September 2019

Does Automatic Enrollment Increase Contributions to Supplement Retirement Programs by K-12 and University Employees?

By Robert L. Clark, Denis Pelletier This study examines the impact of the adoption of automatic enrollment provisions by schools and universities in the state of South Dakota for its supplemental retirement saving plan (SRP). In South Dakota, educational personnel are also covered by a defined benefit pension plan and by Social Security. Thus, career public employees in South Dakota can expect a life time annuity from these two programs of around 75 percent of their final salary. Prior...

México. Pide STPS a Afores agilizar el pago de sus ahorros a los trabajadores; suman 70 mil juicios en contra de éstas en la JFCA

La Junta Federal de Conciliación y Arbitraje tiene 70 mil juicios en contra de las administradoras de fondos para el retiro (Afores), en distintas etapas del procedimiento. Durante la reunión, celebrada en las instalaciones de la Secretaría del Trabajo y Previsión Social (STPS), la presidenta de este organismo dio a conocer que del total de casos, 20 mil 368 expedientes son los que tienen en ejecución. Información relacionada: Definen STPS y sindicatos agenda a seguir para implementación de Reforma...

Chile. Andrés Santa Cruz renunció a la presidencia de las AFP

“Lamento el revuelo que mis declaraciones han provocado. En mi vida personal y empresarial, siempre he tratado con respeto y deferencia a todas las personas y si alguien se sintió ofendido por la forma de expresarme, esa nunca fue mi intención, y por tanto, ofrezco mis sinceras disculpas”. Así comienza el comunicado con el que el presidente de la Asociación de AFP, Andrés Santa Cruz, renunció al cargo que ejercía desde enero de 2017. Esto en medio del debate...

México tiene más de 15 millones de freelancers

El fin de semana se celebró el Día Internacional del Trabajador Independiente, una modalidad que está en pleno ascenso. Se estima que en México más de 15 millones de personas están en la categoría de trabajo independiente que no es necesariamente exclusivo de los más jóvenes porque 35% de los trabajadores son mayores de 39 años y 60% eligió voluntariamente esta independencia a la que no renunciarían por razones de sueldo o económicas. Y si bien ser un empleado...

El perfil de los peruanos que sacaron sus ahorros de los fondos de pensiones

Esta semana se abrió un debate respecto de si los afiliados a las AFP son o no propietarios de sus fondos y con ello, si es que pueden retirarlos. Esto a raíz del recurso de protección presentado por una profesora jubilada de Antofagasta que pretende retirar sus fondos para pagar un crédito hipotecario. Ante la eventual colisión de derechos -el de propiedad de los fondos versus el de tener una pensión-, actores del mercado, en especial, las AFP han...

Japan. Investors Await Naming of CIO at World’s Largest Pension Fund

Japan’s Government Pension Investment Fund will likely announce next week whether its chief investment officer will continue to manage the monolith’s $1.48 trillion in assets. Hiromichi Mizuno, whose term will end on Sept. 30, captained sweeping changes to the investment strategy of the world’s largest pension fund over the past five years. He became the GPIF’s first CIO in January 2015, overseeing the fund’s shift to stocks from domestic debt, while advocating assets that incorporate environmental, social and governance...

73% of Americans Lack Financial Confidence in Retirement

Retirement can be a daunting prospect, since it generally involves moving from a steady paycheck to a fixed income. Unfortunately, the overwhelming majority of Americans lack financial confidence with regard to that milestone. Only 27% of U.S. adults are very confident about their ability to maintain financial stability in retirement, according to TIAA's 2019 Lifetime Income Survey. If you're not one of them, here are three important things to do today. 1. Know what to expect from Social Security Many people worry about...

Linking financial services and social protection for resilience: lessons from Kenya

Climate-related shocks and stresses threaten people and communities around the world, compounding existing poverty and vulnerability and undermining long-term development. National and international actors are searching for new and better ways to help people deal with increasing climate risks and, in turn, support long-term resilience. One potential way of doing this is to facilitate access to, and use of, adequate financial services such as savings, loans and insurance in underserved communities. The role of social protection (SP) programmes in helping...

Australia. Super and pension budget measures in firing line of retirement review

The next increase in compulsory superannuation and a string of budget savings measures that have crimped retirees' incomes will be investigated in the first comprehensive review of the nation's retirement income system in 30 years. Treasurer Josh Frydenberg on Friday released the terms of reference for the inquiry, which will cover the age pension, voluntary savings including the family home, aged-care funding, franking credits and the role of the powerful $2.9 trillion superannuation industry. The wide-ranging review would examine...

Danish Pension Funds Sign $52 Billion Green Pledge

Denmark’s private pension fund industry is banding together in a pledge to invest more than 350 billion Danish kroner ($51.7 billion) in green assets by 2030. The goal is to help reduce the country’s carbon dioxide emissions by 70%. The investments will be in energy infrastructure and other green activities such as green shares, green bonds, and investments in energy efficient construction. According to Insurance & Pension Denmark (IPD), the country’s pension trade association, the Danish pension industry...