June 2024
14Jun

Legal & General resets strategy, focuses on pension risk transfer, private markets

Legal & General Group will bring together its investment management business and alternatives platform to create a single asset management division, aiming to almost double its private markets platform assets, and will "seize the significant" pension risk transfer opportunity under a new strategy. L&G announced a refreshed strategy and financial targets June 12, following “a rigorous review of the business,” a statement said. As part of the move, it will bring Legal & General Investment Management The move will create a single,...

June 14, 2024
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13Jun

US. House Republicans accuse ESG-focused pension funds, other investors of antitrust violations

Partisan differences were clear at a House hearing June 12, when Republicans accused CalPERS, Arjuna Capital and other institutional investors that consider environmental, social and governance factors of violating antitrust laws. The hearing followed the release of an interim report on June 11, in which Republicans on the House Judiciary Committee said pension funds, asset managers, proxy-advisory firms and environmental groups are coordinating a “climate cartel” to force companies to‘“decarbonize” and “reach net zero.” “The climate cartel is engaged in anti-competitive collusion...

June 13, 2024
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13Jun

UK. Auto-enrolment ambitions must go above and beyond just pensions

If I were to point to the most sensible decision made in pensions policy in the last 20 years, the introduction of auto-enrolment (AE) in 2012 would no doubt top the list. In one swoop, the mandatory law made saving for retirement the norm and improved the chances of maintaining a decent standard of living in later life for millions of employees. Of course, AE was never supposed to be the last word. It was meant to be the beginning of...

June 13, 2024
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13Jun

South Africa. Government pension fund systems offline for months after ransomware attack

The Government Employees Pension Fund (GEPF) suffered a cyberattack in February 2024, and it only expects to restore its self-service functionality by 21 June 2024. A notice published on the GEPF’s social media pages says the self-service functionality on its web platform and app was still offline due to the data breach at the Government Pensions Administration Agency (GPAA). “The GPAA has determined that a total rebuild of the platforms is necessary to ensure a stronger platform,” it said. It is expected...

June 13, 2024
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12Jun

Funded Status of U.S. Corporate Pension Plans Continues to Improve in May

In May, the financial health of U.S. corporate pension plans experienced a marked improvement, continuing a positive trend seen over the past five months, according to a round-up of the country’s pension watchers. The main reasons for the positive funding trends in May across various corporate defined benefit plans included positive economic indicators, strategic investment approaches such as cash-flow-driven strategies and resilience in market performance despite lower interest rates. “May’s improvement is the fifth month in a row of funded ratio...

June 12, 2024
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12Jun

Mercer inks deal to buy Cardano

Mercer agreed to acquire U.K. and Netherlands retirement specialist and outsourced CIO business Cardano. The deal for Mercer — part of Marsh McLennan — to acquire Cardano is set to close near the end of the year, a news release said. It is subject to regulatory approvals and terms of the deal were not disclosed. Cardano, which has $66 billion in assets under management, is an OCIO, investment advisory and liability-driven investing and derivatives solutions firm, working with both defined benefit and...

June 12, 2024
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12Jun

Kenya. State fails to remit Sh220m pension for new employees

The government failed to remit Sh219.9 million in its share of contributions to the Public Service Superannuation Fund (PSSF) in the financial year ending June 2023, revealing emerging risks for the recently established pension scheme. PSSF, which commenced operations in January of 2021, is a defined contribution scheme under which civil servants pay towards their retirement benefits which are topped up by exchequer contributions. Civil servants contribute 7.5 percent of their gross salaries from five and two percent previously while the...

June 12, 2024
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12Jun

UK. WASPI women promised they’ll receive ‘apology and proper compensation’

WASPI women have received a compensation pledge ahead of July's General Election. Department for Work and Pensions ( DWP ) campaigners have called for WASPI women to receive payouts after the Ombudsman's damning report earlier this year. In its election manifesto, the Liberal Democrats has stated: "The women affected by changes to their state pension age should receive an apology from the government and should be given proper compensation." Director of public affairs Becky O'Connor welcomed the measures to widen pension participation to gig economy...

June 12, 2024
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12Jun

South Africa. Two Pot Retirement System

What is a two-pot retirement? The two-pot retirement system is a reform that will allow retirement fund members to make partial withdrawals from their retirement funds before retirement, while preserving a portion that can only be accessed at retirement to help improve retirement outcomes. This means members need not resign to access part of their retirement benefit if they are in financial distress. This reform will come into effect on 1 September 2024. Who is it meant for? The new system will...

June 12, 2024
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11Jun

AT&T Seeks Dismissal From Two Lawsuits Targeting PRT Deal with Athene

AT&T Inc. filed a motion to dismiss two lawsuits against the company Wednesday that accused both AT&T and its independent fiduciary, State Street Global Advisors Trust Co., of selecting a “risky” third-party insurance company—Athene Annuity and Life Company—to conduct its $8.05 billion pension risk transfer in May 2023. The retirees who filed the two lawsuits against AT&T claimed that selecting Athene was not a safe annuity choice for ERISA fiduciaries. But the company’s filing argued that AT&T did not make...

June 11, 2024
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