need master trust regulation
Professional Pensions: Is now the time for regulation of the master trust market? Helen Morrissey hopes so. Read story

Police Mutual engages staff with loan offering
Employee Benefits: Police Mutual, an organisation that offers financial services to police and military employees and their families, gives its 500 employees access to competitive loans through Neyber, a service where monthly repayments are deducted straight from their pay packet. Read story

More support needed for older workers and working carers
HR Magazine: Employers need to step up support to retain valuable older workers and working carers. Read story

Lloyds Banking Group employees take part in volunteering initiative
Employee Benefits: Lloyds Banking Group is supporting employee volunteering, with more than 5,000 staff members taking part in the 2016 Give and Gain initiative. Read story

32% do not feel supported when family is affected by cancer
Employee Benefits: Just under a third (32%) of employee respondents do not feel supported by their employer when a loved one is diagnosed with cancer, according to research by Axa PPP Healthcare. Read story

30% of group income protection claims due to mental health issues
Employee Benefits: Mental health issues accounted for 30% of group income protection claims in 2015, according to Legal and General. Read story

Secretary of state LGPS powers will be used ‘sparingly’
Professional Pensions: The secretary of state’s powers to intervene in the local government pension scheme (LGPS) will only be used where justified, according to the local government minister. Read story

Only 3% of large DB schemes open to new members
Professional Pensions: Only 3% of final salary defined benefit (DB) schemes with assets of over £1bn are now open to new members according to Barnett Waddingham. Read story

NEST enrols over 100,000 employers
Professional Pensions: More than 100,000 employers and over three million members have been auto-enrolled into the National Employment Savings Trust (NEST). Read story

DB liabilities could change by £70bn due to Brexit
Professional Pensions: A shift in longer dated gilt yields of 0.3% triggered by a Brexit could change defined benefit (DB) liabilities by £70bn according to the Society of Pension Professionals (SPP). Read story

Payroll mistakes cost businesses more than £700m
People Management: HMRC clamping down on individuals wrongly classified as self-employed, with SMEs hit particularly hard. Read story

BHS scheme advisers and lawyers summoned to give evidence as part of parliamentary inquiries
Professional Pensions: The advisers to both the BHS pension schemes and Arcadia are among those who have been summoned to give evidence to the parliamentary committees investigating the collapse of BHS. Read story

Queen's Speech 2016: Pensions Bill to toughen master trust regulation
Professional Pensions: A new Pensions Bill will strengthen master trust regulation and give The Pensions Regulator increased powers to police these schemes. Read story

Queen's Speech 2016: Bill to cap exit fees on trust-based schemes
Professional Pensions: The new pensions bill will cap early exit fees charged by trust-based occupational schemes in a bid to remove "unreasonable barriers" to accessing pension freedoms. Read story

Govt hands TPR new powers in master trust clampdown
Money Marketing: The Government is acting to protect millions of auto-enrolment savers through new standards for master trusts and greater powers for the Pensions Regulator. Read story

Lifetime Isa and auto-enrolment excluded from Pension Wise
Money Marketing: Pension Wise appointments will not include information on the Government’s new flagship product the Lifetime Isa or automatic enrolment, Money Marketing can reveal. Read story

Chiswick Park launches lunch hour summer events programme
Employee Benefits: Chiswick Park Enjoy-Work is kicking off its annual summer events programme for employees of the 45 organisations on site, including Aker Solutions, Discovery, PepsiCo, and Starbucks. Read story

32% who opt out of workplace pension blame financial constraints
Employee Benefits: Around a third (32%) of employee respondents cite financial constraints as the key reason for choosing not to pay into their workplace pension, according to research by Aviva. Read story

40% feel let down by lack of access to financial advice
Employee Benefits: Four in ten (40%) respondents feel let down if their employer fails to support them with access to advice on their pensions and future finances, according to research by online pension advice provider Wealth Wizards. Read story

The gender pay gap: Firms are looking in the wrong place
HR Magazine: The gender pay gap is down largely to women making up a very small percentage of executive positions. Read story

Lyft offers $27m settlement in Californian employee status case
Employee Benefits: Taxi platform Lyft has reached an updated settlement agreement in a class action case disputing the status of drivers in California. Read story

Five key messages to communicate around pensions re-auto-enrolment
Employee Benefits: Explain the change early, highlight what those employees are outside of the scheme have been missing out on but make it clear they can stay opted out, although they must actively say so. Read story

The human psychology behind pension communications
Pensions Expert: A powerful human motive previously unrecognised by social and behavioural scientists has been identified and modelled by researchers from Carnegie Mellon University and Warwick Business School: the drive to make sense of our world. Read story

Webb slams lack of DB protection in Pensions Bill
Corporate Adviser: The Pensions Bill unveiled in today’s Queen’s Speech has been branded ‘disappointing’ by former minister Steve Webb for ignoring big issues such as oversight of DB scheme deficits, increasing contributions beyond 8 per cent and getting the self-employed saving. Read story

Bring Workplace Isa into AE to stop Lisa risk – Johnson
Corporate Adviser: The Government should include a Workplace Isa within auto-enrolment legislation to eliminate the risk of the Lifetime Isa impacting the rollout of the policy says Michael Johnson. Read story

L&G master trust gains TPR kitemark
Corporate Adviser: Legal & General has gained master trust assurance framework accreditation for its WorkSave Mastertrust, becoming the 10th scheme to achieve the kitemark. Read story

Employers lacking cancer carer policy – Axa PPP
Corporate Adviser: Half of managers say their company doesn’t have a formal policy for employees caring for close family members or dependents diagnosed with cancer. Read story

Changing of the guard: Is TPR up to the job of regulating pensions?
Money Marketing: The collapse of British Home Stores and the impact of the pension freedoms agenda has reignited calls for The Pensions Regulator to be scrapped and sub-sumed by the FCA. Read story

Royal London calls on TPR to expand approved auto-enrol list
Money Marketing: Royal London is calling on The Pensions Regulator to loosen the criteria for entries to its new list of group personal pension schemes for automatic enrolment. Read story

Gerald Eve gains living wage accreditation
Employee Benefits: Gerald Eve has been accredited as a living wage employer by the Living Wage Foundation. Read story

Government to legislate for increased master trust protections
Employee Benefits: The government is to introduce additional measures to protect members of master trust pension schemes through a new Pensions Bill. Read story

Total pay increases by 1.7%
Employee Benefits: Total pay in Britain, including bonuses, increased by 1.7% between January-March 2015 and January-March 2016, according to research by the Office for National Statistics (ONS). Read story

Pensions Bill 2016: three key concerns
Reward Guide: What were the main provisions of the latest Pensions Bill? Read story

What impact has the charge cap had?
Professional Pensions: When the DC charge cap was introduced last year it was meant to safeguard value for money. However, Charlotte Moore finds this isn’t necessarily the case. Read story

Plans to axe fixed recovery plans for energy sector hailed sensible
Professional Pensions: The planned removal of the 15-year recovery plan end date for defined benefit (DB) schemes run by energy network operators has been welcomed. Read story

McPhail: transfer pensions in seven days like bank accounts
Professional Pensions: Pension transfers should take no more than seven days between providers according to Tom McPhail. Read story

£1 today or £1.32 in 30 years time? The Lisa in a pension question
Corporate Adviser: For those versed in the behavioural psychology concept of hyperbolic discounting, that is the question facing young people pondering whether to access what would have been five eighths of their pension, says Corporate Adviser editor John Greenwood. Read story

Industry welcomes stricter rules for pensions ‘master trusts’
People Management: Cap on early exit fees for trust-based schemes and new financial advice for employees unveiled in Queen’s Speech. Read story

UK lags behind EU neighbours on workplace gender equality
People Management: British employers still have work to do in pay differentials and board-level representation, Glassdoor report reveals. Read story

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