26 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 19-25 August 2016

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Aegon hits out at PLSA retirement kitemark plan
Corporate Adviser: Aegon has hit out at the Pensions and Lifetime Savings Association’s plan for a kitemark for retirement savings products, arguing the FCA should be the body that sets a consistent standard across the entire industry. Read story

Major advice brands launch employee advice service
Money Marketing: Towry and Foster Denovo have teamed up with LV= and Capita Employee Benefits to offer advice to employees approaching retirement. Read story

Advisers call for clarity on unacceptable tax avoidance
Money Marketing: Advisers say they want clarity around what is acceptable and non-acceptable tax avoidance after the Government announced plans to fine those promoting tax avoidance schemes. Read story

74% offer salary sacrifice pension arrangements
Employee Benefits: Almost three-quarters (74%) of employer respondents enable staff to contribute into their defined contribution (DC) pension scheme via a salary sacrifice arrangement, according to research by Employee Benefits and Xerox HR Services. Read story

Colorado State University introduces paid parental leave for graduate assistants
Employee Benefits: Colorado State University has introduced a new paid parental leave policy for graduate assistants who are enrolled on a full time master’s or PhD programme. Read story

Helistrat gains living wage accreditation
Employee Benefits: Waste management organisation Helistrat has been accredited as a living wage employer by the Living Wage foundation. Read story

Hospital porters threaten strike action after bosses remove their television
People Management: Watching TV a ‘coping mechanism’ for staff who have regular close contact with dead bodies, says union. Read story

PPF cap increase faces continued delays
Professional Pensions: Long-awaited changes to the Pension Protection Fund (PPF) compensation cap are facing continued delays, PP understands. Read story

Amey enters £65m bulk annuity with Just Retirement
Professional Pensions: The trustees for Amey OS Pension Scheme have agreed two separate buy-in policies with Just Retirement, worth a total of £65m. Read story

BBC aims to drive down fees in private markets strategy
Pensions Expert: The BBC scheme lowered its overall investment management fees by £3m over five years, while further increasing its significant exposure to private markets, a move the scheme says allows it to match liabilities at the same time as generating capital growth. Read story

Woodford moves to scrap staff bonuses
Money Marketing: Woodford Investment Management founder Neil Woodford has scrapped staff bonuses with the firm arguing bonus payouts do not encourage the right behaviour. Read story

Business leaders urged to ditch ‘stiff upper lip’ towards health and wellbeing
Health Insurance Daily: Business leaders have been urged to ditch their “stiff upper lip” and promote health and wellbeing to their staff. Read story

Ombudsman: Standard Life did not mislead customer over pot value
Professional Pensions: The Pension Ombudsman (PO) has cleared Standard Life of misleading a customer about the value of his retirement pot, after he accidentally exceeded his lifetime allowance. Read story

IA’s advisory board refuses to endorse ‘Loch Ness Monster’ fees research
Professional Pensions: The chair of the Investment Association’s (IA) advisory board on cost transparency Mark Fawcett has distanced himself from the trade body’s controversial report on charges. Read story

Huge rise in maternity discrimination, says Citizens Advice
People Management: More new mothers are being pushed out of the workplace, with reduction in working hours the biggest source of complaints. Read story

Gender pay gap reporting rules to be extended to the public sector
People Management: BBC and Channel 4 to be caught by the new regulations. Read story

Hermit Woods Winery introduces $15 an hour living wage
Employee Benefits: US-based Hermit Woods Winery has introduced a $15 an hour living wage, which will be funded via 3.5% surcharge on its products. Read story

63% of employers say managing employee stress and mental health is top priority
Employee Benefits: Nearly two-thirds (63%) of UK respondents say managing employee stress and mental health issues is their top priority, according to research by Aon Employee Benefits. Read story

Inspired Outsourcing celebrates staff achievments with Oscars-themed awards
Employee Benefits: Newcastle-based contact centre Inspired Outsourcing has recognised staff performance with an Oscars-themed award ceremony. Read story

Two-thirds of employers don’t understand seriousness of health issues
Reward Guide: A new survey by Aon found that two thirds of UK employers fail to understand the impact of staff health issues. Read story

Help to Buy Isa under fire over Govt deposit clause
Money Marketing: It has emerged first-time buyers cannot use the Help to Buy Isa to boost their deposit, after the Government introduced a clause limiting the bonus until after completion. Read story

UK employers lag on health strategy – Aon report
Corporate Adviser: UK employers are less likely to have a defined health strategy than their international peers and two-thirds do not understand the impact of employee health issues, according to new research. Read story

Top tips on using share schemes to engage staff with business performance
Employee Benefits: Employee share schemes can give staff a sense of ownership and increase interest in business performance. Read story

Salvation Army derisks as charities struggle with pension deficits
Pensions Expert: The Salvation Army has recently reduced risk in its UK defined benefit multi-employer scheme, having made efforts to tackle its pension deficit, but pension obligations are proving increasingly problematic for many charities. Read story

Average gender pay gap falls to 18%
Employee Benefits: On average, women receive 18% less pay per hour than men, according to research by the Institute of Fiscal Studies (IFS). Read story

Ibstock consults on closing defined benefit pension scheme to future accrual
Employee Benefits: Brick manufacturer Ibstock is consulting staff on a proposal to close its defined benefit (DB) pension scheme to future accrual for all active members. Read story

60% who have used pensions freedoms unsure how to fund future care
Employee Benefits: Less than two-thirds (60%) of respondents who have accessed their pension since the pension freedoms were introduced in April 2015 have not thought about how they will pay for future care needs, according to research by Citizens Advice. Read story

Women still missing out on pay and promotions
HR Magazine: Last year 14% of men in management roles were promoted compared with only 10% of women. Read story

Industry calls for scrapping of asset manager bonuses
Professional Pensions: Industry officials have called for asset manager reward systems to be axed in favour of higher flat salaries, in order to discourage short-termism. Read story

Uproar over lack of beneficiary representation on LGPS pools
Professional Pensions: The local government pension scheme (LGPS) pools have come under fire for not including member representation on governance boards to oversee the radical changes. Read story

Centrica launches triage service to combat absence
Employee Benefits: Centrica has introduced a triage service for employees as part of its move to a centralised approach to health and wellbeing. Read story

82% cite making an error at work as top cause of stress
Employee Benefits: Employees’ stress levels in the workplace and how they react to causes of stress may be dependent on individuals’ personality types, according to research by Deloitte. Read story

GSK, APL Health and Prospectus give staff time off to attend cervical screenings
Employee Benefits: APL Health, GSK Uk Pharmaceuticals, Middlesborough Council, Pelican Healthcare and Prospectus are among the employers that have joined a campaign to allow female staff off time during the working day to attend cervical screenings. Read story

36% offer global parental leave policy
Employee Benefits: Just over one-third (36%) of respondents worldwide have a global parental leave policy covering multiple types of leave, according to research by Mercer. Read story

Qantas awards bonus to employees to recognise record results
Employee Benefits: Australian airline Qantas is to award its 25,000 employees a bonus to celebrate the organisation achieving record results in the past financial year. Read story

Dentsu Aegis Network enhances shared parental pay
Employee Benefits: Dentsu Aegis Network has launched enhanced shared parental pay for working parents. Read story

Conditional indexation with safeguards is ‘least worst option for members’
Professional Pensions: Allowing struggling defined benefit (DB) schemes to temporarily stop paying pension increases could help them get back on track while avoiding huge cuts to members’ pensions. Read story

Having a moral duty is not the same as being legally liable
Professional Pensions: Malcolm McLean wonders whether Sir Philip Green will accept a moral responsibility to deal with the BHS pension deficit. Read story

Hoarding cash and benefits hit: The realities of pension freedoms
Money Marketing: A worrying number of consumers are using pension freedoms to transfer their pension pot into their bank account, research suggests. Read story

Climate change is ‘overblown nonsense’ and not a material risk, says industry
Professional Pensions: Industry does not take climate risk to heart in its investment decisions, PP research reveals. Read story

LAPFF calls for independent probe of Sports Direct’s labour strategy
Professional Pensions: The Local Authority Pension Fund Forum (LAPFF) has called for an independent review of Sports Direct’s human capital management strategy. Read story

1 in 8 hit by tax or welfare loss from pension freedom
Corporate Adviser: One in eight people using pension freedoms face unexpected tax or welfare losses while 29 per cent put their savings in their bank account, new research shows. Read story

Perfect storm for annuities ‘could see drawdown become the default’
Corporate Adviser: A perfect storm for annuities of falling interest rates and soaring demand for gilts could lead to drawdown becoming default retirement option, experts are warning. Read story

Vodafone scheme diversifies with alternatives additions
Pensions Expert: Vodafone has made a foray into a number of new asset classes, including alternative beta, alternative credit and private market investments, for greater diversification. Read story

CPI and RPI gap at largest for five years as schemes eye law change
Pensions Expert: The retail price index and consumer price index were the farthest apart they have been for five years in last month’s inflation figures, prompting debate that legislation could level the playing field for schemes using RPI for benefit increases. Read story

Commuting ‘increases weight, stress and blood pressure’
Health Insurance Daily: Average UK commute has increased to almost an hour a day. Read story

Paternity leave policies becoming more inclusive globally
HR Magazine: Organisations are expanding leave policies to include fathers, part-time employees and caregivers of parents. Read story

Gender pay gap hits women with children the most
Reward Guide: Women who return to work part-time after having a baby are earning 33% less than men by the time their child is aged 12. Read story