05 Feb 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 January - 4 February 2016 

HRDs cannot 'dictate' company culture
HR Magazine: Mandy Bromley, global OE director for Unilever, discusses flexibility in workplace culture. Read story

Schemes don’t get value for money from paying actuaries more
Professional Pensions: Pension schemes paying higher actuarial fees are not getting better value for money from their providers, according to KGC’s sixth actuarial fee and services survey. Read story

People’s Pension comes top in survey of AE providers
Professional Pensions: The People’s Pensions has come out top for service according to research into auto-enrolment providers carried out by Pensions PlayPen. Read story

South Yorkshire and Tyne & Wear join ‘Border to coast’ LGPS pool
Professional Pensions: Local government pension funds for South Yorkshire and Tyne & Wear have joined a collaboration group led by Cumbria, East Riding and Surrey to pool investments. Read story

TPR: Trustees to be segmented in 21st century trustee initiative
Professional Pensions: The Pensions Regulator (TPR) will segment the trustee population to ensure their needs are met as part of the 21st century trusteeship programme. Read story

TPR consults on how technology can improve pensions
Professional Pensions: The Pensions Regulator (TPR) is seeking views on how innovation and technology can help deliver better outcomes for savers at retirement. Read story

Just 10% of marketeers believe remuneration is fair
Employee Benefits: Just one in 10 (10%) of marketeer respondents believe that the financial remuneration they receive from their employer is fair, according to research by Marketing Week in collaboration with Econsultancy, Design Week and Creative Review. Read story

63% actively considering how to access pension savings through the freedoms
Employee Benefits: Almost two-thirds (63%) of respondents are actively considering how to access their defined contribution (DC) pension savings through the flexibilities that came into effect in April 2015, according to research by the Pensions and Lifetime Savings Association (PLSA). Read story

AE provider selections made ‘on here and now issues’
Corporate Adviser: Employers see the ease with which they can set up their auto-enrolment scheme as considerably more important than the scheme’s investment approach according to new figures from Pension Playpen. Read story

Renishaw recognises true liability as IFRIC 14 bites
Pensions Expert: Gloucestershire-based engineering company Renishaw’s defined benefit liabilities jumped £15.6m above the IAS 19 accounting deficit at the end of last year, as experts highlighted the impact the accounting measure IFRIC 14 has on scheme valuations. Read story

Stress and mental ill health remain major causes of employee absence
Cover Magazine: Stress and mental ill health remain one of the major causes of long-term absence for businesses but there have been improvements compared to last year, according to research from Group Risk Development (GRiD). Read story

Southwark Council achieves 12% take-up rate for retail discount scheme in first three months
Employee Benefits: More than one in 10 (12%) of Southwark Council’s 4,500 employees have signed up for its retail discount scheme in the three months since the benefit was introduced. Read story

88% of employees regularly experience stress
Employee Benefits: More than two-fifths (88%) of UK respondents regularly experience stress at work, according to research by human capital management firm ADP. Read story

Mercer acquires the Positive Ageing Company
Employee Benefits: Talent, health and retirement consultant Mercer has acquired the Positive Ageing Company, an independent adviser specialising in issues surrounding the ageing workforce. Read story

How tax relief reform will affect pension schemes
Professional Pensions: Jonathan Stapleton looks at some of the implications of any shift to flat-rate pension tax relief. Read story

Low interest rates and oil prices challenge DB funding levels
Professional Pensions: Defined benefit (DB) schemes have not had a good start to the year with falling oil prices and low interest rates according to JLT Employee Benefits. Read story

Industry warns draft DC code is one-size-fits-all and lacks clarity on trustees’ duties
Professional Pensions: The draft defined contribution (DC) code is not suitable for all types of schemes and lacks clarity on trustees’ responsibilities, according to responses to the regulator’s consultation. Read story

Productivity impacted by financial wellness
Reward Guide: With over a quarter (27%) of UK employees describing themselves as 'at the tipping point' financially, it is of little surprise that one in eight (13%) are finding that their money worries are hindering their concentration. Read story

Racial pay gap grows as employees become better qualified
CIPD: Workers with degrees who identify as black, African, Caribbean, or black British earn 23 per cent less than their white counterparts on average, according to analysis from the TUC. Read story

Cost per Pension Wise appointment rises to £514
Corporate Adviser: The cost of each Pension Wise appointment rose to £514 in December, while the number of appointments fell to 3,205, down from a high of 6,755 in October, according to the latest Government statistics. Read story

New code firms up boundaries on incentive exercises
Pensions Expert: A revised code of practice on incentive exercises will provide trustees and employers with practical tips on problem areas, as schemes begin to target more holistic derisking strategies. Read story

Allpay encourages breaks away from technology
Employee Benefits: The organisation, which employs around 300 people, provides a range of services, including bill payment, prepaid cards and cashless payment systems. Ensuring staff take regular time away from technology, therefore, is actively encouraged throughout the organisation. Read story

Alfresco uses on and offline channels to engage staff with benefits
Employee Benefits: It provides its employees with a benefits package, including medical and dental insurance, childcare vouchers, group income protection and a health cash plan, which are available via a benefits portal. Read story

Turbulence driving consumers back towards annuities – eValue
Corporate Adviser: Market turbulence is driving consumers towards guaranteed income, with consumer preferences shifting back to the safety of annuities since pension freedom day in April 2015, new research from eValue shows. Read story

We’ll pay you not to work, Telefónica tells staff aged over 53
CIPD: Spanish telecoms group Telefónica is offering staff aged over 53 years who have been with the organisation for more than 15 years, the chance to stay at home, and not work, on 68 per cent of their salary. Read story

Hackney’s pension committee approves measures to tackle climate change risks
Professional Pensions: Hackney Council’s pension fund committee has agreed to endorse a series of recommendations on dealing with fossil fuel and climate change issues after facing mounting pressure from a campaign group. Read story

Boots UK increases base pay for hourly paid staff
Employee Benefits: Pharmacy retailer Boots UK is increasing the starting rate of pay for customer assistant staff outside of London by 7%, and that of customer assistants in London by 3%. Read story

31% say reduction in tax relief causes higher earners to leave workplace pension schemes
Employee Benefits: Around a third (31%) of employer respondents say the reduction in pensions tax relief and complexities of the workplace pensions regime have caused employees on higher incomes to leave their pension schemes, according to research by the Association of Consulting Actuaries (ACA). Read story

61% of financial services employers increase pay by more than 5%
Employee Benefits: Around two-thirds (61%) of employer respondents increased employees’ fixed pay by more than 5% in 2015, according to research by Mercer. Read story

Advertised salaries in North East fall by 5.3%
HR Magazine: The next largest falls were found in London and Scotland, where the average declined by 5.2%. Read story

ACA highlights challenges to Osborne tax relief plans
Corporate Adviser: Schemes’ haemorrhaging of higher rate taxpayers and low support towards and Isa-style retirement saving system highlight fundamental challenges to the Chancellor’s assertion that the pension incentives review must boost pensions savings, a major survey by the Association of Consulting Actuaries has found. Read story

Marshall Goldsmith: Employees should take more responsibility for their own engagement
HR Magazine: Employees need to make more of an effort to be engaged, according to coaching guru Marshall Goldsmith. Read story

Tesco to increase staff pay by up to 3%
Employee Benefits: Tesco is to increase the pay of its UK store-based staff by up to 3% as part of a two-year pay deal. Read story

Carat launches wellness month for employees
Employee Benefits: Media firm Carat has launched a wellness month for its 9,000 members of staff. Read story

39% say financial struggles affect their performance at work
Employee Benefits: More than a third (39%) of respondents say their financial struggles prevent them from performing at their best at work, according to research by Willis Towers Watson. Read story

Employers still not reviewing pensions following April freedoms
Professional Pensions: Just 13% of employers have reviewed their pension offerings since the April freedoms as most companies are still struggling to understand the implications, according to research. Read story

Union calls Post Office’s plans to close DB a ‘scandalous attack’
Professional Pensions: The Communication Workers Union (CWU) has attacked plans from the Post Office to close its defined benefit (DB) scheme to future accrual on 31 August. Read story

Three-quarters of workers expect to retire poorer than their parents
Professional Pensions: Nearly three-quarters of employees believe they will less comfortable than their parents in retirement, while a fifth are seriously worried about their finances, according to research. Read story

23,000 refunded tax after overpaying on pension freedoms
Corporate Adviser: HMRC repaid £24m in overpaid tax refunds in the last quarter of 2015 to individuals who had been allocated emergency tax codes to exercise pension freedoms. Read story

Case Study: UKFast’s employee motivation
Reward Guide: CEO and founder of UKFast, Lawrence Jones, discusses the importance of employee motivation, and why the company is supporting Employee Motivation Day on 25th February. Read story

Encouraging flexible healthcare
Reward Guide: A flexible benefits strategy can make healthcare engaging for a wider workplace demographic, says Raman Sankaran, sales and marketing director at Simplyhealth. Read story

Lendlease launches mental health awareness training for staff
Employee Benefits: Property and infrastructure organisation Lendlease has introduced a mental health awareness training programme for all new employees. Read story

Cox Enterprises donates $200,000 to cancer charities as part of staff wellbeing programme
Employee Benefits: US communications, media and automotive services firm Cox Enterprises has donated a total of $200,000 to two charities as part of its employee health and wellbeing programme. Read story

30% do not know who to talk to about mental health support
Employee Benefits: Almost a third (30%) of respondents do not know who to talk to or where to turn for support with mental health issues, according to research by Westfield Health. Read story

Amey develops its benefits offering as it continues to grow
Employee Benefits: Public services provider Amey connects its employee benefits strategy with its culture and values in order to motivate and engage staff, as well as educate them about the organisation. Read story

Cap on golden handshakes could affect average earners at Magnox
Pensions Expert: Workers across the public sector will see a £95,000 cap on exit payments under a new clause added to the 2015-16 enterprise bill which could hit average earners at nuclear decommissioning company Magnox. Read story

Cost and complexity increase support for multi-employer schemes
Pensions Expert: The cost and complexity of running a pension scheme is increasing the appeal of multi-employer schemes, experts have said, as a survey shows industry support for government-backed scheme consolidation. Read story

Women always lose at pensions – Teresa Hunter
Corporate Adviser: Waspi’s fight is the latest round in a long battle of the sexes over pensions says Teresa Hunter. Read story

Ros Altmann ‘worried’ about lost tax relief for low earners
Professional Pensions: The different way peoples’ pension contributions are calculated risks cutting low earners out of auto-enrolment (AE) according to the pensions minister. Read story

Tories are 'gambling' with future generation of savers, warns Labour
Professional Pensions: George Osborne has undermined the long-term sustainability of pensions through freedom and choice, according to the shadow secretary of state for work and pensions. Read story

Ombudsman orders County Tyre to refund member for ceased payments
Professional Pensions: The pensions ombudsman (PO) has ordered County Tyre to backdate payments to a member after it found they were wrongly stopped. Read story

Johnston Press slashes pension deficit by more than half
Professional Pensions: Johnston Press has reduced the deficit of its defined benefit (DB) scheme by £53m following a pension study and changes to its scheme rules. Read story