02 Sep 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 26 August - 1 September

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Hounslow commits £100m to multi-asset income
Pensions Expert: The London Borough of Hounslow Pension Fund has introduced a £100m allocation to multi-asset income in an effort to diversify as it moves towards being cash flow negative. Read story

UberEats drivers protest over pay
Employee Benefits: UberEats drivers are protesting today (Friday 26 August 2016) in a bid to be paid the London living wage rather than per delivery. Read story

36% have not reviewed core benefits in the last two years
Employee Benefits: Just over a third (36%) of respondents have not reviewed their core benefits offering in the last two years, according to research by Hargreaves Lansdown. Read story

Brits receive just under 9% of salary for week’s statutory sick pay
Employee Benefits: British employees receive just 8.68% of their salary in statutory sick pay when they have to take a week off work due to illness, which equates to £35.96 based on the UK’s average salary of £21,552, according to research by Vouchercloud. Read story

One in six workers have taken time off to care for elderly relatives
Health Insurance Daily: Almost one in six British workers (16%) have had to take time off work, or work irregular hours, to care for an elderly relative, a poll shows. Read story

DB costing 50pc of salary – pushing deficit to £1trillion
Corporate Adviser: The cost of providing a defined benefit pension now equates to 50 per cent of pay, with low gilt yields caused by post-Brexit market uncertainty pushing deficits to a record high of £1 trillion, according to Hymans Robertson. Read story

SimplyBiz hits 500 DB transfers in first year
Corporate Adviser: SimplyBiz’s group’s pension transfer bureau, launched in partnership with Selectapension, has transacted more than 500 cases in its first year. Read story

Withers reviews global benefits offering
Employee Benefits: Global benefits is currently a hot topic for law firm Withers, which has opened six new international offices in the past 18 months and hired many new employees. Read story

Sally Hart: What are the key factors in creating a global benefits strategy?
Employee Benefits: An effective global benefits strategy provides a framework for benefit plan design in all countries of operation. Read story

Jill Clucas: How Brexit could affect pension schemes
Employee Benefits: Funding levels in defined benefit (DB) occupational pension schemes have caused immediate concern, with falling gilt yields increasing deficits significantly.  Employers with open DB schemes may consider the Brexit vote the trigger to replace DB accrual with a defined contribution (DC) arrangement for the future. Read story

Could trustees be sued over excessive charges?
Professional Pensions: As US savers fight their pension schemes over high costs and charges, there is concern British trustees could see similar action. James Phillips reports. Read story

Woodford IM: De-risking exacerbates deficits
Professional Pensions: De-risking is actually “de-returning”, Woodford Investment Management has said in a damning attack on low-risk investment strategies. Read story

Three-quarters of workers could be hit by Brexit-induced pension shortfall
People Management: Experts warn of short-term ‘carnage’ as millions will need to save more – or work longer – to enjoy an adequate retirement income. Read story

Living wage increase could cost care sector £2.3bn per year by 2020
People Management: Think tank warns more government funding is needed to pay care workers, while British Chambers of Commerce calls for rethink on planned NLW rise. Read story

Apple, BP, Cisco and Goodman Masson among best employers for work-life balance
Employee Benefits: Apple, BP, American Express, Cisco Systems (pictured) and Goodman Masson are among the top organisations providing employees with a good work-life balance, according to research by Glassdoor. Read story

75% of DC pension savers will retire on inadequate income
Employee Benefits: Post-Brexit, the proportion of savers into a defined contribution (DC) pension scheme who will retire on an inadequate income has risen to 75% from 66%, according to research by Hymans Robertson. Read story

5% of FTSE 250 still provide defined benefit pensions
Employee Benefits: The total deficit of defined benefit (DB) pension schemes in FTSE 250 organisations has reached £11 billion, according to research by JLT Employee Benefits. Read story

Remote working: Is the tide turning back again?
HR Magazine: Research shows a drop in popularity of remote working, so we shouldn't forget the humble office. Read story

Treasury proposes £1,000 pension advice allowance
Corporate Adviser: New pension advice allowances that permit savers up to £1,000 to pay for financial advice are at the heart of Treasury proposals published today in response to the Financial Advice Market Review. Read story

Richard Harrington commits to continuing key pension reforms
Employee Benefits: Since Richard Harrington’s appointment as parliamentary under secretary of state at the Department for Work and Pensions in July 2016, there has been much industry speculation about his priorities and commitment to existing pension reforms and proposed changes. Read story

MPs call for greater protection for pregnant workers
HR Magazine: There has been a ‘shocking’ increase in workplace pregnancy discrimination over the past decade. Read story

Classic Motor Cars launches employee ownership trust
Employee Benefits: Classic Motor Cars (CMC) has launched an employee ownership trust. Read story

Getting advice right is key to success of pension freedoms
Professional Pensions: The success of freedom and choice will largely depend on the quality of advice and the number of people who receive it according to the industry. Read story

Pirelli enters £600m longevity swap
Professional Pensions: Pirelli has completed a longevity swap transaction with Zurich for £600m of liabilities across its two main defined benefit (DB) pension schemes. Read story

Just 5% of FTSE 250 firms still run large DB schemes
Professional Pensions: Only 11 companies in the FTSE 250 provide defined benefit (DB) pensions for a significant number of employees, according to JLT Employee Benefits. Read story

Govt sets out plans for £500 advice allowance but warns of fraud risks
Money Marketing: The Government is pushing ahead with plans to introduce a £500 allowance for retirement advice but warns there are fraud risks attached with using the allowance more than once. Read story

Countrywide aligns benefits and reward to help boost growth
Employee Benefits: Countrywide Group, the UK’s largest property services group, began the task of building a reward function in September 2014, when it drafted in Neil Goodwin, head of reward. Read story

Best employers for work-life balance revealed
Health Insurance Daily: The UK’s best companies for work-life balance have been revealed by jobs site Glassdoor, based on reviews submitted to its website by current and former staff. Read story

Marks and Spencer lobbied by MPs over planned pay changes
Employee Benefits: Marks and Spencer (M&S) will today (Thursday 1 September) be lobbied by members of Parliament (MPs), campaigners and activists against proposed changes to pay. Read story

49% cite flexible working as most coveted future benefit
Employee Benefits: Just under half (49%) of respondents say flexible-working arrangements and work-life balance will be the most important benefits to them in the future, making it the most coveted benefit, according to research by Grass Roots. Read story

Uber offers drivers new saving perks
Reward Guide: The taxi service Uber is helping its drivers save for their retirement. Read story

Government strategies for protecting pregnant workers ‘lack urgency and bite’, say MPs
People Management: Report calls for better safeguards for expectant mothers, amid ‘shocking’ rise in workplace discrimination. Read story

SMEs react to living wage rise by cutting hours and rethinking hiring
People Management: Experts say it’s ‘concerning’ that few firms are responding by improving efficiency, while industry body calls for 2020 target of £9 per hour to be changed. Read story

DB deficit surges £100bn in August
Professional Pensions: The total deficit for defined benefit (DB) schemes reached £710bn on a funding basis by 29 August amid further falls in gilt yields. Read story

Carclo issues dividend warning as deficit worsens
Professional Pensions: Plastic manufacturer Carclo has warned it might not be able to pay its last dividend of the year due to a rising pension deficit since Brexit. Read story

Are UK schemes better off in or out of Europe?
Professional Pensions: Charlotte Moore looks at some of the issues that could affect UK schemes as we move towards exiting the European Union. Read story