5 Things The Employee Benefits World Taught Us This Week – March 6th
We want to keep those in the HR world up to date on all things employee benefits so every Friday we summarise the week’s news in employee benefits right here in this column.
1. Steve Webb Has Told Businesses That Auto Enrolment Compliance Isn’t The End
The Pensions Minister Steve Webb, speaking at the Employee Benefits Connect event warned employers that simply staging and complying with auto enrolment doesn’t mean that the auto enrolment process is completely over. He recommended higher contribution rates, saying: “Employers might say that presumably that’s the end, but it isn’t the end, because you hear it said very often, 8% is not enough for most staff.”
The onus is on both employers and staff, therefore, to contribute even more than the minimum in order to achieve a sufficient level of saving for retirement.
2. Average Of 5% Contributed By Staff
Speaking of pension contribution levels, research by the CIPD has found that the average employee contribution to workplace pension schemes is 5% of salary. The survey also asked whether or not employees think they should contribute 10% or more and 43% of respondents agreed.
3. More Zero Hours Contracts
Another interesting figure to come out in the last week is one from the Office for National Statistics which has shown that zero hour contracts are on the rise. By the end of 2014, 2.3% of the workforce were employed on these contracts – up from 1.9% the year previously.
4. Pension Scheme Membership Up
Research from the Office for National Statistics again, this time showing that pension scheme membership increased in 2014. 59% of employees now belong to a corporate pension, up from 50% the year before and it is the highest figure since such records began back in 1997.
5. Life Insurance Can Now Cover Loch Ness Monster Death
Yes, that’s right. Virgin Money’s latest life insurance package now covers against death by the Loch Ness Monster, by Daleks or by Godzilla. The insurer says that they will pay out for anyone killed in those above manners.
While the insurance is partly publicity stunt, there is a more serious point as well as the company aims to raise awareness of how little most people care about life insurance in the first place.