July 2024
04Jul

United States: US court vacates the SEC Private Fund Adviser rule

On 5 June 2024, the United States Court of Appeals for the Fifth Circuit vacated the Private Fund Adviser rule (“Rule“) in its entirety on the grounds that the SEC, in enacting the Rule, had exceeded its statutory authority. The Rule was adopted by the SEC in August 2023 and would have fundamentally changed the regulatory landscape for private equity funds and their investors. The outcome was somewhat unexpected as in oral arguments the petitioners only directly challenged three...

July 4, 2024
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04Jul

UK. Election 2024 manifestos: Parties’ pledges on disability, PIP, pensions and workers’ benefits

The party vows to reform disability benefits so they are “better targeted” and improve PIP assessments to make it more specific to someone’s need – following a consultation. The party wants to stop the number of claims from rising and argues people with mental health issues, for example, may not need as much financial support as someone with a physical disability. Labour Labour would work with councils to help match up disabled people, or those with health conditions, with jobs as...

July 4, 2024
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04Jul

Pakistan. Govt Employees Pension Updates: Government Implements Sweeping Pension Reforms

The Pakistani government has announced major reforms to its pension system, aimed at addressing the rising costs and ensuring long-term sustainability. These changes, effective from July 2024, follow recommendations from the Pay and Pension Commission of 2020 and introduce new regulations to streamline pension payments. Key aspects of the reforms include: Gross Pension Calculation: The gross pension amount will now calculated as 70% of the average salary over the last 24 months of service before retirement, ensuring a fair basis...

July 4, 2024
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04Jul

South Africa. Pension fund members hope to pay off debt from two-pot retirement withdrawals

Pension fund members hope to pay off some debts from their two-pot retirement system withdrawals as financial pressures force 50% of consumers to cash in their retirement funds in an environment where even high-income consumers are failing to pay their home loans. And if they use money from Peter to pay Paul, they will also have to pay the tax man. According to Sanlam Benchmark research that will be revealed next week, Sanlam found in 2022 that just 31% of...

July 4, 2024
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03Jul

Nearly 24 million UK adults have poor financial literacy

Some 23.3mn UK adults have poor financial literacy making them £20,000 worse off compared to those with good financial literacy. The data comes from Abrdn’s first release of its ‘Savings Ladder index’ which gauges financial literacy levels in the UK. Abrdn asked respondents the Global Financial Literacy Excellence Centre’s ‘Big 3’ financial literacy questions and found that 20 per cent could not correctly answer any of the questions asked of them, while a quarter could only answer one. According to Abrdn, those...

July 3, 2024
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03Jul

General Electric sued over pension risk transfers to Athene

The employees accused Athene of violating ERISA and of “investing in lower-quality, higher-risk assets without the traditional mix of quality assets to support future benefit obligations,” in the case of Bueno et al. vs. General Electric Co. et al. filed June 28 in a U.S. District Court in Syracuse, N.Y. The lawsuit seeks class-action status, saying approximately 70,000 people could be affected by the pension risk transfer that was announced in December 2020. Athene is not a defendant, and neither is...

July 3, 2024
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03Jul

Canadian pension plans were volatile in Q2: Mercer

Defined-benefit (DB) pension plans in Canada experienced volatility throughout the second quarter of 2024 due to interest rate changes and market instability, according to Mercer Canada. The DB plans tracked in Mercer’s database had an average solvency ratio of 118% on March 29, 123% on April 30, 122% on May 31 and 118% on June 28. The solvency ratio is the ratio of plan assets to liabilities. “The overall financial health of DB pension plans in Canada remains strong,” said Jared Mickall,...

July 3, 2024
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03Jul

Invesco Launches New Global Climate ETF with $1.6 Billion from Pension Insurer Varma

Global asset manager Invesco announced the launch of the Invesco MSCI Global Climate 500 ETF (KLMT), and new exchange traded fund providing exposure to companies meeting environmental and climate criteria and reducing greenhouse gas emissions. The new ETF, trading on the NYSE, is being launched with a $1.6 billion investment by Finnish pension insurer, Varma. Timo Sallinen, Varma’s Head of Listed Securities, said: “We are very pleased to work alongside Invesco, one the world’s biggest asset managers, and MSCI, a leading global index...

July 3, 2024
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02Jul

UK. DC pension schemes see rise in investments in assets with climate targets

The defined contribution (DC) pension scheme market has seen almost a quarter (23%) increase in schemes’ investment in assets with climate targets since 2021, according to research from Barnett Waddingham. The majority (86%) of DC pension schemes have set targets to reach net-zero by 2050, with 18% of these targeting 2040. Of the pension schemes that have set net-zero targets, 81% have committed to achieving interim targets, in many cases aiming to achieve a 50% emissions reduction by 2030. Barnett Waddingham said:...

July 2, 2024
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02Jul

US. It’s time for Gen X–ers nearing 60 to give their retirement plans a reality check

The oldest members of Generation X — that generation born between 1965 and 1980 and known for its irreverence, sarcasm and indifference — are hitting 59½ and eligible to start withdrawing money from retirement accounts without penalty. But should they be touching their nest eggs so soon? As the first do-it-yourself generation funding retirement largely without private pension plans, many members of Gen X graduated college or high school during a recession. They got their first jobs when 401(k)s were...

July 2, 2024
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