November 2019
08Nov

Robert C. Merton and the Science of Finance

By Zvi Bodie Starting with his 1970 doctoral dissertation and continuing to today, Robert C. Merton has revolutionized the theory and practice of finance. In 1997 Merton shared a Nobel Prize in Economics “for a new method to determine the value of derivatives.” His contributions to the science of finance, however, go far beyond that. In this essay I describe Merton’s main contributions. They include the following: 1. The introduction of continuous-time stochastic models (the Ito calculus) to the theory...

November 8, 2019
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08Nov

A Two-Step Mixed Pension System: How to Reinvent Social Security with the Help of Notional Accounts and Term Annuities

By Inmaculada Domínguez-Fabián,Pierre Devolder, Francisco del Olmo García, Jose A Herce The change in economic and sociodemographic reality, characterized by a continuous increase in longevity, the consequences of the economic crisis, and the lack of adequate adjustments of social security retirement pension systems everywhere, entails risks for workers and the social security systems themselves. Many reforms of public pension systems have been carried out in recent years, based on modifying system parameters and structural changes. Some reforms aim at...

November 8, 2019
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08Nov

México seguirá los pasos de Chile si no reforma el sistema de pensiones

Las protestas sociales en Chile no han cesado. Desde el 18 de octubre, los ciudadanos exigen al gobierno cambios de fondo, y uno de ellos es el sistema de pensiones, el cual fue emulado por México con la reforma a la Ley del IMSS de 1997. En este sentido, la Auditoría Superior de la Federación (ASF) indica que México requiere “una reforma integral a la brevedad” al sistema de pensiones de cuentas individuales, por el que las Afores administran...

November 8, 2019
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08Nov

Chile. Estudio asegura que si las AFP repartieran el 100%, de sus ganancias, cada afiliado recibiría $34.416

Según informaron las Administradoras de Fondo de Pensiones (AFP) a la Comisión para el Mercado Financiero, sus utilidades sumaron US$511 millones entre enero y septiembre de este año. La cifra se traduce en un incremento del 70% en relación al mismo periodo del año pasado. Al respecto, la ministra del Trabajo, María José Zaldívar, dijo en Emol TV que el proyecto de pensiones tiene medidas en que, por primera vez, “los afiliados podemos ser beneficiarios directos en las utilidades...

November 8, 2019
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08Nov

¿Recién graduado? Piensa en el último pago que recibirás (no sólo en el primero)

Mientras estaba sentado observando la graduación de mi hija, entre el mar de togas y birretes me pregunté: ¿cuántos estarán pensando en el último sueldo de su carrera? Ellos, con seguridad, estaban pensando en el primero. Pero yo trabajo en el segmento de pensiones, por lo que pensar en cómo las personas costearán la vida en su jubilación es una de mis grandes pasiones. La realidad es que sólo tenemos una suposición sobre lo que les espera a los...

November 8, 2019
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08Nov

US. Pensions Venture Into Risky Corners of the Market in Hunt for Returns

Some pension-fund managers are venturing further into unusual investment territory as this year’s plunge in bond yields makes it harder to find decent long-term returns. Read also US. Coal Mine Workers Pension “Death” Deserves An Autopsy Funds are dabbling in riskier asset classes, including private markets, real-estate projects, infrastructure financing and direct lending. Some are making riskier fixed-income bets, buying volatile assets such as 100-year Argentine government bonds. Others are going farther afield, investing in greenhouses and waste management. Read also...

November 8, 2019
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08Nov

South Africa. Retirement Rogues and the Casualties of Circumstance

There is a mountain of money, R42bn to be exact, sitting in unclaimed benefit schemes out there, just sitting there, getting fatter, which means money for jam for the fund managers, but doesn't afford any jam to the estimated four million people who own this stash of cash. Read also Ghana. Health sector pensioners assured of lump sum payments come January 2020 There are multiple reasons for there being an estimated total of R42-billion in benefits owed to more than...

November 8, 2019
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08Nov

Estonia. Social affairs minister: Limit second pillar voluntary withdrawals

The Ministry of Social Affairs has proposed the Ministry of Finance amend its pension reform bill to limit the amount of money which can be withdrawn from the so-called second pillar fund. The draft bill was issued last Wednesday, with interested parties given a week to submit feedback, comments, suggestions etc. by midnight this Wednesday, Nov. 6. The social affairs ministry, a key player and part of the same coalition government, had not submitted its comments as of Wednesday...

November 8, 2019
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08Nov

Ghana. Health sector pensioners assured of lump sum payments come January 2020

The Board of Trustees (BoT) of the Health Sector Occupational Pension Scheme (HSOPS) has assured its contributors that they are reasonably ready to take over payments of lump sum come January 2020. Dr Derek Amoateng, the Chairman of the Board of Trustees of the Health Sector Occupational Pension Scheme, gave the assurance at the commissioning of the Scheme's temporary secretariat located on the premises of the Greater Accra Regional Office of the Ghana Registered Nurses and Midwives Association's (GRNMA)...

November 8, 2019
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08Nov

Philippines. Social pension and our senior citizens

A hallmark of Filipino culture is how we treat our elderly with respect and utmost care. Indeed, it is normal for a family to have at least one grandparent living with them—and if not living with them, then frequently visiting to make sure the children and grandchildren are doing well. With this in mind, the government recognizes that the welfare of senior citizens can be a challenge for many families. That is why there is a need for...

November 8, 2019
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