Job cuts look imminent in the social security sector following the drafting of a bill that seeks to merge four funds into one. Senior managers and operations staff will be hit the hardest as they are likely to be assigned other duties or laid off if the Bill is passed by Parliament and signed into law by the Head of State. Among these who will be affected are the directors general of the four funds, boards of directors and heads...
Canadian public pension funds and pension plans are regarded as among the best in the world, but they underwent an evolution of changes to get to where they are today. Because of their success, the World Bank Group partnered with four Canadian pension funds, Alberta Investment Management Corporation (AIMCo), Caisse de dépôt et placement du Québec (CDPQ), Healthcare of Ontario Pension Plan (HOOPP), and OPTrust, as well as the Government of Ontario on a report that studies the evolution...
Brazil’s Congress may vote in coming weeks on President Michel Temer’s flagship proposal to cap pension spending. Since it was first presented to Congress a year ago, the proposal has been watered down several times in an attempt to secure support the three-fifths majority needed in both houses. The Temer administration now expects to guarantee at least 50 percent of the 750-800 billion reais ($230-246 billion) in savings envisaged over a decade in the original proposal. The following charts show...
Europe is getting old. Ageing population is a luxury good hardly any country can afford. It has been one of the main policy challenges in the Union. Increasing old-age dependency ratio will widen the pension gap and make current pension systems unsustainable. Over the past decades, politicians have been in a rambling quest to close the gap. Their confidence in finding a solution must have been restored after the Commission Vice-President Valdis Dombrovskis announced the so-called pan-European Personal Pension...
Combatting climate change hinges on divestment of fossil fuels across all spheres of activity. According to scientists, we are facing an impending disaster if we do not stop burning fossil fuels. Therefore, companies must reduce their carbon footprint to net zero, and carbon-based firms that cannot or refuse to change must wind down. Communities with significant economic dependence on firms that refuse to change must invest in and attract clean sustainable industries instead. Communities have to act now so as to...
Asset management in the Nordic region is dominated by Norway’s $1 trillion sovereign wealth fund, which last week said it wants to exit all its oil and gas stocks. Bloomberg spoke with institutional investing heads in Sweden, Norway, Denmark and Finland who together help manage a total of $670 billion, to hear their reactions. Here’s what they said: Seminal Moment Norway’s wealth fund “is clearly indicating that this is a completely new ball game,” said Sasja Beslik, head of group sustainable finance,...
Municipal pension plans are in a tough spot. They have trillions of dollars in unfunded liabilities, interest rates are low, and we’re coming up on the ninth consecutive year of stock market gains in the U.S. Municipalities are going to have a hard time balancing their need to take risk against their reluctance to do so in this environment. The largest U.S. pension fund is considering making a change by reducing equity risk in its portfolio. The California Public Employees’...
The speaker of Brazil’s lower house said on Tuesday that it will not be easy to obtain the 308 votes needed to pass a much anticipated pension reform, but that doing so is “fundamental and urgent” for the country. In an interview with Brazil’s CBN radio, Maia said it was important that the government completed a reform to Brazil’s ministerial framework soon, so that it can advance in negotiations regarding pensions. Source Reuters
Mexico’s leftist presidential hopeful Andres Manuel Lopez Obrador vowed on Monday to boost infrastructure spending but guard economic stability, while his team reiterated that ongoing NAFTA talks should be put off until after next year’s election. Lopez Obrador, the front-runner in most polls ahead of the July vote, unveiled a platform that envisioned an austere government to root out corruption and redirect spending to public works and social programs without new taxes or raising the debt-to-GDP ratio. He rebutted claims he...
Prime Minister Theresa May is ready to put more money on the table to settle the Brexit divorce bill -- but the Brits are plugging away at getting the European side to give her something in return. “We’re headed in the right direction and what matters now is that the U.K. and EU take a step forward together,” James Slack, May’s spokesman, told reporters on Tuesday in a sign that any improved offer on the bill must be matched with...
