June 2024
18Jun

UK. DC contributions exceed DB pensions for the first time

A report published today by Barnett Waddingham (BW), the leading professional services consultancy shows that for the first time, contributions paid by the FTSE 350 defined benefit (DB) scheme sponsors into defined contribution (DC) schemes exceeded those paid into DB schemes. BW conducted an analysis of the FTSE 350 companies with DB pension schemes over the last twelve months to 31 May 2024. The data reveals that contributions totalling £8.1 billion were paid into DB schemes (consisting of £4.7bn of...

June 18, 2024
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18Jun

US. Public pension funding ratios roar back in May — Milliman

The overall estimated funding ratio of the 100 largest U.S. public pension plans bounced back in May thanks to strong investment returns for the month, according to the Milliman 100 Public Pension Funding index. The increase in the funding ratio to 79.4% as of May 31 from the estimate of 77.6% as of April 30 was primarily the result of positive market performance in May, almost completely reversing a weak April for investment returns. The estimated funding ratio at the...

June 18, 2024
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18Jun

China raises base pensions for retirees by 3%

China's retirees will see a boost in their monthly pensions starting Jan 1, 2024, according to a joint notice from the Ministry of Human Resources and Social Security and the Ministry of Finance. The increase applies to individuals who completed their retirement procedures by the end of 2023 and were previously employed by companies or government bodies. The adjustment represents a roughly 3 percent increase on the average monthly base pension for retirees in 2023. The State Council, China's cabinet, approved...

June 18, 2024
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18Jun

Thailand pension fund GPF studies asset allocation to seek resilient traits, report says

Thailand’s Government Pension Fund (GPF) is conducting a study on its strategic asset allocation strategy to identify characteristics of assets that can be resilient to risks over the next three years, Songpol Chevapanyaroj, secretary-general of the pension fund for civil servants, says in an interview with the Bangkok Post. The study is expected to be completed in the fourth quarter. “The difficulty in investment allocation is you cannot fully rely on either domestic or foreign investments,” Songpol is quoted as saying in...

June 18, 2024
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17Jun

UK. Election could create an opportunity for ‘radical shake-up’ in pensions

The start of a new parliament is a good time to stand back and ask some pretty fundamental questions about the UK pension system. Much of the complexity in the current system has arisen as a result of piecemeal changes, often because the government of the day was short of a billion or two to balance the books. But the promised pensions review under a potential new government offers a long-awaited opportunity to think strategically about the system as a whole...

June 17, 2024
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17Jun

US. Gen X is the least confident about retirement as ‘crunch time’ nears—and has done less to prepare than boomers or millennials

The cohort once derided as the “slacker generation” is about to start heading into retirement, and many Gen Xers aren’t feeling so optimistic about it after not doing as much to get ready. Only 62% of Gen Xers feel confident about “being able to financially support all the things they want to do in life,” according to Allianz Life Insurance’s 2024 annual retirement study. That’s well below baby boomers (82%) and millennials (77%). To be sure, the simple fact that Gen X...

June 17, 2024
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17Jun

​Sweden eases rules on occupational pension payout phase, allowing pauses

Sweden’s government has decided to introduce more flexible rules for the payment of occupational pensions — following agreement on the issue by the cross-party pensions group last October. During the first five payment years, it will be possible for individuals to pause payments and extend the payment period, according to an announcement from the ministries of finance and social affairs last week. Elisabeth Svantesson, the Swedish finance minister, said: “Sweden’s pensioners should be able to choose how they want to set...

June 17, 2024
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17Jun

Japan’s Kishida says no plan for pension fund to buy BOJ’s ETF holdings

apanese Prime Minister Fumio Kishida said on Monday he has no plan for the government's pension fund to buy the central bank's holdings of exchange-traded funds (ETF). "The Bank of Japan holds ETFs as part of its monetary policy efforts to achieve its price target. It's up to the central bank to decide on how to load the holdings," Kishida told parliament. "The government has no plan to request or instruct GPIF to buy the central bank's ETF holdings," he said. Kishida...

June 17, 2024
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17Jun

UK. DWP Spending Review May Require PIP Recipients to Repay Money

The Department for Work and Pensions (DWP) provides State Pension and welfare benefits to about 22.7 million people across the United Kingdom. New numbers revealed in the 2024 Fraud and Error in the Benefit System report show that the overall number of benefit overpayments over the last year was £9.7 billion (3.7%), up from £8.3 billion in 2023. Personal Independence Payment (PIP) was implemented in 2013 to aid with additional expenditures associated with a long-term disability or health condition. The numbers reveal that...

June 17, 2024
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14Jun

3M to transfer pension-payment obligations for 23,000 U.S. retirees

3M to book a charge of nearly $1 billion as it transfers some of its pension obligations to Met Tower Life 3M Co. said Thursday it will transfer about $2.5 billion of its pension-payment obligations to Metropolitan Tower Life Insurance Co. The consumer- and industrial-products company (MMM) said the transfer, which will affect the pension payments of about 23,000 U.S. retirees, won't change the amount of the monthly benefit payments. The only change is who is making the payments. 3M, which makes...

June 14, 2024
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