January 2022

US. What the Pension Protection Act has taught us about saving for retirement

They say that hindsight is 20/20. And as we look back on the Pension Protection Act, which was passed just over 15 years ago, it’s clear that our understanding of the law has, well, cleared up. Commendably, this legislation was crafted with the best of intentions — to help more Americans save for retirement — but its unintended consequences made a greater impact for too long. Among other provisions, the Pension Protection Act gave plan sponsors the power to automatically enroll...

UK. MP seeks to extend auto-enrolment to 18-year-olds

Proposals that would see working 18-year-olds and low earners automatically save into a pension are being put before parliament this week. Read also UK. Expanding auto-enrolment could cost employers more, experts warn Conservative MP Richard Holden tabled a motion in the House of Commons on Wednesday to extend auto-enrolment in this way. Read also UK. FTSE 350 DB pension deficit falls by £28bn; ‘looming risks’ ahead The proposal looks to boost the pension pots of 18 to 22-year-olds and those who either work...

US. NCPERS Proposes a New Tool to Make Public Pension Plans Fiscally Sustainable

Public pensions can be made and kept sustainable for the long haul by incorporating a new tool— sustainability valuation—into funding policies and practices, according to a new study by the National Conference on Public Employee Retirement Systems. Pension systems can use sustainability valuation to monitor their fiscal status on a continuing basis, gaining insights that would enable them to identify fiscal adjustments needed to stabilize pensions long-term, the study found. The study by Michael Kahn, NCPERS director of research, delineates...

Taiwan fund to issue $2.3 bln climate change pension mandate, Asia’s first -official

Taiwan's largest pension fund is set to issue what a top official said is Asia's first climate change-focused stock mandate, worth $2.3 billion, amid mounting pressure for the global financial sector to support green investing. The open-tender bidding process for asset managers seeking to be involved in the Bureau of Labor Funds mandate will commence in the first quarter of the year, Liu Liju, deputy director general at the fund, told Reuters in an interview. The fund has Taiwanese $5.5 trillion...

España. El Gobierno podría adelantar la edad de jubilación a 60 años a estos profesionales

España. El Gobierno podría adelantar la edad de jubilación a 60 años a estos profesionales

Pese a que las líneas principales de trabajo del ministro José Luis Escrivá y la reforma de las pensiones van encaminadas a alargar las carreras profesionales, hacer coincidir las edades legal y efectiva de jubilación y consolidar la edad de jubilación a los 67 años, el Gobierno se ha mostrado dispuesto a permitir que algunos profesionales se puedan jubilar a los 60 años sin penalización económica. Se trata de un privilegio del que ya gozan algunas profesiones por su naturaleza...

ESG Investing Is Not Sustainable Investing

There’s a lot of confusion in the marketplace regarding ESG (Environmental, Social, Governance) and Sustainable, sometimes known as SRI (Sustainable, Responsible, and Impact) investing. Many people think the two terms are interchangeable – I’m here to tell you that they aren’t. Blackrock BLK +0.4%, Vanguard, and other big investment houses are simply capitalizing on the growing interest in values-aligned investing. In fact, they have invested a significant amount of money in marketing ESG to have you believe that they are...

Avances y retos sobre la gestión corporativa en asuntos ASG en Latinoamérica

Por KPMG Desde su primera edición en 1993, el informe revela que desde entonces han ocurrido cambios drásticos en cuanto a la relevancia que han cobrado los aspectos ASG (ambientales, sociales y de gobierno corporativo) para las compañías en el contexto actual. Además de los resultados globales, presentamos un acercamiento especial al contexto latinoamericano, incluyendo información de Argentina, Brasil, Colombia, Costa Rica, Ecuador, México, Panamá y Perú. El documento entrega una visión detallada de las tendencias globales y regionales en sostenibilidad, a...

Los grandes debates en torno a los sistemas de pensiones

Por María Ascensión Morales Ramírez Después de los resultados evidenciados en el primer lustro del siglo XXI, en torno a las reformas en materia de pensiones de la década de los noventa y la aproximación entre las visiones antagónicas de los organismos internacionales protagonistas, se vislum-braba que las tendencias a futuro, serían, por un lado, modelos multipilares con un com-ponente contributivo mixto (reparto y capitalización individual) y, por otro lado, la revisión de los objetivos, principios, funciones y sostenibilidad del...

Dividendos demográficos y crecimiento económico en América Latina. Un equilibrio de trampa de ingresos medio y bajo

Por Ignacio Apella El objetivo del presente trabajo es estudiar el posible alcance de un equilibrio de trampa de ingresos medios y bajos para los países de América Latina debido a la transición demográfica. A partir de la utilización de datos de panel con 16 países durante el período 1970-2014 se identifica una contribución significativa del primer dividendo demográfico al crecimiento del PBI per cápita. Sin embargo, dada la dinámica de la tasa de fecundidad, existe un riesgo de alcance...

Financial health of largest U.S. corporate pension plans surges to highest level since financial crisis

The financial health of the nation’s largest corporate defined benefit pension plans improved significantly in 2021 as strong investment returns and rising interest rates help to drive their aggregate funded status to its best level since before the 2008 financial crisis, according to an analysis by Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company. Read also US. Pandemic’s impact on retirement savings varies by geography, gender and age Willis Towers Watson examined pension plan data for...