April 2017

24Apr

Is retirement problem the same as a savings problem?

HOUSE Resolution 67, which Donald Trump signed last week, rolls back a rule that the Labor Department finalised late last year, which would have made it easier for cities and counties to run retirement savings plans for citizens who couldn’t get them through work. It is an odd choice for Republicans to kill plans that would encourage private, voluntary, tax-deferred saving, which they tend to approve of. But a trade group for investment funds opposes the city-run retirement plans....

April 24, 2017
News, OP Ed
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24Apr

Disarming Puerto Rico's Pension Time Bomb

By Richard J. Cooper, Luke A. Barefoot, Daniel J Soltman & Antonio Pietrantoni (Cleary Gottlieb Steen & Hamilton LLP) With the long-delayed commencement of negotiations between the new government of the Commonwealth of Puerto Rico (the “Commonwealth”) and its financial creditors finally underway, and the expiration of the existing stay on creditor actions looming, much of the financial press’ attention over the next several weeks will undoubtedly be focused on whether the government of Puerto Rico can reach an out...

April 24, 2017
Articles, Regulation, System Sustainability
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24Apr

Disarming Puerto Rico’s Pension Time Bomb

By Richard J. Cooper, Luke A. Barefoot, Daniel J Soltman & Antonio Pietrantoni (Cleary Gottlieb Steen & Hamilton LLP) With the long-delayed commencement of negotiations between the new government of the Commonwealth of Puerto Rico (the “Commonwealth”) and its financial creditors finally underway, and the expiration of the existing stay on creditor actions looming, much of the financial press’ attention over the next several weeks will undoubtedly be focused on whether the government of Puerto Rico can reach an out...

April 24, 2017
Articles, Regulation, System Sustainability
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24Apr

Ethnic and Racial Disparities in Saving Behavior

By Mariela Dal Borgo (Bank of Mexico) Using pre-retirement data from the Health and Retirement Study, I find that median saving rates are 9p.p. larger for Whites than for Mexican Americans and Blacks. Two-thirds of each gap reflect changes in asset prices and a third reflects households’ active saving decisions. Since Blacks save more in pensions, only the racial gap disappears with the inclusion of retirement assets. Both saving gaps are mostly explained by differences in income and, especially for...

April 24, 2017
Articles, Labor Market, Savings
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24Apr

Retirement Security: The Importance of Conflict-Safe Advice

By Andrew L. Oringer (Dechert LLP) This article is adapted from testimony given by Andrew L. Oringer on March 24, 2009 before the House Subcommittee on Health, Education, Labor and Pensions. The testimony was given during the Subcommittee's hearings on the regulations of the US Department of Labor regarding exemptions for certain investment advice. (more…)

April 24, 2017
Articles, Pension design, Regulation, System Sustainability, ,
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24Apr

Expertos critican idea de Velasco de reemplazar AFP

Una serie de críticas recibió la propuesta de Andrés Velasco y Jorge Errázuriz de reemplazar el actual sistema de recaudación de cotizaciones y posterior inversión que hacen las AFP, por dos organismos separados y con más actores en la gestión del patrimonio. En una columna de opinión publicada ayer en La Tercera, el ex ministro de Hacienda, junto al actual precandidato a senador por la Quinta Región, esbozaron una fórmula para terminar con el desprestigio y “sospecha” que generan las...

April 24, 2017
Noticias
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24Apr

México. “Propuesta de elevar aportaciones para el retiro en Chile es valiente”

Para Carlos Ramírez, presidente de la Comisión Nacional del Sistema de Ahorro para el Retiro (Consar), la propuesta de la presidenta chilena, Michelle Bachelet, de incrementar las aportaciones del ahorro para el retiro de 10 a 15% es una decisión valiente. “El aumento de la contribución de 5 puntos porcentuales es una decisión valiente que debemos valorar y considerar hacia el futuro para México”, expuso en entrevista y ante el hecho de que en el país las aportaciones para el...

April 24, 2017
Noticias
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24Apr

Labour joins calls for stronger pension protections after master trust closes

Labour has joined calls for greater protections to be given to members of workplace pension schemes, after New Model Adviser® revealed how one such scheme closed to new members. Our story raised alarm bells after warnings were made last year by then pensions minister Ros Altmann that master trusts had ‘shockingly’ been set up with no customer protection regime in place. Though protections are now in the pipeline, pension scheme members’ savings could be put in peril by further master trust...

April 24, 2017
News
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24Apr

Are Asia’s Insurers and Insured Prepared for Aging Boom?

The Asia-Pacific (APAC) region is aging faster than anywhere else in the world with an expected increase of 200 million elderly people (aged 65 and above) by 2030. The aging population is driving an increase in noncommunicable diseases (NCD)—such as diabetes, cancer and heart disease—and ultimately leading to a substantial increase in insurance premiums that could threaten the affordability and sustainability of the insurance model. Increasing NCD Prevalence and its Impact Asian societies are aging at an unprecedented pace and scale,...

April 24, 2017
News, OP Ed
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24Apr

Trinidad & Tobago. Payment of pensions in timely manner

The Ministry of Public Administration has announced a new system intended to ensure the timely delivery of pensions to public officers. In a news release yesterday, Public Administration and Communications Minister Maxie Cuffie said Cabinet has approved and confirmed a note that deals with a backlog of pensions in the public service and the Government is putting measures in place to prevent a recurrence of the problem. Cuffie also announced the new system in Parliament during debate on the Fire Service...

April 24, 2017
News
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