April 2018

Zimbabwe. Health, pension deal for informal sector

The National Social Security Authority (NSSA)’s much-awaited pension and health insurance schemes for the informal sector have been established, with paid-up beneficiaries being entitled to retirement pension, survivor’s pension, funeral grants and health insurance coverage. The three voluntary schemes — Informal Sector, Health Insurance and Maternity Protection — will also include retirement grant, survivor’s grant, invalidity pension, invalidity grant and maternity cover as benefits. The schemes will come as a boost to most informal sector workers and self-employed actors who have...

India. Pension Scheme APY: Invest 210 Rupees Per Month To Earn A Pension of Rupees 5,000 Per Month

Rs. 5,000 per month. If that is the pension you desire after turning 60, you can take two routes - either invest Rs. 210 per month for 42 years or invest Rs. 1,454 per month for 20 years. Pension scheme APY or Atal Pension Yojana is a government-run scheme mainly focused on the unorganised sector employees. One can start investing in this pension scheme between 18 and 40 years of age to earn a fixed minimum monthly pension of...

Ireland. Using the right language is key to pension plan success

Pitching the pension message to workers will be key to the success of Government plans to introduce auto-enrolment in 2022. That’s the view of one industry expert who argues that an appreciation of human behaviour and close attention to the importance of language will determine how well the project is received. Ireland has struggled over recent decades to increase the number of private-sector workers putting money into pension savings. Despite myriad reports and several different initiatives – as well as generous...

Spanish Pension: Adjusting Biological Life Expectancy To That Of Social Life

The IMF highlights that the Spanish population, like that of other developed economies, will age over the coming years. The number of pensioners is increasing faster than the number of active workers. So the average salary is beginning to come in at the same level or below that of the average pension. In 2007, the number of pensioners stood at 6.4 million and in 2017 9.6 million. The Social Security forecasts that between 2017 and 2022, the deficit between contributions...

US. Home Depot hit with ERISA class action claiming retirement plan mismanagement

Two former Home Depot Inc workers on Thursday filed a proposed class action in Atlanta federal court seeking $140 million in damages for the alleged mismanagement of the company’s employee retirement plan. The workers alleged Home Depot violated its fiduciary duties under the Employee Retirement Income Security Act by selecting poorly performing funds, allowing advisors to charge unreasonable fees and by not identifying a kickback scheme between an advisor and the plan’s recordkeeper. Read More: Reuters

Malta. Pension schemes, funds licence extension

BOV Asset Management Ltd (BOVAM) has been granted the licence to provide investment management for personal retirement schemes, occupational retirement schemes and retirement funds in terms of the Retirement Pension Act. BOV Asset Management Limited requested the extension of the licence following the legal notice that was issued last year intended to promote voluntary occupational pension schemes in Malta. In the 2017 Budget, the government announced the introduction of various fiscal incentives to encourage employers to set up voluntary occupational pension...

US. Association Retirement Plans – An Idea Whose Time Has Come

Recent press accounts have noted that two educational institution associations recently established group retirement plans for their employer members. Such association retirement plans offer potential cost savings and administrative ease to participating employers, and we expect to see more of them in the future. An Association Retirement Plan – What Is It? An association retirement plan is a single retirement plan – either a 403(b) plan (for 501(c)(3) organizations) or a 401(k) plan (for other types of organizations) – that is...

China. Shanghai to trial commercial pension model

Shanghai will launch a pilot program to offer tax benefits to entice the city's aging population to buy commercial pension insurance from May 1, said a statement by the Ministry of Finance yesterday. Under the program, buyers of commercial pensions will enjoy tax exemption of up to 1,000 yuan (US$159) of their monthly income. The pilot stipulates that the eligible commercial pension must be invested in low-risk or risk-free areas, and needs to be approved by the ministry, according to the...

How developing countries weave social safety nets

SOUP kitchens serve the needy for free; restaurants serve the hungry for money. In parts of South Asia, eateries near mosques sometimes fall into a third category. They feed the poor sitting patiently outside, whenever a pious or charitable passer-by pays them to do so. Alms-giving of this kind provides one traditional safety net for the destitute in developing countries. But it is, thankfully, not the only one. Read More: Economist

France. Defiant Macron to push through reforms despite strikes

French President Emmanuel Macron will stick to his plans for sweeping reforms despite strikes and street protests, he said on Thursday in his first TV interview in months, adding that he is not one to govern based on opinion polls. Since his election last May, Macron’s popularity has declined because of significant changes to France’s labour rules and a series of other reforms, including to debt-laden rail operator SNCF, taxes and parliament. “That some people are not happy doesn’t stop me,”...