September 2020

02Sep

Bitcoin As a Retirement Plan Investment?

The cryptocurrency is legally permissible as a 401(k) investment under ERISA, but some plan sponsors may have questions about whether it is prudent. Bitwage launched what it touted as the “world’s first Bitcoin 401(k) plan” in May. Bitwage provides cryptocurrency payroll and invoicing services. It says the 401(k) offering is a four-way strategic collaboration between Bitwage, Leading Retirement Solutions, Kingdom Trust and Gemini. Leading Retirement Solutions provides the administration and recordingkeeping for the 401(k) plan. Kingdom Trust is the custodian,...

September 2, 2020
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01Sep

Canadian Pension Fund Returns Pressured, Long-Term Strategy Intact

Recent interim and fiscal year results from Canadian pension funds reflect the negative impacts from the coronavirus pandemic on valuations, with underperformance in early 2020 relative to targeted returns, says Fitch Ratings. Still, funds reporting results through June 30, 2020 also reflected a subsequent rebound in performance in the equity markets and credit spread tightening in 2Q20. Long-term fund performance will depend on asset mix, which is largely influenced by a plan's maturity and risk appetite, future market volatility...

September 1, 2020
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01Sep

Many Chinese women unprepared for retirement risk: survey

There is not enough awareness amongst Chinese woman concerning risks associated with retirement, a new study finds. The first retirement risks management white paper focusing on women, done by Manulife-Sinochem with the Fudan Development Institute, found less than half (47.4 percent) of those interviewed said they have pension insurance policies. In terms of the choice of protection, interviewees were generally worried about large medical expenditures, accessibility to care services, accidents and insufficient income. China’s population is aging – a...

September 1, 2020
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01Sep

How can cities adapt to the needs of their aging populations?

Long before COVID-19 had us rethinking just about every aspect of how we live, demographers and experts on aging were already considering what the future will look like for the world’s cities. A decade from now, roughly 3 of every 5 people on the planet will live in cities, and that population is getting older than the urban dwellers of the past. On top of that, aging populations will double between now and the end of the century. Add...

September 1, 2020
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01Sep

Cayman. Government mulls pension holiday extension

Premier Alden McLaughlin has indicated that government is considering an extension of the current pension holiday. Implemented as a COVID-19-assistance measure, the moratorium is set to expire at the end of September. It follows legislative changes earlier this year granting workers access to their private-sector pensions as temporary economic relief in the aftermath of the closure of local borders and subsequent rise in unemployment. McLaughlin, when asked by the Cayman Compass last week about a possible extension, said at...

September 1, 2020
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August 2020

31Aug

India. PFRDA mulling launching minimum assured return-based pension scheme

The Pension Fund Regulatory and Development Authority (PFRDA) is working on a minimum assured return-based pension scheme, its Chairman Supratim Bandyopadhyay said. The pension authority is in talks with pension funds and actuarial firms to work out the modalities of the proposed scheme, he said. "Under the PFRDA Act, we have the mandate to launch a minimum assured return scheme. Under pension fund (PF) schemes, the funds that are managed are mark-to-market. So obviously there is some volatility and...

August 31, 2020
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31Aug

Irish pension money in equities reduced – report

Irish defined benefit pension schemes have reduced their equity allocations by almost a third in the past three years. Equity allocations for Irish defined benefit schemes fell to 27pc this year, compared to 39pc in 2017. This is according to the 2020 ‘European Asset Allocations’ report from Mercer. The report finds that allocations to fixed income investments like corporate bonds over the same period have risen to 50pc from 48pc. The allocation to assets like property, private equity and...

August 31, 2020
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31Aug

Korean pension funds cushion pandemic impact in H1

South Korea’s pension funds took positive returns in the first half of this year, as they managed to weather the impact of the novel coronavirus on financial markets across the globe, disclosures showed Monday. The National Pension Service, Korea’s largest public pension fund with 752.2 trillion won ($635.5 billion) assets under management, posted a 0.5 percent return Friday as its stock losses were offset by fixed-income assets and alternative investments. By asset classes, from January to June, NPS took...

August 31, 2020
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31Aug

US. The Contribution Conundrum For Underfunded Plans

Reduced PBGC variable rate premiums may make now an optimum time to contribute. Plan sponsors undertaking risk-transfer activities in underfunded plans should consider contributing additional assets to maintain funded status equivalence. For some plans, low borrowing rates may present an opportunity. At the end of March 2020, the CARES Act was signed into law. One impact of this legislation for defined benefit plan sponsors is that any contributions that were required during 2020, either quarterly contributions or those...

August 31, 2020
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28Aug

UK. The Department for Work and Pensions publishes consultation on pension climate risk

The Department for Work and Pensions (DWP) has published a consultation, setting out proposals for larger occupational pension schemes and authorised master trusts to publish their climate risk financial disclosures. The consultation, published 26 August 2020, recommends that trustees of large occupational pension schemes must have effective governance, strategy, risk management and accompanying metric targets, to manage climate risk and opportunities in the market from October 2021. The DWP has recommended that trustees calculate the carbon footprint of pension...

August 28, 2020
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