August 2020

18Aug

US. Pension Debt Expected to Surge Due to COVID-19 Volatility

Underfunded defined benefit (DB) pension plans can expect to see their liabilities surge over the next several months due to volatility from the COVID-19 pandemic. According to research from Moody’s Investors Service, companies are on pace to see a 6% increase in total adjusted debt in 2020 as modest asset returns fail to offset tumbling discount rates. Moody’s said in a recent report that 2020 has so far “proved to be a roller coaster ride” for the two drivers...

August 18, 2020
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18Aug

Verod takes on Nigerian pensions operator

AXA Mansard Pension is the latest in a series of Nigerian investments by Verod Capital Management. West African private equity investor Verod Capital Management has taken over Nigerian pension administrator AXA Mansard Pension, following other investments made in the country’s financial services sector by Verod in recent years. AXA Mansard Pension operates saving accounts and pension funds on behalf of private and public sector employees, with the deal subject to regulatory approval by the National Pension Commission. Formerly known...

August 18, 2020
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17Aug

South Africa. ANC planning to use pension funds to launch state-owned bank

Reports have surfaced which reveal that the African National Congress (ANC) is working on plans to create a state-owned bank which will use pension funds to gain access to favourable rates. Read also South Africa. Enoch Godongwana: Prescribed assets won’t be used to bailout struggling SOEs A report published by the Sunday Times on Sunday Augst 16, which revealed that the ANC has developed a recovery plan and one of the efforts involved would be an effort to invest in...

August 17, 2020
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17Aug

Ireland. Kicking pensions can down the road will cost us all

During this pandemic the Government must not ignore the urgent need for pension reform. After protracted negotiations to form a new Government, urgent attention is now required to reform the pension system and protect the retirement security of future pensioners. The underlying issues are clear: our population continues to age; the cost of providing State pension support is growing; and the participation rates and adequacy of private pension saving remain too low. Experience shows that longer-term issues such as...

August 17, 2020
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17Aug

Campaign launched to nurture interest in ESG investing

In recent months there has been much debate about the risks and opportunities associated with investing in environmental, social and governance companies. The growing evidence weighted in favour of ESG, particularly in light of the fossil fuel crisis, has led to interest in how to make investing in green companies easier and more transparent for advised clients. The recent launch of the Make My Money Matter campaign aims to encourage the public and the finance sector to work together...

August 17, 2020
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14Aug

EIOPA finalises the regulation of the pan-European Personal Pension Product

Today the European Insurance and Occupational Pensions Authority (EIOPA) delivered to the European Commission a set of draft Regulatory and Implementing Technical Standards and its advice on Delegated Acts to implement the framework for the design and delivery of the Pan-European Personal Pension Product (PEPP). Read also Chilean Central Bank Measures Reduce Banks’ Risks from Pension Withdrawal EIOPA’s proposed legal instruments follow the objective to unlock the potential of the European personal pension market by setting the right incentives for...

August 14, 2020
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14Aug

US. Massive 401(k) Suit Settlement Struck

In a remarkably short period, an excessive fee suit involving proprietary funds has settled for what may be the largest monetary settlement among those cases to date. The suit—filed on Feb. 15, 2019 by plaintiff (and former McKinsey plan participant) Tushar Bhatia against McKinsey and MIO (MIO Partners, Inc., a subsidiary of McKinsey)—asserted claims for breach of fiduciary duty, prohibited transactions, and equitable restitution under ERISA. More specifically, he alleged that McKinsey adopted certain in-house funds for the...

August 14, 2020
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14Aug

UK. TPR responds to questions on their effectiveness on a pension scam case to WPC

The Pensions Regulator (TPR) chief executive, Charles Counsell, has written to Work and Pensions Committee (WPC) chair, Stephen Timms, in response to questions posed by Timms concerning TPR’s handling of the Norton Motorcycles case. Following The Pensions Ombudsman’s (TPO) decision to uphold the complaints relating to the Norton Motorcycles pension schemes, Timms wrote to Counsell asking about TPR’s plan of action. At the time, Timms described the case as “shocking” and said it raises “serious questions” about the “effectiveness...

August 14, 2020
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13Aug

Nearly half of young people have lost income due to the crisis, UN study finds

Some 42% of young people around the world, who were still working during the pandemic, have seen a drop in income as a result of the coronavirus crisis, a study by the United Nations’ labor body has found. Drew Gardiner, youth employment specialist for the UN’s International Labour Organization, told CNBC’s “Squawk Box Europe” on Wednesday that young people were in a “disadvantaged position” in the labor market even before the pandemic hit. This is partly because...

August 13, 2020
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13Aug

Chilean Central Bank Measures Reduce Banks’ Risks from Pension Withdrawal

Following congressional approval of a bill to allow Chileans to withdraw up to 10% of their holdings from private pension funds, for the first time the Chilean Central Bank announced a program on July 30 to conduct repos with pension funds to purchase up to USD10 billion in senior bank bonds. This will allow pensions funds to maintain their investment positions and help reduce pressures that the pension fund withdrawal process would have likely generated on bank bonds and...

August 13, 2020
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