December 2018

07Dec

Canadian taxpayers subsidize government pensions to the tune of $22 billion a year

Government employees don’t pay the full cost of their defined-benefit pensions. Taxpayers provide a $22 billion annual subsidy by assuming undisclosed investment risks for which they are not compensated, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank. “The issue is not whether government employees should have defined-benefit pensions, but rather how much they should pay for these pensions,” said Philip Cross, Fraser Institute senior fellow and co-author of Risk and Reward...

December 7, 2018
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07Dec

UK. Devilish details of where pension transfers went wrong

The failure of senior management at advice firms to identify the risks associated with defined benefit transfers, was named as one of the reasons behind widespread problems in the field. The Financial Conduct Authority published the findings of its recent investigation of pension transfer advice today (December 6), saying less than 50 per cent of the advice it had reviewed was deemed suitable. The regulator had looked at 18 firms, which had given advice to 48,248 clients on their defined benefit...

December 7, 2018
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06Dec

UK. Pension scam enquiries up 462%

Visits to the FCA’s Scam Smart website have increased 462 per cent in less than two months following its joint scam awareness campaign with The Pensions Regulator. The Scam Smart site – which allows people to compare pension fund options and find information on potential scams – previously had an average 562 page views daily. This rose to an average of 3,145 a day in the 55 days immediately following the summer campaign, the regulators have said. The regulators’ campaign is calling...

December 6, 2018
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06Dec

Nigeria: Military alerts public on scam on retirees

Nigeria’s Military Pension Board (MPB) has alerted retirees and families of deceased personnel of the circulation of “fake and malicious” messages by impostors to defraud them of their hard earned income.The Public Relations Officer, Flt.-Lt. Obasi Okoroafor, said the board has advised them to promptly report such fraudsters to the nearest military unit. Okoroafor said the MPB was dismayed by the circulation of the fraudulent messages by mischievous elements claiming to be its agents. “The dubious messages request for money from...

December 6, 2018
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06Dec

US. Pensions Are a Hot Recruiting Tool in Health Care: Cerulli

Many hospitals' DB plans are not as well-funded as other corporate pensions, Cerulli reports. Even as most organizations have moved away from defined benefit plans in favor of defined contribution plans, not so health and hospital systems. Instead, according to research from Cerulli Associates, some within the health care industry that are having a rough time attracting and hanging onto talent are looking to leverage pensions as a recruitment tool. “While corporations are generally moving toward defined contribution plan offerings, health and...

December 6, 2018
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06Dec

UK pension funds may have to clear, post-Brexit

Delays to Emir review raise fears that UK schemes may lose exemption Large UK pension funds may have to start clearing derivatives trades with European counterparties in the event of a no-deal Brexit, lawyers warn. The funds are currently exempt from clearing thanks to a carve-out from the European Market Infrastructure Regulation. But once Britain leaves the European Union, UK funds will be considered “third-country” entities – unless regulators strike a deal on equivalence. “From the point of view of a bank...

December 6, 2018
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05Dec

UK. BT loses appeal to change method of pensions calculation

BT has lost a legal bid to make changes to its pension scheme that unions claim would have transferred an estimated £2bn of wealth from scheme members to shareholders. The court of appeal dismissed the company’s request to change the way it calculates increases to pensions – a move that would have affected more than 80,000 members of the scheme. These members each typically stood to lose an estimated £24,000 in future pension benefits if the appeal had been upheld, according...

December 5, 2018
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05Dec

Who Wins The Retirement Game?

On the plane to a family Thanksgiving a nice seatmate asked what kind of work I do (as she watched me struggle with a spreadsheet). I brightly told her I am an economics professor working to expand pensions to solve the retirement crises. She looked at me blankly and said, "I'm Canadian, we don't have these problems. That stopped me short. Really? Canada? Has the friendly nation to the north figured it out? Canada has been described, in jest of course,...

December 5, 2018
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05Dec

Brazil. Bolsonaro begins political contacts to address pensions scheme with piecemeal reforms

Right-wing President-elect Jair Bolsonaro said on Tuesday he plans to tackle the overhaul of Brazil's fiscally burdensome pension system with piecemeal reforms that can pass Congress, starting with an increase in the minimum age of retirement. He said reforms should start with the public social security system and advance gradually to make sure they pass Congress. ”The idea is to start with the (minimum) age, attack the privileges and take it forward,“ Bolsonaro said at a news conference, warning that...

December 5, 2018
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05Dec

Kenya. Review of pensions law underway: Yatani

There is need to review the pensions law to ensure what retirees are paid reflects prevailing cost of living, Labour and Social Protection CS Ukur Yatani has said. "In pursuit of your association's objectives, working in close collaboration with your representatives, my ministry has developed a memorandum that will be submitted to the Cabinet soon for consideration and necessary action,” said Mr Yatani during the annual general meeting of Kenya Association of Retired Officers (KARO). The memorandum highlights, among others,...

December 5, 2018
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