July 2020

28Jul

‘We’re Going for More’ Say Chileans After Pensions Reform Crosses Free Market Rubicon

Within minutes of Chilean lawmakers approving a bill that allows citizens to draw down 10% of their pensions to help make ends meet during the coronavirus pandemic, a phrase started trending on Twitter: "We're going for more." The bill's authors insisted the raid on the private retirement system introduced in the 1980s under the Augusto Pinochet dictatorship was just an emergency measure but as it snowballed in popularity, so have the ambitions of those backing it. Lawmakers who voted...

July 28, 2020
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28Jul

US. DOL’S ESG proposal would hurt retirement accounts

The Department of Labor lost an opportunity to encourage investors to support causes that they hold close to their hearts with a proposed rule regarding the investment choices they’re allowed in their retirement accounts. It’s a proposal that also could end up damaging Americans’ retirement security long-term if allowed to become part of the Employee Retirement Income Security Act. The June 23 proposal reaffirmed standard thoughts on fiduciary responsibilities that suggest only financial risk and returns can be considered...

July 28, 2020
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28Jul

UK. Pension savers remain cautious during Coronavirus pandemic

The number of pension savers choosing to drawdown money from their pension fell by 42% in April 2020 compared to the same month last year. The latest data published by trade body the Association of British Insurers (ABI) has also shown the number of people taking a tax-free lump from their pension more than halved (-53%), while those withdrawing their entire pension fell by 30%. Figures for March 2020 had already started to show this cautious trend, as 15%...

July 28, 2020
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28Jul

India. Govt employees retiring during pandemic will get ‘provisional pension’

The payment of 'provisional pension' will initially continue for a period of six months from the date of retirement and the period of 'provisional pension' may be further extended up to one year in exceptional cases. Government employees retiring during Covid-19 pandemic will be receiving “provisional" pension till their regular Pension Payment Order (PPO) is issued and other official formalities are completed, the Ministry of Personnel, Public Grievances & Pensions said on Monday. MoS Personnel, Public Grievances & Pensions,...

July 28, 2020
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27Jul

Will post-Brexit pensions be driven by purpose or profit?

Is the City facing into a more purposeful future driven by greater transition to sustainable incomes for its populous, or a new panacea of deregulation to compete globally? Read also: UK pension scheme NEST tightens climate change policy. Direction needs momentum, which is contingent on politics and trade deals. Indeed, many hope the UK might emerge as a fiduciary leader; yet the certainty of whether the UK deregulates or gold-plates in a post-lockdown-post-Brexit world is capricious. For example, the key...

July 27, 2020
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27Jul

Gig and older workers need to take control of their retirement

Several retirement trends have been brought into focus by the COVID-19 pandemic. One of the most disturbing is the number of workers between 50 and 65 who are in jobs without retirement benefits. Today half of all workers don’t have access to a work sponsored retirement plan. Read also US. DOL’S ESG proposal would hurt retirement accounts According to a recent study by Alicia H. Munnell and her colleagues at the Center for Retirement Research at Boston College, one-fifth of...

July 27, 2020
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27Jul

Japanese Trust Funds Align with Global Trends on FX Settlement Risk

Trust funds in Japan have started focusing on mitigating FX settlement risk, to which they have long been exposed. This article explains the change in focus and the factors behind this. Following 2013 guidance from the Basel Committee on Banking Supervision (BCBS) recommending the use of payment-versus-payment (PvP) settlement and netting where appropriate, Japan’s Financial Services Agency (FSA), along with the Bank of Japan (BoJ), convened Japanese wholesale FX market participants to promote PvP settlement and assist the industry...

July 27, 2020
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24Jul

Social Protection for All: The Next Step for the Malaysian Welfare

By Evangelos Koutronas This report aims to support policymakers, program designers, and evaluators to develop a comprehensive social protection mechanism. The past decade has seen a marked spike in policy momentum around the importance of social protection policies and programs yet there has been very little attention to social protection’s role in tackling experiences of poverty and vulnerability. Social protection is recognized as a key policy tool to help achieve the Malaysia Development Goals; as a policy approach underpinned by...

July 24, 2020
Adequacy, Articles,
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24Jul

Relabeling, Retirement and Regret

By Jonathan Gruber, Ohto Kanninen, Terhi Ravaska Focal retirement ages are a central feature of Social Security programs around the world, and provide a potentially powerful tool for policy makers who are interested in reforming retirement systems to address the growing funding shortfalls. But these tools often come hand in hand with significant changes in the financial structure of Social Security that can have independent, and potentially deleterious, impacts on retirees. In this paper, we use a major reformulation...

July 24, 2020
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24Jul

Ticking Time Bomb: The Hidden Pension Deficit’ – Critical Study of Post Crisis Reforms and Financial Viability of Current Pension System

By Bhanu Laur Management of pension schemes has always been a difficult task for governments and the challenges that governments are facing today are growing faster than many countries anticipated. Pension plans have evolved overtime as public and private sector schemes slowly switching to PAYG system of funding and the uncertainty over current contributors’ future is growing. However, the recent financial crisis turned attention towards this hidden deficit of the countries where pension funds around the world lost significant...

July 24, 2020
Articles, System Sustainability,
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