January 2025

Belgium pension protests disrupt transport, schools

The nationwide strike that paralyzed Belgium's transport network on Monday highlighted growing opposition to proposed pension reforms, as labor unions mobilized an estimated 30,000 workers from across multiple sectors. The action brought air and rail services to a standstill and forced numerous schools to close their doors. In the Belgian capital, Brussels airport reported that nearly 50 percent of its flights were grounded after crew, including luggage handlers and security personnel, joined the walkout, and the national railway company NMBS operated...

UK pension schemes in “robust position” to deal with market movements

Pension schemes in the UK are in a "robust position" to deal with market fluctuations, an industry body has said. The pound fell to a fresh 14-month low on Monday, while UK government bonds, also known as gilts, continued to see 10-year yields hit highs not seen since 2008. Yields are a key indicator of market confidence, moving inversely to bond prices. There has been speculation over potential impacts for pensions from the gilt market rout, as well as mortgages, with comparisons...

US. IRS, Treasury Release Proposed Regulations on SECURE 2.0 Provisions

The Department of the Treasury and the Internal Revenue Service Friday issued proposed regulations for several provisions of the SECURE 2.0 Act of 2022. The first proposed regulations address the rules for new Roth catch-up contributions, beginning in 2026, as well as other catch-up contributions across different defined contribution plan types. Later Friday, Treasury and the IRS issued another set of proposed regulations for the SECURE 2.0 provision that requires newly established 401(k) and 403(b) plans to automatically enroll eligible employees beginning with...

China. Private pension plan to boost capital markets

The implementation of a private pension program nationwide will serve as an important driver for the increased maturity of Chinese capital markets, but there is still room for it to attract more users with a willingness to open accounts and invest, said experts. According to a notice jointly released by five central government departments, including the Ministry of Human Resources and Social Security, the Ministry of Finance and the State Taxation Administration, the private pension program began to be fully...

Romanian private pension fund assets jump 19% in 2024 on year

Assets held by Romania's seven mandatory private pension funds jumped 19% on the year to 150.85 billion lei ($31.15 billion) in 2024, with the average yield at 5.74%, slightly above the 5.1% annual inflation rate, the industry association said on Tuesday. The European Union member state overhauled its communist-era pension system in 2008, making it compulsory for working Romanians under 35 to contribute to a "second pillar" of private pension schemes as well as their state pension. Roughly 8.3 million Romanians...

Europe’s top pension fund divests $585 million stake in Tesla

Europe's largest pension fund, Stichting Pensioenfonds ABP, has sold off its entire stake in Tesla (NASDAQ:TSLA) Inc., valued at $585 million, during the third quarter. The decision was influenced by several factors, including a disagreement over CEO Elon Musk's compensation package. Stichting Pensioenfonds ABP spokesperson stated on Sunday that the fund had issues with Musk's pay package. The decision to divest was also influenced by considerations of costs, returns, and responsible investment requirements. The Dutch newspaper Het Financieele Dagblad originally reported...

PensionBee Launches New Climate Plan to Help Customers Invest in Line With the Paris Agreement Goals

PensionBee, a leader in the consumer retirement market, has launched its new Climate Plan that sets a clear standard for climate-focused pensions. This plan not only excludes fossil fuel producers but also commits to continually reducing the total intensity of greenhouse gas (GHG) emissions produced by companies in the plan by 10% annually. So, even if the global economy uses more carbon over time, the Climate Plan will move in the opposite direction, always using less. Building on the success of...

Turkish Parliament set to discuss new bills, pensions

Parliament’s General Assembly will resume its weekly work on Tuesday with an agenda dominated by draft bills and a debate on pensions. Lawmakers will discuss the ruling Justice and Development Party’s (AK Party) bill for the establishment of the Turkish Justice Academy, an educational institution first of its kind for intra-judiciary training. The bill proposes the eligibility of judges and prosecutors with at least an eight-year career in the profession for assignment to the academy. The academy will also host...

US. Could climate change cost pensions 44 per cent?

Climate change is a complex financial risk. Its immediate impact on weather patterns and the various societal responses to a changing climate will influence GDP growth, inflation and ultimately, financial markets. An inaugural climate report released by Ortec Finance has found that Canadian pension funds are among the funds most vulnerable to climate change, second only to US pensions. Climate risk specialist at Ortec and author of the report Doruk Onal says Canadian pension funds are expected to experience profound...

Pension managers urge UK to ditch ‘megafund’ scale test

UK pension managers have objected to government plans to force the creation of a series of “megafunds”, arguing it could stifle competition and hamper investment returns. Fund managers say that the government should focus on optimising value for savers rather than applying an “arbitrary” scale test for pension funds that could discourage new market entrants and force some funds to merge with underperforming peers. The criticisms come after the government said last year defined contribution (DC) workplace pension schemes should consolidate...