April 2018

16Apr

Spanish Pension: Adjusting Biological Life Expectancy To That Of Social Life

The IMF highlights that the Spanish population, like that of other developed economies, will age over the coming years. The number of pensioners is increasing faster than the number of active workers. So the average salary is beginning to come in at the same level or below that of the average pension. In 2007, the number of pensioners stood at 6.4 million and in 2017 9.6 million. The Social Security forecasts that between 2017 and 2022, the deficit between contributions...

April 16, 2018
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16Apr

Why Do Defaults Affect Behavior? Experimental Evidence from Afghanistan

By Joshua Blumenstock, Michael Callen, Tarek Ghani We report on an experiment examining why default options impact behavior. By randomly assigning employees to different varieties of a salary-linked savings account, we find that default enrollment increases participation by 40 percentage points—an effect equivalent to providing a 50% matching incentive. We then use a series of experimental interventions to differentiate between explanations for the default effect, which we conclude is driven largely by present-biased preferences and the cognitive cost of thinking...

April 16, 2018
Articles, Labor Market, Savings, ,
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15Apr

Italy: Toward a Growth-Friendly Fiscal Reform

By Michal Andrle (International Monetary Fund (IMF)), Shafik Hebous (International Monetary Fund), Alvar Kangur (International Monetary Fund (IMF)), Mehdi Raissi (International Monetary Fund (IMF) - Asia and Pacific Department) Published in late 2017, the Italian medium-term fiscal plan aims to achieve structural balanceby 2020, although concrete, high-quality measures to meet the target are yet to be specified.This paper seeks to contribute to the discussion by: (i) assessing spending patterns to identifyareas for savings (ii) evaluating the pension system (iii) analyzing the scope for...

April 15, 2018
Articles, Regulation, ,
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15Apr

On Welfare Effects of Increasing Retirement Age

By Krzysztof Makarski (National Bank of Poland; Warsaw School of Economics (SGH)) & Joanna Tyrowicz (National Bank of Poland; University of Warsaw) We develop an OLG model with realistic assumptions about longevity to analyze the welfare effects of raising the retirement age. We look at a scenario where an economy has a pay-as-you-go defined benefit scheme and compare it to a scenario with defined contribution schemes (funded or notional). We show that, initially, in both types of pension system schemes...

April 15, 2018
Aging, Articles, Labor Market, , ,
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13Apr

Colombia. Así es la ruta pensional que propone Asofondos

Cada vez es más recurrente la discusión sobre qué hacer con el sistema pensional actual en Colombia. La máxima es que el modelo existente sí debe modificarse sustancialmente a causa de las deficiencias que hay en temas de cobertura, así como el cambio demográfico que experimentan los países de la región en edades. Cambios que sin duda modificarán la fuerza laboral de los países de esta parte del mundo. La Asociación Colombiana de Administradoras de Fondos de Pensiones y de...

April 13, 2018
Noticias
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13Apr

Chile. Diputados de ChileVamos presentan indicaciones que mejoran proyecto de incentivo al retiro municipal

Tres indicaciones para mejorar los beneficios que contiene el texto original del proyecto de ley de incentivo al Registro Voluntario de los Funcionarios Municipales, ingresó el diputado miembro de la comisión de gobierno interior de la Cámara Baja Bernardo Berger (RN). Las indicaciones fueron presentadas por el legislador por Los Ríos y ex alcalde de Valdivia, junto a Celso Morales, Renzo Trizotti y Andrés Longton, en el marco del tratamiento de la iniciativa que desde Marzo se está revisando en...

April 13, 2018
Noticias
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13Apr

US. Home Depot hit with ERISA class action claiming retirement plan mismanagement

Two former Home Depot Inc workers on Thursday filed a proposed class action in Atlanta federal court seeking $140 million in damages for the alleged mismanagement of the company’s employee retirement plan. The workers alleged Home Depot violated its fiduciary duties under the Employee Retirement Income Security Act by selecting poorly performing funds, allowing advisors to charge unreasonable fees and by not identifying a kickback scheme between an advisor and the plan’s recordkeeper. Read More: Reuters

April 13, 2018
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13Apr

Malta. Pension schemes, funds licence extension

BOV Asset Management Ltd (BOVAM) has been granted the licence to provide investment management for personal retirement schemes, occupational retirement schemes and retirement funds in terms of the Retirement Pension Act. BOV Asset Management Limited requested the extension of the licence following the legal notice that was issued last year intended to promote voluntary occupational pension schemes in Malta. In the 2017 Budget, the government announced the introduction of various fiscal incentives to encourage employers to set up voluntary occupational pension...

April 13, 2018
News
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13Apr

US. Association Retirement Plans – An Idea Whose Time Has Come

Recent press accounts have noted that two educational institution associations recently established group retirement plans for their employer members. Such association retirement plans offer potential cost savings and administrative ease to participating employers, and we expect to see more of them in the future. An Association Retirement Plan – What Is It? An association retirement plan is a single retirement plan – either a 403(b) plan (for 501(c)(3) organizations) or a 401(k) plan (for other types of organizations) – that is...

April 13, 2018
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13Apr

China. Shanghai to trial commercial pension model

Shanghai will launch a pilot program to offer tax benefits to entice the city's aging population to buy commercial pension insurance from May 1, said a statement by the Ministry of Finance yesterday. Under the program, buyers of commercial pensions will enjoy tax exemption of up to 1,000 yuan (US$159) of their monthly income. The pilot stipulates that the eligible commercial pension must be invested in low-risk or risk-free areas, and needs to be approved by the ministry, according to the...

April 13, 2018
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