November 2021
13Nov

How Will COVID-19 Affect Pensions for Noncovered Workers?

By Jean-Pierre Aubry, Kevin Wandrei, Laura Quinby Federal law allows certain state and local government employees to be excluded from Social Security if they are covered by an employer pension of sufficient generosity. As a result, approximately one-quarter of state and local workers are not covered by Social Security on their current job. Before COVID-19, these “FICA replacement plans” all satisfied the letter of the law in terms of providing benefits of sufficient generosity. This study has three aims. The...

November 13, 2021
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13Nov

Fiduciary Duty, Social Conscience, and ESG Investing by a Trustee

By Max M. Schanzenbach, Robert H. Sitkoff This chapter, prepared for the 2021 Annual Heckerling Institute on Estate Planning, examines the law and economics of environmental, social, and governance (ESG) investing by a trustee. Trustees of pensions, charities, and personal trusts invest tens of trillions of dollars of other people’s money subject to a sacred trust known in the law as fiduciary duty. Recently, these trustees have come under increasing pressure to use ESG factors in making investment decisions. ESG investing...

November 13, 2021
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12Nov

¿De qué va el plan de reestructuración de la deuda pública de Puerto Rico y por qué se protesta?

Los puertorriqueños tuvieron la oportunidad de expresar sus temores acerca de un enorme plan de reestructuración de la deuda pública ante una jueza con poder de decisión sobre el futuro económico de Puerto Rico. Tras meses de disputas entre abogados, economistas y tenedores de bonos, la sesión fue una ocasión para que jubilados, amas de casa y otros compartieran sus preocupaciones de que el plan pueda asfixiar a las pequeñas empresas, congelar las pensiones o causar más dificultades en un...

November 12, 2021
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12Nov

El gobierno y Grupo México acuerdan fondo de pensiones para mineros de Cananea

El gobierno federal y la empresa minera Grupo México firmaron este jueves un convenio para crear un fondo de pensiones para trabajadores de Cananea, en el estado de Sonora. El acuerdo fue suscrito por la secretarías del Trabajo (STPS) y de Gobernación (Segob) y por el Instituto Mexicano del Seguro Social (IMSS), en el marco del Plan de Justicia para Cananea. Javier García de Quevedo, vicepresidente de Grupo México, fue quien firmó el convenio en favor de los extrabajadores mineros de...

November 12, 2021
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12Nov

U.S. Steel to Transfer About $284 Million of Pension Obligations

United States Steel Corp. said it will transfer about $284 million of pension plan obligations via a purchase of annuity contracts from two units of Legal & General Group PLC. The purchase results in the transfer of administrative and benefit-paying responsibilities for about 17,800 U.S. retirees and beneficiaries. The steel company said "this transaction is yet another meaningful step in strengthening the company's balance sheet and further de-risking our pension plan, a plan that remains more than 100% funded and is...

November 12, 2021
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12Nov

UK. DC schemes urged to offer more pension choices at retirement

Only 11 per cent of defined contribution (DC) pension schemes offer members a full suite of options to access funds at retirement, despite this delivering the best outcome for members, research from XPS Pensions Group has found. XPS's DC Member Outcomes Report revealed that members with access to a full range of flexibilities at retirement, including access to flexible drawdown, a cash lump sum or an annuity, are more likely to make choices that allow them to maximise the funds...

November 12, 2021
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12Nov

Build a Solid Risk Management Road Map

“The COVID pandemic itself didn't fundamentally change how risk management for pension plans should be addressed, but it did confirm why it’s important to have a sound risk management framework,” said Francois Pellerin, multi asset-class strategist at Fidelity Investments. “Plan sponsors who adopted the risk management best practices we’ve been preaching were able to adapt to market changes faster and emerge from the crisis in better shape than those who didn’t adopt those practices,” he said, speaking at Pensions...

November 12, 2021
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12Nov

Experts say the 4% rule, a popular retirement income strategy, is outdated

Market conditions are pressuring the 4% rule, a popular rule of thumb for retirees to determine how much money they can live on each year without fear of running out later. Withdrawing money from one’s nest egg is among the most complex financial exercises for households. There are many unknowns — the length of retirement, one’s spending needs (health costs, for example) and investment returns, to name a few. The 4% rule is meant to yield a consistent stream of annual...

November 12, 2021
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11Nov

México. Reportan Afore plusvalías por 73 mil 963 mdp: Consar

Las administradoras de fondos para el retiro (Afore) consiguieron plusvalías para los trabajadores por 73 mil 963 millones de pesos, de acuerdo con información de la Comisión Nacional del Sistema de Ahorro para el Retiro (Consar). Con lo anterior, el ahorro pensionario de los trabajadores se recuperó de la minusvalía de 59 mil 883 millones de pesos que registró en septiembre pasado. De esta forma, según estadísticas del organismo regulador, de enero a octubre de 2021, las 10 administradoras que operan...

November 11, 2021
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11Nov

Panamá. Sin definirse sostenibilidad de las pensiones. La OIT hará informe sobre finanzas de la CSS

El director general de la Caja de Seguro Social (CSS), Enrique Lau Cortés indicó que existe gran preocupación por la sostenibilidad del fondo de pensiones, ‘pero juntos podemos llegar a un gran acuerdo. Confió en que nosotros los panameños seamos capaces y superar interés personales o sectarios y lograr una solución integral para darle sostenibilidad al fondo de pensiones’, puntualizó. El Subsistema Exclusivo de Beneficio Definido es el que está con una seria afectación de solvencia, por lo que expertos...

November 11, 2021
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