05 Aug 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 29 July - 4 August

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Graduates value culture over salary
HR Magazine: Graduates also report they are willing to complete an internship or work overtime during evenings or weekends, according to Accenture study. Read story

Keeping staff safe when lone working
HR Magazine: Yesterday marked 30 years since estate agent Suzy Lamplugh disappeared after leaving her office to meet an unknown client. So what can employers do to keep staff safe at external meetings? Read story

The Brexit effect on ex-pat state pensions
Money Marketing: 1.2 million Brits estimated to be living in other EU countries have been left with an unclear picture as to how the leave vote will impact their state pension income. Read story

Pensions Regulator issues extra £350k in auto-enrol fines
Money Marketing: The Pensions Regulator issued fixed penalty fines worth a total of £344,400 in fines against firms breaching auto-enrolment rules between April and June. Read story

B.Braun Medical holds employee wellbeing activity week
Employee Benefits: B.Braun Medical held a week-long bespoke activity event for staff, featuring sessions such as self-defence classes and relaxation techniques. Read story

Royal College of Nursing celebrates centenary with year-long staff activity programme
Employee Benefits: The Royal College of Nursing (RCN) is running a year-long programme of engagement activities for its staff to mark its 100th birthday, including a reward scheme, walks and runs, and a number of charity initiatives. Read story

Savers access £6.1bn through pension flexibilities
Employee Benefits: Savers have received flexible pension payments worth a total of more than £6.1 billion since the introduction of the pension flexibilities in April 2015, according to data from HM Revenue and Customs (HMRC). Read story

Number of over-65s in work doubles in 12 years
People Management: Employers urged to make the most of older workers; rate of employment for over-50s also highest on record. Read story

Living wage ‘must change’, says review
People Management: Call for new ways of calculating higher benchmark, following introduction of government-mandated national living wage. Read story

PPF compensation cap may not comply with EU law, says Court of Appeal
Professional Pensions: The Pension Protection Fund’s (PPF) compensation cap and restrictions on annual indexation increases could be at odds with EU law, according to a provisional judgement by the Court of Appeal. Read story

DC code attacked for ignoring low earners’ 20pc tax relief loss
Corporate Adviser: The Pensions Regulator’s new DC Code of Practice, which comes into effect today, has been attacked for failing to address the issue of low earners not receiving tax relief if they are automatically enrolled into net pay schemes. Read story

Arthur J Gallagher acquires Orb Financial Services
Employee Benefits: Arthur J Gallagher has acquired Surrey-based employee benefits organisation Orb Financial Services. Read story

37% increase in employees seeking work-related stress support
Employee Benefits: The number of calls concerning work-related stress that employees made to Canada Life Group Insurance’s employee assistance programme (EAP) service increased by more than a third (37%) year on year, according to research by Canada Life Group Insurance. Read story

79% of millennials believe benefits would make them more loyal to employer
Employee Benefits: More than three-quarters (79%) of millennial respondents believe that receiving benefits would make them more loyal to the organisation they work for, according to research by BrightHR. Read story

Court of Appeal ruling signals higher payouts from collapsed pension funds
Employee Benefits: The Pension Protection Fund could be forced to increase payments made to higher earners following a ruling by the Court of Appeal last week. Read story

DB liabilities climb by £100bn over July
Professional Pensions: Total deficits of UK defined benefit (DB) schemes have reached an all-time high for the sixth month in a row, according to JLT Employee Benefits. Read story

BHS: Our investigation must be robust, not hasty
Professional Pensions: Mark Boyle responds to comments made by MP Frank Field about the regulator’s investigation into the collapse of British Home Stores. Read story

Triple lock has ‘outlived its purpose’, says Altmann
Professional Pensions: The government should drop the ‘triple lock’ for state pensions as it will become unaffordable, former pensions minister Baroness Ros Altmann has said. Read story

Four ways to save DB
Professional Pensions: The industry has come up with various ways to solve the numerous challenges faced by DB schemes. Kristian Brunt-Seymour examines responses to the DB Taskforce's call for evidence. Read story

Almost half of employees ‘pessimistic’ after Brexit vote
People Management: CIPD survey suggests particular unease in public sector, as well as widespread job insecurity. Read story

‘Major reform’ on the cards to help cut pension burden
People Management: Government kicks off inquiry amid growing concerns over size of deficits; employers may be able to reduce future liabilities or change calculation methods, say reports. Read story

Lady Barbara Judge: We should make AE compulsory
Professional Pensions: The former chairwoman of the Pension Protection Fund (PPF) has called for the removal of the choice for employees to opt out of auto-enrolment (AE). Read story

Speculation over DB transfer ban could lead to ‘rush for the door’
Professional Pensions: Rumours about the government banning members from transferring their defined benefit (DB) pensions will only fuel the fire, the Association of Consulting Actuaries (ACA) has warned. Read story

New pensions minister commits to AE and master trusts
Professional Pensions: The new pensions minister Richard Harrington MP has committed to auto-enrolment (AE) and master trust regulation as he set out his priorities for the role. Read story

Trinity Mirror's DB deficit rises 40% in H1
Professional Pensions: Trinity Mirror Group's defined benefit (DB) pension deficit has increased by £120.8m to £426m in the past six months, driven by a fall in long-term interest rates. Read story

BBA Aviation closes DB scheme to future accrual
Professional Pensions: BBA Aviation has revealed it has closed its UK defined benefit (DB) scheme to future accrual, following a consultation with members. Read story

Freepoint Commodities boosts staff engagement with pensions
Employee Benefits: Commodity trading organisation Freepoint Commodities has seen 45% of UK employees who are members of its workplace pension scheme check their pensions online on a monthly basis since the launch of a new group pension and workplace savings platform in January 2016. Read story

31% are more concerned about their pension after Brexit vote
Employee Benefits: Just under a third (31%) of respondents are more concerned about their pension and retirement since the UK’s decision to leave the European Union (EU) in June’s referendum vote, according to research by Wealth Wizards. Read story

94% would promote staff without giving pay rise
Employee Benefits: The majority (94%) of senior finance executive respondents would give an employee a promotion without offering additional remuneration, according to research by Robert Half UK. Read story

Lendlease offers on-site cancer checks to staff
Employee Benefits: Property solutions organisation Lendlease has developed a wide-ranging health and wellbeing programme, tailoring the schemes offered to reflect the results gathered from staff surveys and employee health checks. Read story

Akshay Choudhry: Uber test case could disrupt UK’s burgeoning gig economy
Employee Benefits: In July, the Central London Employment Tribunal heard evidence concerning the employment status of two Uber drivers in a test case that could have a significant bearing on the rights of the tens of thousands of Uber drivers in the UK, and potentially countless others working in the UK’s growing ‘gig’ or ‘sharing’ economy. Read story

31% are more concerned about their pension after Brexit vote
Employee Benefits: Just under a third (31%) of respondents are more concerned about their pension and retirement since the UK’s decision to leave the European Union (EU) in June’s referendum vote, according to research by Wealth Wizards. Read story

Massachusetts introduces equal pay for comparable work law
Employee Benefits: The US state of Massachusetts is introducing a pay equality bill to ensure equal pay for comparable work for all employees. Read story

Pension deficits hit £139bn for FTSE 350 organisations
Employee Benefits: The accounting deficit of defined benefit (DB) pension schemes for the UK’s 350 largest listed organisations stood at £139 billion at the end of July 2016, compared to £119 billion at the end of June, according to research by Mercer. Read story

51% offer a car salary sacrifice scheme to boost staff morale
Employee Benefits: Just over half (51%) of employer respondents who offer a car salary sacrifice scheme to staff provide the benefit to raise employee morale, according to research by finance organisation Maxxia. Read story

Insolvency Service shuts down pension liberation company
Professional Pensions: The Insolvency Service has wound up a pension liberation company which helped savers access their funds earlier than allowed, following a High Court battle. Read story

FCA to modernise pension transfer redress system
Professional Pensions: The method for calculating pension transfer redress following unsuitable advice looks set to be overhauled by the Financial Conduct Authority (FCA) later this year. Read story

Greggs’ pension deficit soars 236% in a year
Professional Pensions: Greggs’ defined benefit (DB) pension deficit soared by £12.3m over twelve months, its interim report has revealed. Read story

Aberdeen Asset Management uses robo-advice to promote awareness of pension changes
Employee Benefits: Aberdeen Asset Management introduced a robo-advice platform to help employees fully understand the complex pension changes that came into effect on 6 April 2016, specifically the changes to the annual allowance and lifetime allowance for high earners. Read story

Only 2% of employers offer group risk benefits to the over 65s
Health Insurance Daily: More than half (53%) of employers have taken no steps to meet the needs of the ageing workforce, according to research from trade body Group Risk Development (GRiD).

Sasto Deal introduces menstrual leave policy
Employee Benefits: Online retail organisation Sasto Deal has introduced a menstrual leave policy for female staff. Read story

43% would feel more valued if offered group income protection or critical illness cover
Employee Benefits: Just under half (43%) of respondents would feel more valued at work if their employer provider group income protection (GIP) or group critical illness cover, according to research by Canada Life Group Insurance. Read story

45% of office staff feel under an unpleasant amount of pressure at work
Employee Benefits: Almost half (45%) of office-based respondents feel under an unpleasant amount of pressure at work on a weekly basis, according to research by Viking. Read story

Caring employers for employee carers
Reward Guide: For employees with care responsibilities or coping with bereavement, an understanding employer is a key pillar of support. Liz Walker, HR director at Unum, examines what companies can do to help.

BoE’s rate cut is ‘bad news’ for DB schemes
Professional Pensions: The Bank of England’s decision to cut interest rates for the first time in seven years will keep gilt yields lower for longer, increasing scheme deficits which are already at record highs. Read story

BoE cuts rates for first time since 2009, expands QE
Professional Pensions: The members of the Monetary Policy Committee voted unanimously for a rate cut, in a widely anticipated move, following a decision to leave rates on hold in last month's meeting. Read story

Labour leadership challenger pledges tax relief reform
Professional Pensions: Labour leadership challenger Owen Smith has pledged to reform pensions tax relief should he become prime minister. Read story