admin, Author at Pension Policy International

15AprApril 15, 2021

2021 Corporate Pension Funding Study

By Zorast Wadia, Alan H. Perry, Charles J. Clark The 2021 edition of the Milliman Corporate Pension Funding Study (PFS) is our 21st annual analysis of the financial disclosures of the 100 U.S. public companies sponsoring the largest defined benefit (DB) pension plans. These 100 companies are ranked highest to lowest by the value of their pension assets that are reported to the public as of the end of fiscal year 2020, to shareholders, and to the U.S. federal agencies...

April 15, 2021

Books, System Sustainability2021, Funding, Investment, Occupational Pensions, US

15AprApril 15, 2021

Financial Inclusion Through Fintech in the Digital Economy

By Eunsook Seo, Kyeong-Won Yoo Since the 2008 global financial crisis, including the recent COVID 19 pandemic, low interest rates and low economic growth have continued around the world. In spite of this low interest rate trend, as the economic downturn prolongs, there is a situation of concern called the “new normal” of low interest rates and low economic growth, and low prices. In this new normal economic structure, the rapid progress of aging is increasing the necessity and desire...

April 15, 2021

Articles, Innovation, Labor Market, System Sustainability2020, Digital Financial Services, Financial Inclusion, Informal Sector

15AprApril 15, 2021

Involuntary unemployment in overlapping generations model due to instability of the economy and fiscal policy

By Yasuhito Tanaka The existence of involuntary unemployment advocated by J. M. Keynes is a very important problem of the modern economic theory. Using a three-generations overlapping generations model, we show that the existence of involuntary unemployment is due to the instability of the economy. Instability of the economy is the instability of the difference equation about the equilibrium price around the full-employment equilibrium, which means that a fall in the nominal wage rate caused by the presence of involuntary...

April 15, 2021

Articles, Labor Market2021, Aging, Political economy

15AprApril 15, 2021

Do Required Minimum Distribution 401(K) Rules Matter, and for Whom? Insights from a Lifecycle Model

By Vanya Horneff, Raimond Maurer, Olivia S. Mitchell Tax-qualified vehicles helped U.S. private-sector workers accumulate $25Tr in retirement assets. An often-overlooked important institutional feature shaping decumulations from these retirement plans is the “Required Minimum Distribution” (RMD) regulation, requiring retirees to withdraw a minimum fraction from their retirement accounts or pay excise taxes on withdrawal shortfalls. Our calibrated lifecycle model measures the impact of RMD rules on financial behavior of heterogeneous households during their worklives and retirement. We show that proposed...

April 15, 2021

Articles, Pension design, SavingsIncome, Taxation, US 2021

15AprApril 15, 2021

México. Retiros de Afore por desempleo crecieron 64% en marzo

En marzo pasado los retiros parciales por desempleo que hicieron los trabajadores de su Administradora de Fondos para el Retiro (Afore) se incrementaron 64 por ciento respecto al mismo mes de 2020, según datos oficiales. Abraham Vela, presidente de la Comisión Nacional del Sistema de Ahorro para el Retiro (Consar), dio a conocer que en el tercer mes de 2020 se retiraron por concepto de desempleo mil 888 millones de pesos, cifra superior a los mil 150 millones de un...

April 15, 2021

Noticias2021, América Latina, COVID-19, Mexico, Retiro de Fondos

15AprApril 15, 2021

Perú. MEF propondrá observar ley que permite retiros de fondos de AFP y CTS

El ministro de Economía y Finanzas, Waldo Mendoza, anunció hoy que su portafolio propondrá ante el Consejo de Ministros, observar la ley aprobada en el Congreso que permite el retiro de fondos de las AFP y de la CTS, porque tienen visos de inconstitucionalidad. Leer también Proyecto del BID en Perú logró estimular el ahorro para el retiro con una app El Congreso aprobó el texto sustitutorio que faculta el retiro de hasta 17,600 soles (4 UIT) a todos los afiliados...

April 15, 2021

NoticiasAmérica Latina, Perú, Regulación, Retiro de Fondos

15AprApril 15, 2021

US Corporate Pension Funding Nudges Higher in FY 2020

Robust returns of 13.4% for the 100 largest corporate pension plans in the US offset a 67-basis-point drop in the discount rate to raise the plans’ funded ratio to 88.4% last year from 87.5% at the end of 2019, according to consulting firm Milliman’s “2021 Corporate Pension Funding Study.” The funded levels rebounded strongly during the second half of the year after the bottoming out at 81% in July. “Corporate pensions demonstrated their resilience in 2020 amidst a turbulent year of...

April 15, 2021

News, Slider2021, COVID-19, EU, Sustem Sustainability

15AprApril 15, 2021

The Macro Challenges of Population Aging

A new paper jointly released today by The Concord Coalition and the Global Aging Institute (GAI) warns that the aging of the U.S. population not only threatens to overwhelm the budget, but could also usher in a future of permanently slower economic growth and diminished geopolitical stature. The paper, entitled The Macro Challenges of Population Aging, is the fifth in a series of issue briefs on the aging of America called The Shape of Things to Come. Read also Spain....

April 15, 2021

News, Slider2021, COVID-19, DC schemes, Regulation, US

15AprApril 15, 2021

Are Dutch pensions hesitant to absorb direct real estate write-offs?

Dutch pension funds reported substantially higher returns on their direct real estate returns in 2020 than on their investments in listed real estate equities during the same period. Despite the heavy losses in segments of the real estate market as a result of the coronavirus lockdowns, the value of Dutch pension funds’ direct real estate investments as reported to pensions regulator De Nederlandsche Bank (DNB) increased by 1% to €83.5bn compared with a reported decrease of 7% to €56.7bn for listed real estate. The...

April 15, 2021

News, Slider2021, COVID-19, Investment, Netherlands

14AprApril 14, 2021

Chile. Comisión de Constitución aprueba un tercer retiro de fondos de pensiones

La Comisión de Constitución aprobó una indicación sustitutiva, presentada por diputados de la oposición, a los dos proyectos de reforma constitucional (boletines 14073 y 14093) que establecen un retiro de fondos previsionales a través de una modificación a las normas permanentes de los capítulos 4 y 5 de la Carta Fundamental, que requiere para su aprobación en Sala de un quorum de 3/5 (92 votos a favor). Leer también Gremio internacional de AFP repasó los cambios a los sistemas de...

April 14, 2021

Noticias2021, América Latina, Chile, COVID-19, Retiro de Fondos

April 2021