At a glance: reward and benefits headlines this week 2-8 March 2018
The headlines you might have missed between 2-8 March.
Western Power Distribution employees accept two-year pay deal
Employee Benefits: Employees who work for electricity distribution organisation Western Power Distribution, and who are members of the trade union Unite, are to receive a two-year pay deal effective from April 2018. Read story
An integrated approach is the future for financial wellbeing strategies
Employee Benefits: Employers are looking for an integrated financial wellbeing strategy that features both employee benefits products and financial education. Read story
Asda reports a 12.5% mean gender pay gap
Employee Benefits: Retail organisation Asda has reported a 12.5% mean gender pay gap for fixed hourly pay across its 149,000 UK employees as at April 2017. Read story
CMA 'moving in right direction' says industry
Professional Pensions: The industry has welcomed the Competition and Markets Authority's (CMA's) working paper on the information available to trustees on the fees and quality of investment consultants and fiduciary managers. Read story
GKN proposes to pay £160m into pension schemes as part of demerger plans
Professional Pensions: GKN has announced plans to make a cash contribution of £160m into its defined benefit (DB) pension schemes as part of demerger plans designed to fend off a hostile takeover by Melrose Industries. Read story
AE pots could grow by nearly a third in 2018
Professional Pensions: The rise in automatic enrolment (AE) contributions could lead to a 30% increase in members' pension pots, an Aviva analysis has found. Read story
Apprenticeship pay too low say MPs
HR Magazine: At the start of National Apprenticeship Week research highlights that young people are being shut out by low pay. Read story
General Medical Council swallows DB closure pill
Pensions Expert: The General Medical Council is set to close its defined benefit scheme to future accrual from April 1 2018, and is in talks with the trustees regarding additional funding. Read story
Sainsbury’s tackles bills with DB scheme merger
Pensions Expert: Supermarket giant Sainsbury’s is hoping to save on pension costs by combining its two defined benefit schemes, a move advisers say can also bring strategic alignment for the sponsor. Read story
Helping employees understand the risks around accessing their pension
Reward: According to the FCA, over half (53%) of retirees who accessed their defined contribution (DC) pensions chose to withdraw their entire pension pots. Whilst it may be tempting for employees to take advantage of the pension changes and cash in their pension, have they really thought through what’s involved? Read story
Greater London Authority publishes 37.5% ethnicity pay gap
Personnel Today: Black, Asian and minority ethnic (BAME) people employed by the Greater London Authority (GLA) group – which includes organisations such as Transport for London and the Metropolitan Police – are paid up to 37.5% less than their white colleagues, according to an ethnicity pay audit. Read story
Employers urged to offer apprentices group risk benefits
Health Insurance Daily: Employers have been urged to consider offering apprentices group risk benefits to ensure staff are treated equally. Read story
Rising auto-enrolment contribution an employee benefits opportunity
Cover: Upcoming launch of higher employer and employee minimum contributions offers chance to highlight value of employee benefits to clients, research by MetLife UK has revealed. Read story
FTSE 350 defined benefit pension deficit falls to £72bn
Employee Benefits: The accounting deficit for defined benefit (DB) pension schemes at the UK’s top 350 organisations has decreased by £1 billion, from £73 billion at the end of January 2018 to £72 billion at the end of February 2018, according to research by Mercer. Read story
Kingfisher reports a 9.6% mean gender pay gap
Employee Benefits: Retailer Kingfisher Group has reported a 9.6% mean gender pay gap for fixed hourly pay across its 34,000 UK employees as at 5 April 2017. Read story
Morrisons to face legal action over equal pay
Employee Benefits: Retailer Morrisons is to face legal action over equal pay from current and former female store-based employees who claim they are paid less than male staff working at the retailer’s distribution centres. Read story
Parliamentary committee probes UK's top 25 pension funds over climate risk mitigation
Professional Pensions: The UK's 25 largest defined benefit (DB) pension funds are being asked how they deal with climate risk after the government admitted a "widespread misunderstanding" of fiduciary duty. Read story
Court of Appeal rules in favour of Air Products in long-term incentive plan age discrimination case
Employee Benefits: The Court of Appeal has allowed an appeal by industrial gas and chemical retailer Air Products, finding that the organisation can objectively justify retirement at a specific age as a good leaver reason within its long-term incentive plan. Read story
UK ranks 25th in Europe for gender pay gap
Employee Benefits: The United Kingdom (UK) has been ranked 25th out of 30 European countries analysed for gender pay gap, according to research by Spotahome. Read story
National Trust to give 4.5% pay rise
Employee Benefits: Employees at conservation organisation the National Trust who are members of the trade union Prospect, have voted to accept a 4.5% pay increase. Read story
TPR concerned Melrose takeover of GKN likely to have 'detrimental impact’
Professional Pensions: The Pensions Regulator (TPR) has expressed concern that a Melrose Industries takeover of GKN is likely to have a "detrimental impact" on the GKN defined benefit (DB) scheme. Read story
Hundreds of BBC staff demand full pay transparency
Personnel Today: Hundreds of BBC staff, including stars such as Mariella Frostrup, Victoria Derbyshire and Rev Richard Coles, have written to the corporation demanding “full pay transparency”. Read story
41% of employers unprepared for new HMRC tax rules
Cover: Companies have one month to prepare for new regulations coming into force in April. Read story
Gender pay gap reporting driving reward restructures
Corporate Adviser: One in three organisations are planning to restructure their recruitment, HR and reward strategy as a result of preparing for pay gap reporting requirements that come into force later this month and early April, new research shows. Read story
United Airlines scraps 'unfair' lottery bonuses
HR Grapevine: United Airlines have scrapped a quarterly bonus ‘lottery’, following employee backlash. Read story
More women than men embracing wellbeing apps in the workplace
Cover: Despite initially snubbing the services, more females are using Earthmiles. Read story
Four out of five companies yet to report their gender pay gap
People Management: Majority of British employers reluctant to report, with one month to go until deadline. Read story
Pension liabilities rose by £1trn over five years, ONS data reveals
Professional Pensions: Total UK pension liabilities rose to approximately £7.6trn from 2010 to 2015, according to the latest data published by the Office for National Statistics (ONS).Read story
Webb: What tax relief changes could mean for DB pensions
Professional Pensions: Any further changes to tax relief would undoubtedly add to the cost and complexity of running a DB scheme, says Steve Webb. Read story
Sainsbury’s proposes pay increase for 130,000 store employees
Employee Benefits: Retail organisation Sainsbury’s has proposed to increase its base rate of pay for 130,000 store employees, from £8.00 an hour to £9.20 an hour for UK employees or £9.80 an hour for staff based in zones one and two in London. Read story
The Post Office completes £450m pensions buy-in
Employee Benefits: The Post Office has completed a £450 million bulk annuity buy-in transaction for its section of the Royal Mail Pension Plan. Read story
12% regret not being more engaged with their pension savings
Employee Benefits: More than one in 10 (12%) of respondents regret not being more engaged with their pension savings, wishing they had either joined their workplace pension scheme or moved out of their pension scheme’s default fund, according to research by Aegon. Read story
How we can bridge the gender gap in pensions
Professional Pensions: On International Women's Day, Kim Kaveh says evidence shows the gender gap in pension savings is still far too big, and looks at ways to close it. Read story
Crest Healthcare pleads guilty to auto-enrolment non-compliance
Employee Benefits: Crest Healthcare and its managing director, Sheila Aluko, have pleaded guilty to not complying with auto-enrolment duties and to providing false information to The Pensions Regulator (TPR) about a workplace pension scheme. Read story
Majestic Wine UK reports a 4.2% mean gender pay gap in favour of women
Employee Benefits: Retailer Majestic Wine UK has reported a 4.2% mean gender pay gap for fixed hourly pay, with female employees earning more than male employees across its three legal entities. Read story
Next to face legal action over equal pay
Employee Benefits: Retailer Next is to face legal action over equal pay from current and former female store-based employees who claim they are paid less than male staff working in the organisation’s warehouses. Read story
Gender benefits gap revealed on International Women’s Day
Corporate Adviser: Lower pension pots, lower pay, more likely to be excluded from auto-enrolment and less protected against the risk of loss of earnings capacity - the gap between women’s levels of savings and protection and men has been revealed by a slew of statistics published on International Women’s Day. Read story
57% of UK parents financially worse off with Tax-Free Childcare (TFC)
Incentive and Motivation: According to Sodexo Engage’s latest research 57% of UK parents would be financially worse off using the government’s new Tax-Free Childcare (TFC), compared to the outgoing, employer supported Childcare Vouchers (CV). Read story
Half of top 50 worst gender pay gaps are in school academies
Personnel Today: Twenty three of the 50 organisations with the largest gender pay gaps so far are school academies or multi-academy trusts, five of which are in the top 10 worst offenders for paying men more than women. Read story