August 2017

11Aug

UK pension risk transfer to re/insurers to reach £700 billion by 2032

Demand for bulk annuity buy-ins is expected to quadruple over the next 15 years as £700 billion worth of defined benefit pension scheme liabilities are expected to be passed to insurers by 2032, according to a Hymans Robertson report. Around one-third of current defined benefit (DB) pension risk schemes are expected to reach self-sufficiency over the next 15 years as UK firms increasingly look to offload this risk, the report found. James Mullins, Head of risk transfer buy-out solutions at Hymans...

August 11, 2017
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11Aug

Tata Steel Gets Regulatory Approval for UK Pension Deal

India's Tata Steel has received regulatory approval for a UK pension deal, it said on Friday, paving the way for a possible merger between its British and European steel assets and those of Germany's Thyssenkrupp. With the new agreement coming into effect, the UK pension scheme will be separated from Tata Steel UK and a number of affiliates, the company said. (http://bit.ly/2vt3uAD) Tata Steel will pay 550 million pounds into the British Steel Pension Scheme and will also give one of...

August 11, 2017
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11Aug

Canada. Union takes over aerospace plant in Milton, Ont., to protest pension shortfalls

The union representing workers at an aerospace plant in Milton, Ont., says its members have occupied the facility and stopped production in protest of pension cuts. Scott McIlmoyle, president of Unifor Local 112, says they entered the Northstar Aerospace west of Toronto at about 4 a.m. Thursday. He says the shutdown is in response to Northstar refusing to fund a 24 per cent shortfall in workers’ pensions at the plant. The union says the company has announced the relocation of the Milton...

August 11, 2017
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11Aug

US. How Does Social Security Fit Into Retirement Plans?

Social Security is America's largest retirement plan, by far. Almost nine out of 10 Americans age 65 or older receive Social Security, and for most retirees, Social Security is a crucial source of income that helps provide stability and financial freedom. Here's what Social Security means to your retirement, how much you can expect to get, and whether you should worry about Social Security's future or not. Social Security will likely be a major source of your retirement income Social Security...

August 11, 2017
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10Aug

Jamaica. NCB Insurance wins third consecutive World Finance Pension Award

NCB Insurance Company Limited’s (NCBIC) pension fund management services is among the most financially stable and innovative in the world. So surmises World Finance in a July 6 press release announcing its 2017 Pension Fund Awardees. NCBIC received the 2017 title for the best pension fund manager in the Caribbean. This is the company’s third consecutive win and its fifth in seven years having copped the title in 2011, 2012, 2015 and 2016. “We are truly honoured to have been selected another...

August 10, 2017
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10Aug

UK. Tata Steel Set to Offload £15 Billion Pension Fund

Global steel producer Tata Steel is poised to offload its £15 billion ($19,5 billion) British Steel retirement fund to the U.K.'s Pension Protection Fund, with a formal announcement expected on Friday, according to a trade union spokesman. The news follows the company's confirmation in March that it would close its existing defined benefit scheme. Since April 1, British Steel has been offering employees a defined contribution scheme in its place. The British Steel Pension Fund has around 13,000 members. In its quarterly...

August 10, 2017
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09Aug

UK. Pensioners’ incomes rapidly catching up with workers’ after retirement earnings triple in 40 years

Retired households have tripled their incomes in the past 40 years, substantially narrowing the gap in earnings with working-age households. Back in 1977 the average pensioner household’s income was £10,500 (in 2016 prices, which account for inflation), just 52pc of the £20,200 earned by non-retired households. But by the financial year ending in 2016 those pensioners’ incomes had risen to £29,500, according to the Office for National Statistics. By contrast, non-retired households’ incomes had only doubled, rising to £41,900 on average. On average...

August 9, 2017
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09Aug

Nigeria Uncovers N5.7bn Pension Fraud in Eight Years

The Niger State government on Tuesday confirmed that after “a forensic audit of the contributory pension scheme during the period 2007-2015”, it has been established that the sum of N5.779 billion was not remitted to the Pension Board. The amount was less than the over N6.2 billion initially thought to have been siphoned. The state acting Governor, Alhaji Ahmed Mohammed Ketso, disclosed this when he addressed the opening of a three-day sensitisation workshop on “Effective Pension Management and Administration in Niger State”...

August 9, 2017
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08Aug

India. Can Pensioners Be Divided Into Arbitrary Categories To Deny Rightful Pension, SC Set To Give A Ruling

The Supreme Court bench of Justices Adarsh Kumar Goel and Uday Umesh Lalit, on August 1 concluded hearing the arguments and reserved its judgment in the case of United Bank of India v United Bank of India Retirees Welfare Association & Others. This is an appeal against the Calcutta High Court’s Division Bench judgment, delivered on September 26 last year. The case raises an interesting issue on whether an invidious classification can be made between employees, who retired before...

August 8, 2017
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08Aug

Surprise fall in UK inflation wipes £9bn off pension deficits

That is according to Mercer’s latest Pensions Risk Survey data, which shows that their liabilities decreased by £4bn to £865bn during that time, while asset values increased by £5bn to £743bn. This comes after the Office for National Statistics (ONS) revealed an unexpected fall in inflation for June, which is thought to have reduced market implied inflation over July. “The trend of improvements continues during July, and was largely driven by a small reduction in market expectations for long-term inflation, which...

August 8, 2017
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