admin, Author at Pension Policy International

21DecDecember 21, 2022

US. New Spending Bill Makes It Easier for Americans Saving for Retirement

After years of negotiation, lawmakers introduced a retirement security package as part of a $1.7 trillion omnibus spending bill early Tuesday. The package, referred to as SECURE 2.0, includes several provisions, such as expanding automatic enrollment in 401(k) and 403(b) plans, enhancing the tax credit for small businesses launching a retirement plan and allowing employers to make matching contributions to a 401(k) plan, 403(b) plan or SIMPLE IRA based on qualified student loan payments. The package combines three bipartisan bills from...

December 21, 2022

NewsRegulation, savings, US

21DecDecember 21, 2022

UK. Pensions regulator unveils consultation on defined benefit funding

A draft funding code of conduct and consultation on defined benefit (DB) pension schemes has been unveiled by The Pensions Regulator, requiring trustees to think carefully about risk management to improve security for their members. Under the draft code and consultation, schemes will be expected to set a long-term objective and a “journey plan” for achieving it. The regulator expects schemes will reduce their reliance on sponsoring employers as they reach maturity. The consultation requires trustees to raise the bar...

December 21, 2022

NewsFunding, Regulation, UK

21DecDecember 21, 2022

5 Takeaways on the State of ESG Investing

ESG investing is hot. But what does it actually deliver for society and for shareholders? For the past several years or so, major funds, managers, and institutional investors have been stocking their portfolios with investments in firms that claim to be engaged in positive environmental, social, and governance (ESG) activities. On the websites of actively managed funds, investors show giant banners touting a commitment to invest in firms working to make the world a better, safer place, says Aaron Yoon, assistant...

December 21, 2022

NewsESG, Investment

21DecDecember 21, 2022

Turn the Ship: The Moral Imperative and Legal Authority to Protect Retirees with Defaulted Student Loans from Social Security Offset

By: Johnson Tyler The U.S. Department of Education (ED) is not powerless when it comes to debt collection or defaulted borrowers. It both has the moral imperative and legal authority to stop seizing Social Security benefits from elderly (62+) borrowers in default. An underutilized law allows an agency to exempt an entire class of debtors from Treasury Offset, the debt collection process that leads to the reduction of Social Security payments. This paper explains the history of offset; why recent...

December 21, 2022

Articles, System Characterization2022, Social Security, US

21DecDecember 21, 2022

Inferring Occupation Arduousness from Poor Health Beyond the Age of 50

By: Vincent Vandenberghe In the absence of a direct description of occupation arduousness, this paper shows how it can be inferred from poor health beyond the age of 50. Using retrospective lifetime data from the Survey of Health, Ageing and Retirement in Europe (SHARE) including the respondents’ professional career described with ISCO 2-digit, this paper finds a statistically significant link between many occupations and the risk of poor health beyond the age of 50. Next, we quantify the relative contribution...

December 21, 2022

Aging, Articles, Labor Market2022, Europe, Health, Pension design

21DecDecember 21, 2022

International Comparative Analysis of Worker Age Distribution in the Service Industry

By: Donghee Lee The problem of youth unemployment has recently become one of the hottest issues in the South Korean economy. The unemployment rate of the youth, those aged 15 to 29, hit 9.0% in 2014, which is the highest on record since the Asian financial crisis in 1997. This raises concern because while the unemployment rate for all ages fell 0.2%p during 2010~2014, the youth unemployment rate rose 1.0%p in the same period. In addition, the Korean employment rate...

December 21, 2022

Articles, Labor Market2022, Aging, South Korea

20DecDecember 20, 2022

Declining US Natural Interest Rate: Quantifying and Qualifying the Role of Pensions

By: Jacopo Bonchi & Giacomo Caracciolo We develop a life-cycle model and calibrate it to the US economy to quantify and qualify the role of the public pension system for the past and future trend of the natural interest rate, the so-called r∗. Between 1970 and 2015, past pension reforms mitigated the secular decline in r∗, raising it by around 1%, mainly through the positive effect of a higher replacement rate. As regards the future, we simulate the demographic trends, expected...

December 20, 2022

Articles, System Characterization2022, Pension Management, Public Pensions, US

20DecDecember 20, 2022

Conversion from DB to DC: The EU Pension Custodian

By: Hans van Meerten Worldwide we see a move to DC schemes. Most – if not all countries – choose the operate DB next to DC. However, in The Netherlands, the legislator choose for so-called conversion: transforming 'old' DB- to 'new' DC. In 2011, the Dutch legislator introduced the so called 'Pension Custodian'. It could only be used for the Dutch 2nd pillar DC IORP, the PPI. This Pension Custodion should *not* be confused with the IORP II Custodian. However, with the implementation of...

December 20, 2022

Articles, Pension design2022, Defined Benefit, Defined Contribution, EU, Netherlands

20DecDecember 20, 2022

Spending Trajectories after Age 65: Variation by Initial Wealth

By: M Hurd & Susann Rohwedder There has been extensive research on the importance of saving for retirement and on tools to support the accumulation of retirement wealth. Much less attention has been paid to the decumulation phase, that is, the spending down of wealth following retirement. Understanding the decumulation phase requires information about the spending patterns of older households and how those patterns evolve with age. This study uses comprehensive longitudinal data on total household spending from a survey...

December 20, 2022

Articles, Pension design, Savings2022, Retirement security, US

20DecDecember 20, 2022

México. Monto traspasado entre afores cayó 54% anual en noviembre

El monto traspasado entre administradoras de fondos para el retiro (afores) sumó 18,974 millones de pesos en noviembre; esto significó una contracción anual de 54% en términos reales, reportó la Comisión Nacional del Sistema del Ahorro para el Retiro (Consar). Mientras que entre enero y noviembre del 2022, el monto total de traspasos ha sido de 340,937 millones de pesos, una disminución anual de 17.4% en términos reales, de acuerdo con datos de la Consar. Asimismo, es la contracción anual más...

December 20, 2022

Noticias, NoticiasMexico, Traspasos

December 2022