August 2024
09Aug

Largest UK pension fund sells off Israeli assets amid member anger over Gaza

The UK's largest pension fund has sold off £80m ($101m) in assets linked to Israel amid internal pressure from members, the Financial Times has reported. The Universities Superannuation Scheme (USS) manages investments totalling £79bn in total and has more than 500,000 members who work for universities and higher education institutions in the UK. Pressure has grown on the fund to withdraw its Israeli investments in light of the ongoing war on Gaza and Israel's longstanding occupation of Palestinian land. At least, 40,000 Palestinians have been killed in Israel's ongoing military...

August 9, 2024
News,
Read more...
09Aug

US. House committee still seeking answers on pension bailout overpayments

Republican members of a House committee are still seeking answers over the mismanagement of bailout money distributed to failing pension plans. A Wednesday letter penned by Reps. Virginia Foxx, R-N.C., and Bob Good, R-Va., called on Attorney General Merrick Garland to provide all communications surrounding the Department of Justice’s investigation into more than 60 multiemployer pension plans that were alleged to erroneously include dead plan participants on their special financial assistance applications. Central States Pension Fund entered a civil settlement in...

August 9, 2024
News,
Read more...
09Aug

AIIM raises $954m in ‘biggest African fundraise in the last three years’

Cape Town-based African Infrastructure Investment Managers (AIIM) raised $748 million for its African Infrastructure Investment Fund 4, well above the $640 million hard-cap. Another $206 million was raised in co-investments. The previous fund in the series raised $400 million against a $750 million target, so this present oversubscription is a marked change, agrees Paul Frankish, AIIM’s head of strategic initiatives. “This is the biggest African fundraise in the last three years. A lot of the groundwork that we did by engaging with investors in the last...

August 9, 2024
News,
Read more...
08Aug

Pension schemes to be rated red, amber or green in plans to improve transparency

A new traffic light-style rating system for workplace pension schemes could improve transparency over their performance and ultimately lead to better value for savers, according to the Government and regulators. The plans aim to reduce the number of savers sitting in poor-value pensions and schemes would be publicly rated red, amber or green, once the framework is finalised. Competitive pressures should help to drive up standards and over time, regulators expect to see less of a gap between worse-performing schemes and...

August 8, 2024
News
Read more...
08Aug

Chancellor Reeves: Pension funds can fire up the UK economy

Chancellor Rachel Reeves wants UK to learn lessons from ‘Canadian model’ ahead of meeting with major Canadian retirement funds Reeves confirms first Mansion House address will focus on financial service sector’s role in delivering more investment and financing growth as work continues to fix foundations of the economy, rebuild Britain and make every part of the country better off The Chancellor Rachel Reeves has called on pension funds to “learn lessons from the Canadian model and fire up the UK economy”....

August 8, 2024
News,
Read more...
08Aug

Why UK pensions revamp can benefit from leaning into Australia’s model

In the wake of the UK government's “pot for life” pension proposal, industry experts are drawing lessons from Australia's superannuation system. The proposal, reaffirmed in the 2024 Spring Budget, aims to simplify pension management, reduce costs, and improve retirement outcomes for British citizens. However, to successfully implement an Australian-style system, the UK would need to establish a robust payments infrastructure, implement regulatory reforms, and most likely launch a comprehensive consumer education program. A daunting task, but major reforms are necessary to create...

August 8, 2024
News,
Read more...
08Aug

Industry reaction: VFM framework welcomed but risk concerns raised

The proposed Value for Money (VFM) framework for pension schemes has sparked positive reactions in the industry, as the joint approach turns focus away from cost and towards overall value, which includes service and investment performance. But some are concerned that the new rating system could oversimplify metrics, stifle innovation, and lead to standardised investment strategies that may limit savers’ benefits. LCP partner and head of DC Laura Myers says: “We have long advocated a change in emphasis from cost...

August 8, 2024
News
Read more...
07Aug

Why the informal sector has lagged in pension uptake

The blanket definition of a formal enterprise and the lack of succession structures such as family trusts have been cited as reasons behind the low participation in pension contributions among small businesses. The existence of well-formulated structures among larger entities and their compliance with tax obligations make them more attractive to financial institutions managing pension schemes, leaving out small businesses, which happen to be the largest employers. Edward Karani, Director of Infrastructure Development, Technology, and Innovation at the Micro and Small Enterprises Authority (MSEA), a...

August 7, 2024
News
Read more...
07Aug

From informal to formal: Angkas riders gain social security benefits

Angkas, a prominent ride-hailing service in the Philippines, has taken a significant step towards enhancing the welfare of its riders by signing an agreement with the Social Security System (SSS) to provide social security coverage to around 50,000 riders. This initiative, championed by Angkas, marks a monumental shift in how gig economy workers are perceived and treated within the formal economic structure. We extend our heartfelt thanks to Rolando Macasaet, president and CEO of SSS, for his unwavering support...

August 7, 2024
News
Read more...
07Aug

Economist’s cost transparency intervention triggers backlash in Switzerland

Industry representatives have slammed new analysis claiming higher costs incurred by Swiss Pensionskassen just a month-and-a-half before a referendum on occupational pensions reform. Discussions erupted after Rudolf Strahm, an economist, former politician and former cost supervisor, presented upwards-revised figures for administrative and asset management costs of Swiss pension funds in an article published by the Aargauer Zeitung. According to Strahm, CHF8.6bn (€9.2bn), or an average of CHF1,500 per year and per member, go to finance costs of pension funds. This is CHF1.5bn...

August 7, 2024
News
Read more...