All Employee Benefits articles in Web Issue – Page 330
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Default retirement age should be abolished immediately
The majority of people (65%) want the government to scrap the forced retirement age, according to a new survey by charity Age UK.The survey also found widespread opposition to the principles of the legislation, with 75% of respondents aged 25-44 believing employers should not be allowed to force employees to ...
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Can improving employee engagement help start to address the savings gap?
This article is supplied by our channel sponsor Scottish WidowsThe current economic outlook is a hot topic, ranging from the policies of the new coalition government to public sector debt and the shaky economic recovery. The one thing we can be sure of is that our short term economic future ...
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Aegon to wind up bulk annuity business in the UK
Aegon is to withdraw from the bulk annuities market as it seeks to cut back the cost of its UK businesses.The Dutch insurer is taking steps to improve return on capital by targeting cost reductions of 25% in its life and pensions business. It will instead refocus the business around ...
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BA agrees plan to tackle pensions deficit
British Airways (BA) has agreed a recovery plan with its pension scheme trustees to tackle its pension deficits.The recovery plan avoids closing the airline's defined benefit New Airways Pension Scheme and Airways Pension Scheme. BA will maintain its annual contributions at the current level of £330 million, plus agreed annual ...
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Review to be conducted into public sector pay
The government has commissioned economist Will Hutton to conduct an independent review of pay in the public sector.The review will investigate pay scales across the public sector, and make recommendations on how to ensure no public sector manger can earn more than twenty times the lowest-paid employee in an organisation.As ...
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Budget 2010: Two-year pay freeze for public sector staff
A two-year pay freeze is to be imposed on public sector workers earning more than £21,000.The move, announced by Chancellor George Osborne in his emergency Budget speech, will not affect the lowest-paid workers who will receive a £250 pay increase in both of these two years.He said: "Many millions of ...
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Budget 2010: Government to review pensions tax changes for high earners
The government is to work with the pensions industry to consider alternatives to the reduction of pensions tax relief for high earners.In his Budget report, Chancellor George Osborne said the government would be willing to consider alternatives to this as long as it still achieved the £3.5 billion revenue that ...
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Budget 2010: Budget to scrap compulsory annuitisation at age 75
The government is to scrap compulsory annuitisation from April 2011. It will introduce transitional measures for individuals who have yet to secure a retirement income and will reach age 75 in the meantime.In his emergency Budget, Chancellor George Osborne said the government would shortly launch a consultation on the detail ...
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Budget 2010: Higher rate capital gains tax to increase from midnight
Capital gains tax (CGT) is to increase to 28% for higher-rate tax payers from midnight.But in the first budget from the Conservative/Liberal Democrat coalition government, Chancellor George Osborne announced CGT will remain at 18% for low and middle-income earners.The rise in CGT for higher-rate tax payers will mean affected employees ...
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Budget 2010: Change to personal tax allowance
It was announced in today’s Budget that the personal allowance for under 65s will be increased by £1,000 to £7,475 in the 2011-12 tax year.The personal allowance is the amount at which no income tax is payable.As a result, the government estimates that the 880,000 lowest income taxpayers will be ...
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Budget 2010: Reduction in national insurance upper earnings limit
The national insurance upper earnings limit will be reduced to keep it aligned with the income tax higher-rate threshold. Exact figures will be confirmed in the autumn.Based on current Retail Prices Index (RPI) forecasts the basic rate limit will be reduced by £2,500 and the higher rate threshold by £1,650 ...
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Budget 2010: Employer NI to be reduced for new SMEs in targeted areas
To encourage the creation of private sector jobs in regions reliant on public sector employment, the government will shortly announce details of a new scheme to reduce employers’ national insurance contributions (NICs).During a three-year qualifying period, new businesses which start up in these areas will get a substantial reduction on ...
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Budget 2010: Review to be conducted into public sector pensions
An independent review, chaired by former Labour pensions minister John Hutton, will be conducted into public sector pensions.Chancellor George Osborne referred to the review, which will see Hutton provide an interim report by September, in today's emergency budget.In building the case for such a review, Osborne referred to figures from ...
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Budget 2010: Bankers' bonuses to be reviewed
The government is taking action to tackle what it deems to be unacceptable bank bonuses.It is to consult on a remuneration disclosure service and, working with international partners, will explore the costs and benefits of a financial activities tax on profits and remuneration.The government has also asked the Financial Services ...
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Budget 2010: Default retirement age to be scrapped and state pension age increased to 66
The coalition government will accelerate the increase in state pension age to 66 years.It will also begin phasing out the default retirement age from April next year.Charles Cotton, reward adviser at the Chartered Institute of Personnel and Development, said: “It is no great surprise that the government is planning to ...
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Budget 2010: Insurance premium tax to increase
Insurance premium tax (IPT) is to increase from 4 January 2011.The standard rate of IPT will rise from 5% to 6%.IPT applies to private medical insurance and health cash plans. However, other long-term insurances, such as protection benefits will remain exempt from the tax as long as the policy is ...
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Budget 2010: Interim measures for compulsory annuitisation announced
From today (22 June), the government has pushed back the age at which pension scheme members must purchase an annuity from 75 to 77 as a temporary measure until it develops new permanent rules.Legislation to implement changes to the age at which pensions scheme members must buy an annuity or ...
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Budget 2010: Government to act against employer-financed retirement benefit schemes (EFRBS)
In its March 2010 Budget the former Labour government announced action against arrangements which use trust and other vehicles to avoid, defer or reduce liabilities of employees and directors to income tax and national insurance or to avoid restrictions on pensions tax relief.The new coalition government has confirmed that EFRBS ...
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Halfords employees take part in charity bike challenge
Over 400 Halfords employees took part in a cycle relay challenge across the UK to raise money for Macmillan Cancer Support.The Halfords Charity Bike Challenge commenced on 14 April in Halfords most northerly store in Elgin, Scotland, and was completed on 31 May in Penzance, the most southerly store.Each of ...
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Resolution acquires Axa Life to integrate with Friends Provident
Resolution has acquired the majority of Axa’s UK life assurance business (comprising protection, corporate benefits, group pensions and annuities) in a deal worth approximately £2.75bn.Axa’s operations will be integrated into the Friends Provident business acquired by Resolution in November 2009. Axa’s wealth business, Axa Insurance, Axa PPP Healthcare and Bluefin ...