At a glance: reward and benefits headlines this week 17-23 April 2020
The headlines you might have missed between 17-23 April 2020.
Furlough scheme prolonged until end of June
HR Review: The Treasury has announced that the UK’s Coronavirus Job Retention Scheme is to be extended from the end of May to the end of June, allowing staff to be on furlough for another month. Read story
Treasury extends RPI consultation period
Professional Pensions: The Treasury has announced a four-month extension to its consultation on reforming the Retail Prices Index (RPI) in response to the Covid-19 crisis. Read story
Freedom and Choice not designed for rash coronavirus-motivated withdrawals
Professional Pensions: Using the flexibility offered by pension freedoms to access pensions early without considering long-term consequences will leave savers struggling to make ends meet, the Association of British Insurers (ABI) has warned. Read story
Fifth of workers furloughed on average, ONS figures show
People Management: Experts say statistics demonstrate how vital the job retention scheme is, but call for more flexibility in the system as lockdown is extended by three weeks. Read story
Ashurst defers 50% of bonus payments for 2,800 employees
Employee Benefits: International law firm Ashurst will defer 50% of bonus payments for its 2,800 eligible employees until November 2020 to deal with the financial constraints of the Covid-19 (Coronavirus) pandemic. Read story
Rolls-Royce asks furloughed staff to swap four days leave to receive full pay
Employee Benefits: Furloughed employees at British engineering business Rolls-Royce have been asked to have their annual leave reduced by four days in return for receiving full pay. Read story
Barratt Developments, Carntyre Transport and North Air to furlough staff on full pay
Employee Benefits: Barratt Developments, North Air, and Carntyre Transport will all pay furloughed employees in full. Read story
TPR issues guidance on pension contributions in salary sacrifice arrangements
Pensions Age: The Pensions Regulator (TPR) has issued guidance to ‘large’ employers on pension contributions for employees who have agreed to a salary sacrifice arrangement. Read story
Employees worried about mental health due to remote working
HR Review: Now that the majority of people are working from home, it has been revealed that over a third are worried about their mental health with this figure rising for those who live alone. Read story
Coronavirus Job Retention Scheme where staff can be furloughed now live
HR Review: The Coronavirus Job Retention Scheme is now live where 80 per cent of staff’s wages that have been furloughed will be paid by the Government. Read story
Covid crisis: 500 firms to delay tackling pension deficits
Corporate Adviser: New analysis by consultants Lane Clark & Peacock (LCP) says the total payments now being deferred is expected to be around half a billion pounds. Read story
Premier Foods to merge three schemes
Professional Pensions: Premier Foods will merge its three defined benefit (DB) schemes to allow for redistribution of surplus funding in the event of a scheme buyout. Read story
Should the UK's lowest-paid workers be auto-enrolled in pensions?
Professional Pensions: Jon Dean looks at whether the AE system can be adapted to meet low earners’ needs and lower financial resilience. Read story
Fraser Smart: Seeking a nirvana for BA pension members
Professional Pensions: Technology is at the heart of BA Pensions’ drive to help members and it wants to share that with others. James Phillips speaks to BA Pensions chief executive Fraser Smart. Read story
Microsoft offers employees three months additional parental leave
Employee Benefits: American technology organisation Microsoft is offering extended leave benefits to all of its 150,000 employees who are working parents, to support them during the Covid-19 (Coronavirus) pandemic. Read story
Google increases its employee parental leave entitlement to 14 weeks
Employee Benefits: Technology organisation Google has extended its parental leave benefits worldwide, offering its 114,000 eligible employees additional support during the Covid-19 (Coronavirus) pandemic. Read story
Disney stops paying 100,000 staff
HR Grapevine: As of this week, the entertainment group Walt Disney will put more than 100,000 employees (almost half of its workforce) on unpaid leave as the firm struggles to cope with the financial downturn caused by coronavirus lockdown measures. Read story
Companies send gifts to staff to combat COVID-19 pressure
HR Review: Just over one-sixth of UK businesses have sent gifts to their staff, who they feel are under increasing pressure due to the lockdown brought on by COVID-19. Read story
James Coney: Crash test for pensions
Corporate Adviser: The economic crisis has revealed fault lines throughout the pensions system, says James Coney, money editor of The Sunday Times. Read story
Multibillion pension sponsors among vulnerable to demand shock
Pensions Expert: Sponsors of some of the UK’s largest defined benefit pension schemes are among those exposed to a potentially unsustainable level of debt if their cash flows dry up, new analysis has suggested. Read story
Arsenal Football Club to defer pay for first team players and coaching staff
Employee Benefits: Arsenal Football Club’s first-team players, the clubs head coach and core coaching staff, will take a temporary pay cut to financially deal with the critical effects of Covid-19 (Coronavirus), effective immediately. Read story
Shropshire Council reports 18.2% mean gender pay gap
Employee Benefits: Shropshire Council has reported a 18.2% mean gender pay gap for fixed hourly pay, as at 31 March 2019; the exact same pay gap from the reporting year 2018/2019. Read story
Grant Thornton reduces pay and hours for 300 employees
Employee Benefits: Accountancy firm Grant Thornton is reducing hours and pay for 300 employees during the Covid-19 (Coronavirus) pandemic. Read story
7 ways employers can support staff
HR Grapevine: Financial wellbeing has previously been considered a new area of wellbeing HR has started to invest in. Read story
Women’s state pension changes drive record winter employment levels
Pensions Age: State pension age changes for women has driven a 0.9 per cent year-on-year increase to the female employment rate, to a record 72.7 per cent. Read story
Govt publishes briefing paper on AE progress
Pensions Age: The House of Commons has published a briefing paper on the current state of auto-enrolment (AE) policy and its plans for reforms in 2020. Read story
Dads cannot afford to take SPL
HR Review: Two-fifths of dads cannot afford to take Shared Parental Leave (SPL), which some believe show the need for a policy change. Read story
HMRC pushed for clarification on Covid salary sacrifice
Corporate Adviser: Urgent clarification is needed from HMRC on how it intends to view people giving up salary during the COVID-19 crisis, says AJ Bell. Read story
The pensions impact of Covid-19 on company balance sheets
Professional Pensions: As the crisis drives up corporate bond yields, Phil Cuddeford explores the issues for scheme sponsors to consider when communicating their schemes’ accounting positions. Read story
Hard-hit DB valuations a sour note on three-year contribution gains
Professional Pensions: The actuarial valuations of at least a quarter of UK defined benefit (DB) pension schemes are likely to have been “badly impacted” by coronavirus-related disruption to markets, says Aon. Read story
Central England Co-op rewards 7,400 front-line employees with Covid-19 bonus
Employee Benefits: Central England Co-operative is to reward its 7,400 front-line employees with a bonus to thank them for their hard work during the Covid-19 (Coronavirus) pandemic. Read story
Foxtons asks employees earning over £40,000 to take 20% pay cut
Employee Benefits: Estate agent Foxtons is asking employees earning over £40,000 a year to take a 20% pay cut, due to the financial constraints of the Covid-19 (Coronavirus) pandemic. Read story
Reed Smith offers 1,500 employees three months unpaid leave
Employee Benefits: Law firm Reed Smith is introducing an unpaid leave scheme for its 1,500 employees to deal with the financial constraints of Covid-19 (Coronavirus). Read story
Employers set to face a 'holiday headache'
HR Grapevine: Recent statistics have found that more than seven in ten UK firms have furloughed staff, according to a British Chambers of Commerce survey, with its Business Impact Tracker finding that 71% have made the decision to furlough employees – which is up from 66% last week. Read story
40% of UK employers have no procedures in place to help workers who have money worries
Employer News: A recent survey undertaken by Howden Employee Benefits & Wellbeing (Howden) suggests that many employers have yet to establish a formal support structure to help workers who have persistent money worries. Read story
Maximise use of health and wellbeing benefits available at home, employers urged
Personnel Today: Organisations have been urged not to overlook the health and wellbeing benefits available for employees at home, with many providers adapting their services to ensure individuals can access support while working remotely. Read story
UK employees happy to remote work as long as necessary
HR Review: More than half of UK workers are happy to continue working from home as long as it is required in order to combat COVID-19. Read story
Glenn Thomas: Building a benefits business
Corporate Adviser: It is employee benefits, not general insurance that will benefit from the macro trends shaping modern society - that is why EBCs are in such high demand says Howden Employee Benefits and Wellbeing managing director Glenn Thomas. Read story
Pension tax changes for public workers lauded a fair choice
Professional Pensions: The government’s proposal of temporary changes to pension tax for public sector workers amid the Covid-19 pandemic is the fairest choice, says Royal London. Read story
50 firms drop DB transfer 'gold standard' after PI renewal problems
Professional Pensions: Around 50 advice firms have surrendered their pension transfer ‘gold standard’ status after running into issues renewing professional indemnity insurance (PII) on pension transfers, according to the Personal Finance Society (PFS). Read story
Half of schemes set to reach buyout by 2040; Demand to average £37bn annually over decade
Professional Pensions: The coronavirus pandemic is unlikely to curb pension scheme enthusiasm for buy-ins and buyouts, says Hymans Robertson. Read story
BA trustees disembark as destination comes into view
Pensions Expert: A British Airways defined benefit scheme is shrinking its trustee board size, due to decreased workload after a buy-in and successfully weathering the Covid-19 funding storm. Read story
NFP acquires employee benefits consultancy Johnson Fleming
Employee Benefits: New York insurance broker and consultant NFP has announced the acquisition of employee benefits service Johnson Fleming Group Limited and Johnson Fleming Future Life Planning Limited (Johnson Fleming). Read story
Clifford Chance defers partner bonuses and pay increases for 6,600 employees
Employee Benefits: International law firm Clifford Chance is taking several measures to deal with the ramifications of Covid-19 (Coronavirus) including deferring bonuses and delaying pay rises. Read story
1,500 Marriott casual workers to receive furlough pay
Employee Benefits: Hospitality organisation Marriott International is placing 1,500 casual employees at its Marriott hotels on the government’s Covid-19 (Coronavirus) job retention scheme. Read story
Boss gets £1m payout as 14,000 furloughed
HR Grapevine: Ousted John Lewis boss, Paula Nickolds, was given an almost £1million payout as 14,000 staff members have been furloughed under the Government’s Coronavirus Job Retention Scheme – Metro reported. Read story
Up to 1 in 10 employers requesting DRC suspensions - TPR
Pensions Age: Between 5 and 10 per cent of sponsoring employers have been requesting to suspend deficit recovery contributions (DRCs), according to The Pensions Regulator (TPR). Read story
Should employers be supporting their employees through divorce? And if so how?
HR News: 42% of marriages end in divorce. But most employers have no idea what they can, or should, do to help. Read story
Self-management and flexible working have never been more important
HR Magazine: In the last month or so, the working world has been completely upended for billions of people. Read story