June 2019

14Jun

The Effects of Pension-Related Policies on Household Spending

By Susana Párraga Rodríguez This paper estimates the impact of pension-related policies on household spending. The identification strategy exploits the deviation in pensioner income and expenditure caused by the introduction of a new pension system during the 1980s and 1990s in Spain and constructs a new narrative series of legislated pension changes. I present a variety of estimates, some of them imply that increases in the average pension have a roughly one-for-one effect on pensioner spending. The strongest effects...

June 14, 2019
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14Jun

Social Security Coverage for State and Local Government Workers: A Reconsideration

By William G. Gale, David John, Sarah E. Holmes Since it was created in 1935, Social Security has grown from covering about half of the work force to covering nearly all workers. The largest remaining exempted group is a subset of state and local government workers (SLGWs). As of 2008, Social Security did not cover about 27 percent of the 23.8 million SLGWs (Congressional Research Service 2011). Non-coverage of SLGWs is concentrated in certain states scattered around the country...

June 14, 2019
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14Jun

The Great Pension Debate: Finding Common Ground

By Robert L Brown, Stephen Eadie In the never-ending debate about finding an optimal pension model, many proponents start the discussion at extreme ends of the pension model paradigm. At one extreme is a traditional, fully guaranteed defined-benefit (DB) pension plan. In this plan, all of the risks are born by the plan sponsor given that plans are fully funded. While such plans are growing rare today that is the starting point for many in this debate. At the...

June 14, 2019
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14Jun

A las AFP no les gusta la idea de elevar el 4% de cotización adicional con un componente solidario

El gerente general de la Asociación de AFP, Fernando Larraín, manifestó su respaldo, una vez más, a la posibilidad de elevar hasta un 5% o más la cotización adicional con cargo al empleador, una idea que estaría evaluando el gobierno. “Lo que hemos venido diciendo hace varios años es que la tasa de cotización que teneos, dadas las expectativas de vida de Chile y dado los nivles de ahorro que tenemos, (es que) necesita subirse (esa cotización)”, dijo el...

June 14, 2019
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14Jun

Australian regulator slaps stricter conditions on AMP’s pension funds, shares fall

Australia’s banking watchdog on Friday said it had imposed stricter licensing conditions on AMP Ltd’s pension fund units following concerns regarding its compliance with superannuation laws, sending its shares down more than 4%. The move comes as the country’s largest listed wealth manager works to rebuild its brand after revelations of serious wrongdoing at an inquiry into the financial sector last year, including the charging of fees for services not rendered. Responding to the Australian Prudential Regulation Authority (APRA),...

June 14, 2019
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14Jun

Zimbabwe pensioners face delay in payments amid currency row

Payments to 200,000 retirees on Zimbabwe’s public pensions scheme could be delayed this month, the national social security agency said, after a foreign currency dispute erupted between local banks and a payments software vendor. Zimbabwe is battling an extended foreign currency crisis which has affected key imports such as electricity, fuel and medicines. Many firms with foreign ownership are also struggling to repatriate dividends to non-resident shareholders. Its National Social Security Authority, a mandatory public pension scheme, said on...

June 14, 2019
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14Jun

Minding the gap between the sexes in Switzerland

In Switzerland, equal rights for women and men are enshrined in the Federal Constitution – which is what voters wanted. But nearly 40 years after the popular vote of June 14, 1981, the goal of equality has yet to be achieved. Here are five key indicators illustrating day-to-day gender inequality in Switzerland. “Men and women have the right to equal pay for work of equal value,” states the constitutional article on equal rightsexternal link. The law also expressly prohibits...

June 14, 2019
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14Jun

South Korea’s Pension Fund to Adopt New Hiring Policy Amid Staff Exodus

South Korea’s National Pension Service (NPS) has reportedly decided to introduce a new hiring policy for its portfolio managers. According to the new policy, one of the largest pension funds in the world now wants to hire fresh talents and nurture them instead of hiring experienced managers as it currently does. To date, the NPS has hired only experienced professionals for portfolio manager positions. Since the pension manages massive assets — about 675 trillion South Korean won ($571 billion)...

June 14, 2019
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14Jun

Bermuda. Athene adopts pension risk analytics platform from RiskFirst

Athene Holding Ltd., one of Bermuda’s leading retirement services companies, has become the first insurer to adopt PFaroe, the pension risk analytics and reporting platform from RiskFirst. Using PFaroe’s on-demand liability and transaction price monitoring services, Athene plans to help sponsors evaluate risk and purchase annuities at the optimal time. “We see real value in moving from monitoring liabilities and insurance prices on an ad hoc basis to a more frequent – even daily – basis,” said Sean Brennan,...

June 14, 2019
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13Jun

Puerto Rico: Jubilados llegan a acuerdo de pensión con junta

Un grupo de empleados públicos pensionados que confrontó al gobierno de Puerto Rico alcanzó un acuerdo con la junta de control que supervisa las finanzas de la isla y que trata de reestructurar más de 50.000 millones de dólares en pasivos de jubilación, informaron las autoridades el miércoles. El acuerdo anunciado molestó al gobierno de la isla, que insiste en recortar el sistema de pensión pública en medio de una recesión de 13 años. El acuerdo todavía...

June 13, 2019
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