September 2022

With Interest Rates Rising, Companies Look to Unload Pension Liabilities

The funding status of defined-benefit pension plans has been lifted by rising interest rates, which are expected to increase further Rising interest rates are boosting corporate pension plans, providing finance chiefs with an option to lighten their companies’ balance sheets and transfer obligations to insurers. The U.S. central bank has raised interest rates five times this year as it battles persistent high inflation, including last week when it opted for the third consecutive 0.75-point interest-rate increase and indicated further rate action. When...

Pensions in Egypt increased by 50% in recent years: Social solidarity minister

Pensions in Egypt have increased over the past three years by nearly 50 percent, and the minimum pension currently is EGP 916 per individual, Egypt's Minister of Social Solidarity Nevine El-Qabbaj said on Wednesday. El-Qabbaj made the remarks during the launch of the activities of the 6th Arab Pensions Conference that was held under the theme ‘Arab Pensions Outlook 2050 – Change and Opportunity’ in Sharm El-Sheikh. Pension systems play an important role in the Arab world and globally in providing...

17.5% of South Korea’s population aged over 65 and older in 2022

Data show that in South Korea's rapidly aging society, people aged 65 and older made up 17.5 percent of the country's population this year. According to Statistics Korea, the number of senior citizens exceeded 9 million this year for the first time. The agency projects that seniors will account for 20 percent of the population, making it a super-aged society, in 2025. At that pace, it will have taken only seven years for the country to go from an aged society to...

México. Las afores deberán capacitar a su personal en materia de ASG

La Consar publicó en el Diario Oficial de la Federación que las afores ya tienen la obligación de contar con un programa de capacitación contínua para su personal en materia de los principios Ambientales, Sociales y de Gobernanza (ASG). La Comisión Nacional del Sistema del Ahorro para el Retiro (Consar) publicó en el Diario Oficial de la Federación (DOF) que las administradoras de fondos para el retiro (afores) ya tienen la obligación de contar con un programa de capacitación contínua...

Perú. AFP: Se acentúa caída de rentabilidad de mayoría de fondos

En agosto el retroceso fue mayor debido a la inflación y la subida de tasas de interés a nivel mundial. La rentabilidad del fondo 2, donde se encuentra el 91%, cayó hasta 12,82%. La volatilidad de los mercados internacionales, durante las últimas semanas, ha afectado una vez más negativamente la rentabilidad de los fondos de las administradoras de fondos de pensiones (AFP). Los fondos 1, 2 y 3 acumulan caídas en lo que va del año. Desde agosto, se acentuó la...

Chile. Reportan que todos los multifondos de pensiones anotan pérdidas en lo que va de septiembre

Según el boletín de Ciedess, en lo que va de 2022 (enero a septiembre) los fondos más riesgosos, A y B, registran caídas de más del 10%; mientras que el E obtiene una ganancia de casi 2%. De acuerdo a la consultora, en medio de la discusión por la reforma de pensiones, los resultados negativos en los instrumentos de renta variable local y extranjera y las presiones inflacionarias a causa de la pandemia, de la escalada del conflicto Rusia-...

México. Afores bajan inversiones en renta variable en agosto

Las administradoras de fondos para el retiro prefieren invertir en valores del gobierno, donde destinan 51.16% de todos los recursos. Las Administradoras de Fondos para el Retiro (Afores) redujeron sus inversiones en renta variable nacional e internacional durante agosto en comparación con julio. Alejandro Padilla, director general adjunto de Análisis Económico y Financiero en Banorte, dijo que dicha disminución se explicó por la toma de utilidades en la mayoría de los índices accionarios en el octavo mes del año. “El sentimiento de...

UK pensions hit with £100m margin calls as gilts and sterling slide

At least three LDI managers request emergency capital as others consider unwinds to avoid default. UK pension funds have been hit with variation margin calls of as much as £100 million ($107 million) each, after sharp falls in gilts and sterling pushed mark-to-market valuations on derivatives and leveraged repo positions heavily against them. Simeon Willis, chief investment officer of consultancy XPS Pensions Group, says he knows of three different fund managers running pooled pension portfolios that have requested emergency capital...

China to allow deferrals of gov’t-levied charges, tax concessions for private pensions

China will allow market entities to defer payments of certain government-levied charges to further reduce financial burdens, and offer tax concessions for private pension schemes, according to a State Council executive meeting. At the meeting, chaired by Chinese Premier Li Keqiang on Monday, decisions were also made to enhance government services, ensure a bumper autumn harvest with improved rural infrastructure, and promote the development of the self-employment sector. Payments of certain government-levied charges and deposits will be temporarily deferred to further...

Analysis of American Workers Shows Retirement Plan Type Influences Spending Habits

A new report by the Public Retirement Research Lab and JP Morgan demonstrated that public-sector workers whose primary retirement account is a defined benefit account tend to spend a higher ratio of their earnings than those with a defined contribution account. Read also With Interest Rates Rising, Companies Look to Unload Pension Liabilities The PRRL is a collaboration of the Employee Benefit Research Institute and National Association of Government Defined Contribution Administrators. They combined their datasets on public employees with defined...