July 2024
10Jul

US Remains Biggest Force in Pension Realm, per Study

The U.S. continues to dominate the world’s pension system, according to a study by the Thinking Ahead Institute, a research organization sponsored by financial services giant WTW. As of year-end 2023, U.S. pension assets (both defined benefit and defined contribution) made up 63.9% of the globe’s 22 highest-value pension-providing nations, up from 56.5% 10 years before, the study indicated. That may have something to do with the large amount U.S. pension providers allocate to equities—42%—over a span when stocks did well. Among the...

July 10, 2024
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10Jul

Taiwan Shifts on Immigration as Birth Rate Falls

Taiwan is set to loosen regulations on hiring caregivers, opening the door for more foreigners to meet the rising demand for elderly care in its fast-graying society. A long-standing evaluation will soon no longer be required for the most vulnerable elderly to receive live-in assistance from foreigners, Deputy Labor Minister Wang An-pang told Taiwan's legislature last week. Like its East Asian neighbors, Taiwan is becoming a super-aged society, with people over 65 years old already comprising about 18 percent of the...

July 10, 2024
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10Jul

A holistic approach needed for reforming Iraq’s pensions system in line with international labour standards

A pension system is at the heart of social protection. By ensuring income security for older persons and other vulnerable groups, it prevents poverty, reduces inequality, and smooths consumption. A pension system also affects the working population’s labour market choices and has important fiscal implications. In spite of important legal reforms, poor implementation and asymmetries between public and private sector make Iraq’s current pension system is highly fragmented, inequitable, and inefficient. The pension coverage gap in old age is projected...

July 10, 2024
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09Jul

US. Employer group urges Congress to increase retirement plan awareness for gig workers

In response to a request for information on June 5 from Senator Bill Cassidy (R-LA), ranking member of the Senate Health, Education, Labor and Pensions (HELP) Committee, for ways to allow gig workers access to retirement benefits, the American Benefits Council (ABC) has responded. The employer group sent a letter, including suggestions introduced in the SECURE 2.0. legislation, as well as pooled employers plans (PEPs) established by Congress. "The vast majority of independent workers prefer alternative work arrangements to traditional...

July 9, 2024
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09Jul

UK. Three things the new Labour govt must do for pensions

Three things need to be put at the top of Labour's list for solving the UK's pension problem, Aviva's Alistair McQueen has said. The head of savings and retirement for Aviva told FT Adviser he welcomed the reforms outlined by new chancellor Rachel Reeves this morning (July 8) but said the pensions profession was not hoping for "any new, flashy ideas." "The three priorities should be to implement the 2017 auto-enrolment reforms, implement the pension dashboard, and conclude the advice/guidance boundary review." According to McQueen,...

July 9, 2024
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09Jul

Nigeria. Pension fund assets increased to N20.22trn in May 2024, says PenCom

The National Pension Commission (PenCom) says total pension fund assets increased to N20.22 trillion in May 2024. This is an increase of 2.23 percent compared to the N19.78 trillion recorded in April 2024, according to PenCom’s data on the pension funds industry portfolio for the period ended May 31. The commission’s data showed that 63.22 percent or N12.78 trillion of the total funds were invested in federal government securities, comprising bonds and treasury bills. PenCom said about 10.83 percent of the funds were invested in...

July 9, 2024
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09Jul

US. Retirement Readiness Confidence Robust

Confidence in financial readiness to retire is robust, despite the vagaries of inflation and other economic factors and the after-effects of the pandemic.  And that confidence is especially attuned to participating in a retirement plan. The Employee Benefit Research Institute (EBRI) in its 2024 Retirement Confidence Survey reports much strong confidence. However, it’s more than twice as high among those with retirement plan coverage than among those who lack it. Among respondents who are covered by a retirement plan, 77% of...

July 9, 2024
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09Jul

Group of Canadian pension fund giants urges CSSB to reconsider exemptions from sustainability reporting

Canadian pension funds question CSSB's proposed exemptions and call for global standards. Investors highlight the importance of consistent sustainability reporting. Pension funds warn that exemptions could undermine global alignment and investor confidence. A coalition of major Canadian pension funds has submitted a letter to the Canadian Sustainability Standards Board (CSSB), urging it to reconsider proposed exemptions for sustainability reporting. This initiative underscores the critical need for global consistency and alignment in sustainability disclosures. The letter is signed by representatives of the following...

July 9, 2024
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08Jul

UK. The Pensions Regulator to challenge master trusts on investments

The Pensions Regulator will shift its focus onto the making sure master trust investments deliver for savers, now it has taken regulatory responsibility of these vehicles. The growth of master trusts has been driven by the introduction of automatic enrolment in 2012 and in 2018 the Government introduced a regulatory framework which meant only master trusts authorised by TPR were permitted to operate. Neil Bull, TPR’s executive director of market oversight, said following the completion of this process the regulator would...

July 8, 2024
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08Jul

Hong Kong. HSBC fined $3 mln over incentives given to unauthorised agents for MPF scheme

HSBC has been fined HK$24 million ($3.07 million) for offering incentives to "unregistered intermediaries" to get clients to join its Mandatory Provident Fund (MPF) scheme in 2020 and 2021, Hong Kong's pension regulator said. The Mandatory Provident Fund Schemes Authority (MPFA) also said that it disqualified Yip Sze Ki, former head of pensions at HSBC, from taking up senior executive positions at any MPF operator for the next 18 months, according to a statement on Friday. "The MPFA concluded that HSBC...

July 8, 2024
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