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29 Feb 2016
by Liz Morrell

Video: REBA New Year Lectures: Reward and pensions directors must be ready to react post Budget

Potential pension taxation changes – the tax exempt exempt model - which could be unveiled in the March 2016 Budget could “fundamentally turn everything upside down”, according to John Chilman, group reward and pensions director at FirstGroup.

View the video of John Chilman’s session: “A rewards roadmap for 2016: In what direction are we heading?”

Speaking at the REBA New Year Lectures 2016 Chilman said he, like many others, faced uncertainty: “My whole year would be spent negotiating with unions and redesigning the pension plans to make these affordable – it’s a very challenging issue,” he said.

The potential scrapping of salary sacrifice could also have a huge impact on his priorities for 2016, Chilman explained. “We deliver so many of our benefits through salary sacrifice so if that is to be taken away that produces a massive challenge on how we resource that,” he said.

Chilman, who was the first speaker at the event, advised flexible diaries for 2016, saying that the two changes were just one of a number that could keep pension and reward directors busy post Budget. “We are living in more uncertainty. I’m waiting for the Budget because so much of my work could be driven by March 16 changes I need to be flexible enough to react,” he said.

Chilman also reviewed the highlights of 2015 for reward professionals describing the impact of April 2015’s Freedom and Choice introduction as “one of the dampest squibs in my organisation”. Whilst initial interest was high he said for FirstGroup at least not many employees took up the option.

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This video was filmed at the REBA New Year Lectures 2016. Read more about the REBA New Year Lectures 2016.

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