July 2019

15Jul

US. Congress Moves to Put Pension Benefit Guaranty Corporation On Taxpayer Dole

The Ways and Means Committee of the House just approved a bill for a big taxpayer bailout of private multi-employer/union-sponsored pension plans. Many of these plans are hopelessly insolvent. In other words, they have committed to pay employee pensions far greater than they have any hope of actually paying. In the aggregate, the assets of multi-employer plans are hundreds of billions of dollars less than what they have solemnly promised to pay. There is an inescapable deficit...

July 15, 2019
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12Jul

Informality and the Challenge of Pension Adequacy: Outlook and Reform Options for Peru

Past reforms have put the Peruvian pension system on a largely fiscally sustainable path, but the system faces important challenges in providing adequate pension levels for a large share of the population. Using administrative microdata at the affiliate level, we project replacement rates in the defined benefit (DB) and defined contribution (DC) pillars over the next 30 years and simulate the impact of various reform scenarios on the average level and distribution of pensions. In the DB pillar, the...

July 12, 2019
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12Jul

China to step up state asset transfers to pension funds amid sustainability concerns

China will expand a pilot program this year to transfer government holdings in state-owned enterprises to social security funds nationwide in response to concerns about the sustainability of the pension system, said Caixin. The State Council decided at an executive meeting this week to fully push for the transfer of 10% of the equity in state-owned companies to the national social security fund and relevant local entities. The move is a further implementation of a 2017 trial plan that was limited to...

July 12, 2019
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12Jul

Pensions in Germany will be 100 percent taxable by 2040

Many-a-person in Germany breathes a sigh of relief upon entering retirement: “Finally, an end to all that taxation!” It may come as a nasty surprise, therefore, that around a quarter of pensioners in Germany still have to pay income taxes - and the number is set to increase over the next few years. One in four pensioners in Germany paid income tax in 2015 According to official figures from Destatis, the Federal Statistical Office, in 2015 around 21,2 million people in Germany were receiving either a...

July 12, 2019
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12Jul

World Finance declares winners of 2019 Pension Fund Awards

Pension funds are on the precipice of a dramatic overhaul. Due to the sector’s historically risk-averse nature, underperforming players have been able to slip under the radar, with retirement savers simply accepting low returns as par for the course. This year, however, has seen a substantial rise in regulatory appetite, meaning funds that are not delivering for investors risk being wiped out. In these testing times, a strong sense of direction and adaptability are key qualities that set leading firms...

July 12, 2019
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12Jul

America’s biggest pension fund falls short of its own goals

The US’s largest pension fund fell just short of its investment target in fiscal 2019, underlining the difficulty of earning the kind of returns state and local funds need to pay future benefits. The California Public Employees’ Retirement System earned 6.7% in the year ending June 30, it said Thursday. Its goal is 7%. The performance leaves the retirement system known as Calpers with 70% of what it needs to afford all future obligations to public workers across the state of California.... Read More: @Fnlondon

July 12, 2019
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11Jul

Africa. Efforts intensify on drafting social protection policy

The Constitution of Namibia, Article 95, requires the state to actively promote as well as maintain the welfare of people and create equal opportunities. Zephania Kameeta, Minister of Poverty Eradication and Social Welfare this when officially opening a regional consultative workshop on the Social Protection Policy Draft at Keetmanshoop earlier this week. The parliamentarian then explained that this draft aims specifically to address vulnerabilities, tackle social exclusion and eradicate poverty. He continued by referring to the Namibian Constitution...

July 11, 2019
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11Jul

Brazilian President Jair Bolsonaro pension reform passes first vote in Congress

Brazilian President Jair Bolsonaro's ambitious pension reform bill passed an initial vote in Congress Wednesday, a major step for his efforts to boost confidence in the country's lagging economy. In the first of two votes, the lower house of Brazil's Congress approved the reform measure, a boon for Bolsonaro whose signature economic policy has faced stiff resistance from trade unions and a hostile Congress. Social activists and union members protested the proposed measure in Sao Paulo on Wednesday evening....

July 11, 2019
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11Jul

China’s social security funds to be replenished with state capital

China will replenish social security funds through the injection of state capital this year to make the funds more sustainable. Policies to reduce employers' contributions to social insurance schemes will be further implemented to ensure that pensions are paid on time and in full. The decision was made at the State Council's executive meeting chaired by Premier Li Keqiang on Wednesday. Li has set out measures for such capital transfer in the Government Work Report for four consecutive years....

July 11, 2019
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11Jul

UK. Women face £100k pensions gap

Women in their 60s expect to have accrued a pension worth £51,100 to retire on, amounting to only a third of the value saved by men, at £156,500. A report out this morning (July 11) showed that in order for women to draw the same pension income as men, they would need to have saved about 5 to 7 per cent more by retirement age. The report Facing an unequal future - closing the gender pensions gap was compiled...

July 11, 2019
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