At a glance: reward and benefits headlines this week 4-10 September 2020

The headlines you might have missed between 4-10 September 2020.

Job retention bonus not ‘enough’ to stop millions becoming unemployed
HR Review: The Job Retention Bonus which rewards employers with £1,000 for every worker they bring back from furlough until January 2021 is not “enough to stop millions of people losing their livelihoods”. Read story

Government confirms pension freedoms age hike to 57
Professional Pensions: The government has confirmed the minimum pension age will rise from 55 to 57 by 2028 to coincide with the rise in the state pension age to 67. Read story

TPR seeks confiscation of trustee's £250,000 charity pension fraud
Professional Pensions: The former trustee of a charity who defrauded a pension fund of £250,000 will appear in court today (4 September), one year after The Pensions Regulator (TPR) said it would seek a confiscation order for the funds’ return. Read story

Number of Brits working exclusively from home steadily decreasing, says ONS
People Management: Figures also show more people are now travelling to work, as business, retail and hospitality groups continue to call for a return to the office. Read story

90% of employees would stay with an organisation if it offers remote working
Employee Benefits: Nine in 10 (90%) employees would remain with an organisation if they are offered the flexibility of remote working, according to research by Workvivo. Read story

Vodacom Group introduces gender-neutral parental leave
Employee Benefits: South African mobile communications organisation Vodacom Group has introduced gender-neutral parental leave policy, effective immediately. Read story

HR VP reveals grrr-eat initiative to promote culture
HR Grapevine: A Vice President of HR has shared details of an initiative that the company launched to remind staff that wherever they are working, they are still part of ‘one big work family’. Read story

Baby boomers' wellbeing worries employers most – GriD
Cover: GRiD research reveals lack of general fitness among workers aged 56-74 is biggest worry. Read story

British Steel scheme rumoured to be in advanced buyout negotiations
Pensions Age: The Old British Steel Pension Scheme (OBSPS) is in advanced negotiations for a buyout funded by Pension Insurance Corporation (PIC), according to a report from Sky News. Read story

Suitability and eligibility clarifications needed from FCA DB transfer guidance - Aegon
Pensions Age: Aegon has called on the Financial Conduct Authority’s (FCA) to provide further guidance on when a workplace pension might not be the most suitable receiving scheme, in response to the regulator's Advising on Pension Transfers consultation. Read story

Why employers should be embracing flexible working for new Dads post Covid-19
HR News: One in five (19%) new dads have faked illness at work to take care of the children and 20% of dads have changed jobs to better reconcile work and family obligations, according to a new report from telecommunications firm PowWowNow[i]. Read story

Why providing flexibility could cost companies dearly
HR Magazine: There is no doubt that the COVID-19 pandemic has drastically accelerated the shift towards more flexible working practices across the economy. Read story

Extend furlough scheme to vulnerable sectors or face more job cuts
HR Review: The UK could endure a second wave of job cuts and a loss of skills, if the furlough scheme is not extended for sectors hardest hit by COVID-19. Read story

USS launches 2020 valuation consultation; Universities and staff face vast hike in annual pension costs
Professional Pensions: The Universities Superannuation Scheme (USS) has launched a consultation on its 2020 valuation and ‘technical provisions’ laying out options to reduce its expanding deficit. Read story

Plumbing scheme announces independent governance review
Pensions Expert: The Plumbing & Mechanical Services (UK) Industry Pension Scheme is to carry out an independent review of its governance structures, after sustained criticism from the scheme's small employers and a court case over its handling of orphan liabilities. Read story

National living wage could be frozen amid Covid uncertainty
People Management: Low Pay Commission warns planned rises may be ‘unaffordable’ for employers in a recession but TUC urges government not to ‘renege on its commitment’. Read story

Shared parental leave uptake still ‘exceptionally low’, research finds
People Management: Experts call on government to better incentivise SPL but also stress employers’ role in making fathers aware of their rights and normalising men’s involvement in childcare. Read story

Sunderland City Council to pay employees the real living wage
Employee Benefits: Sunderland City Council is to pay all UK employees at least the voluntary living wage, improving base salaries for any of its 3,000 members of staff who fall within this pay bracket. Read story

67% of employees want more financial wellbeing support from their employers
Employee Benefits: Just over two-thirds (67%) of employees feel unsupported by their organisation when it comes to financial wellbeing, according to research by Nudge Global. Read story

Businesses are paying the price of stressed staff as pandemic money pressure takes its toll
HR News: Four in 10 (41%) employers surveyed say that increased financial stress amongst employees has negatively impacted their business this year – almost three times the 15% who reported experiencing this challenge before 2020. Read story

£3.6 Billion claimed through furlough either fraudulently or by mistake
HR Review: It has been estimated that £3.6 billion of furlough payments may have been claimed, either through fraud or by employers making mistakes. Read story

Almost half of employees worry about job security
Corporate Adviser: Seven out of 10 employees say they are not ‘resilient’ in the wake of the coronavirus pandemic, according to new research. Read story

Civil Aviation Authority awards £4bn fiduciary mandate to BlackRock
Professional Pensions: The Civil Aviation Authority Pension Scheme (CAAPS) has appointed BlackRock to run a £4bn fiduciary mandate for its growth portfolios. Read story

HR unaware of staff money worries in some cases, poll finds
People Management: Research also reveals nine in 10 people professionals don’t feel supported by board-level managers in offering financial wellbeing initiatives. Read story

The Pensions Regulator forces former chief executive to pay £286,852
Employee Benefits: The Pensions Regulator (TPR) has forced the former chief executive of Yateley Industries to pay £286,852 to compensate members of a charity pension scheme that he defrauded. Read story

NHS Wales general practice staff to receive 2.8% pay rise
Employee Benefits: NHS Wales general practice staff will receive a 2.8% pay increase, aligning their pay with contract recommendations by the Review Body on Doctors’ and Dentists’ Remuneration. Read story

Work pressures forcing parents to miss healthcare appointments
Cover: Two fifths have cancelled, or weren’t able to make, healthcare appointments due to work commitments. Read story

Small businesses well positioned to manage employees’ post-COVID-19 mental health issues
Employer News: RedArc is urging smaller employers to be on high alert for mental health issues amongst their staff as the government begins to encourage a wider return to the workplace. Read story

DB pension deficit falls by almost £60bn in August – PPF
Pensions Age: The combined deficit of UK defined benefit (DB) pension schemes in the Pension Protection Fund (PPF) 7800 Index fell to £140.5bn at the end of June 2020, down from the £199.5bn deficit reported in July 2020. Read story

Smoothing mechanism could save govt £15bn on state pensions – PPI
Pensions Age: Changing the triple lock on state pensions to a ‘smoothing mechanism’ could save the government £15bn in 2022/23, according to the Pensions Policy Institute (PPI). Read story

How to support your colleagues’ wellbeing now that you are back in the office
HR News: Prior to the pandemic, office life consisted of light chats about the weather and the weekend. But as employees return to the workplace after months of lockdown, watercooler conversations are likely to be very different. Read story

Calls for greater trustee power as WPC scam inquiry consultation closes
Professional Pensions: Trustees need to be given the choice to directly refuse pension transfers if the industry is to properly plug the proliferation of scams, the Work and Pensions Committee (WPC) has been told. Read story

Scrap flat-fee structures on low-value DC pots, industry agrees
Professional Pensions: Close to two-thirds of industry respondents to a Professional Pensions poll agreed they would like to see flat-fee structures on low-value defined contribution (DC) pots scrapped. Read story

Could employers be obliged to pay the full wages of self-isolating staff?
People Management: Campaigners have highlighted the plight of low-paid workers unable to afford quarantining themselves and called on the government to act. But how likely is statutory sick pay reform? Read story

Veolia introduces share scheme for 140,000 employees
Employee Benefits: French environmental services organisation Veolia has introduced a new share scheme for its 140,000 employees. Read story

29% of employers concerned about staff wellbeing during Covid-19
Employee Benefits: Just under one-third (29%) of small businesses are concerned that the Covid-19 (Coronavirus) pandemic is having a negative affect on the wellbeing of their employees, according to research by Worklife. Read story

Bolton NHS Foundation Trust reports 29.4% mean gender pay gap
Employee Benefits: Bolton NHS Foundation Trust has reported a mean gender pay gap of 29.4% for average hourly pay as at April 2020. Read story

The worst UK cities for homeworking
HR Grapevine: London, Cardiff and Sheffield have been ranked three of the worst UK cities for working from home, new research has found. Read story

The language barrier to wellbeing in the workplace
Workplace Insight: In a recent piece for the Architects Journal, incoming BCO President Paul Patenall extolled the virtues of a Danish idea called Arbejdsglaede, (almost) literally the joy of work. Read story

Increase in AE workers slows in August
Pensions Age: Growth in auto-enrolled employees slowed in August, with an additional 12,000 workers being auto-enrolled into workplace schemes, according to data from The Pensions Regulator (TPR). Read story

Five tips to onboard new employees remotely
HR News: As remote working continues to be the norm for many companies and their employees, skeeled, a provider of AI predictive talent acquisition software offers five best practices tips for them to effectively onboard new recruits virtually and remotely. Read story

U.S. Employers Explore Overhauls to Employee Benefits to Preserve Jobs
Incentive and Motivation: COVID-19 and the economic downturn have forced U.S. employers to examine cuts that were considered unthinkable at the beginning of the year, according to Gallagher’s 2020 Benefits Strategy & Benchmarking Survey. Read story

Companies are voluntarily calculating their ethnicity pay gap
HR Review: Almost a quarter of businesses have calculated their ethnicity pay gap already even though there is currently no legal requirement to do so. Read story

If SSP not raised test and trace has higher chance of failing
HR Review: The NHS Test and Trace system has a heightened chance of failing if Statutory Sick Pay (SSP) is not boosted. Read story

Pension schemes subjects of 'social engineering' in government climate risk disclosure proposal
Professional Pensions: Complying with the government’s proposals for climate risk disclosure is an unnecessary burden on schemes which are being used as vehicles for social engineering, PP poll respondents say. Read story

Pensions 'holidays' wiping thousands from DC market
Professional Pensions: One in ten UK workers have paused their pension contributions during the Covid-19 pandemic with their absence from the defined contribution (DC) space bringing serious implications for the retirement landscape. Read story

Zurich UK introduces flexible-working policy for 4,500 employees
Employee Benefits: Insurance organisation Zurich UK has introduced a permanent flexible-working policy for its 4,500 employees due to the high demand for remote working since the Covid-19 (Coronavirus) pandemic. Read story

FDM reports median gender pay gap of -2.1%
Employee Benefits: Recruitment organisation FDM has reported a median gender pay gap of -2.1% for April 2020, an improvement on the -1.7% on the year before. Read story

Staff 'fight' over 'COVID-19 policies that benefit parents'
HR Grapevine: When schools and childcare facilities closed in light of the coronavirus pandemic, it caused huge problems for working parents as they juggled childcare, home-schooling and holding down a job at the same time. Read story

Govt must consider 'pot follows member' approach to resolve small pots issue - LCP
Pensions Age: The government must reconsider using a ‘pot follows member’ strategy as a solution to the growing number of small unclaimed pension pots, according to LCP head of defined contribution (DC) consulting, Laura Myers. Read story

NASUWT urges employer to rethink TPS changes as teachers announce strike action
Pensions Age: The Teachers' Union, NASUWT, has urged Westholme School to withdraw its "unjustified" plans to discontinue paying into the Teachers' Pension Scheme to avoid further strike action from union members. Read story

PIC completes £3.5bn of bulk annuity deals in H1 2020
Pensions Age: Pension Insurance Corporation (PIC) completed £3.5bn of bulk annuity deals in H1 2020, down from the £6bn worth of transactions in H1 2019, its half-year results have revealed. Read story