March 2017

21Mar

Future savings and pension challenges need a new system

OUR retirement savings and pension systems face unprecedented pressures. Today’s western societies operate pension systems for lives of three score years and ten and populations with lots of young people and few retirees. Those assumptions no longer apply. Indeed, we’re not even sure when workers in their 20s, 30s, or even 40s can expect to retire or if they will do so at all. Much of the UK’s problems are because the state pension system is unfunded. What’s called our “National Insurance...

March 21, 2017
News, Savings
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21Mar

U.K. Pensions Schemes Budget and more

Contents Spring Budget 2017 Qualifying recognised overseas pension schemes (QROPS) Pension flexibility - reporting of non-taxable death benefits through Real Time Information (RTI) Relief at Source Scottish rate of Income Tax Lifetime Allowance Pension scheme registrations Appendix 1 - Overseas transfer charge, pension scheme members Appendix 2 - Overseas transfer charge, overseas scheme managers Full Content: Gov UK

March 21, 2017
News
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21Mar

India. Bank retirees demand better pension structure in Andhra

Nearly 500 bank retirees from Vijayawada have decided to take part in a protest at Jantar Mantar in Delhi on March 23. The retired employees of Krishna district want the Indian Banks Association (IBA) to update their pension schemes and hold talks with the All India Bank Retirees Federation (AIBRF). The members of the committee accused the IBA of not implementing the Pension Regulation Act for the last 23 years. The association is also demanding revision of family pensions from...

March 21, 2017
News
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21Mar

Canada Pension Plan looks to raise its bet on China

China's gradual market liberalization may be good news for Canadian pensioners. Canada Pension Plan Investment Board (CPPIB), the country's largest pension fund, currently has 4 percent of its portfolio in the mainland — a figure that president and CEO Mark Machin said is too low for a globally diversified portfolio such as his. But he plans to increase that share as the world's second-largest economy opens itself up. "We want to significantly increase our investment here over the long term," he said,...

March 21, 2017
News
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21Mar

Teacher Pensions in Puerto Rico

You are right in identifying the underfunding of teacher pension funds in Puerto Rico as a big problem: Teachers and public employees have fulfilled their commitment to their pensions by contributing year in and year out, yet politicians failed to properly fund them and engaged in risky financial bets that made things only worse. In Puerto Rico, between 2007 and 2013, the government shortchanged the teachers’ pension plan by $2.6 billion. Government advisers then pushed deals with hedge funds and...

March 21, 2017
News
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20Mar

UK. New tax raid on pensions: OUTRAGE at Hammond’s plans to fill £2billion budget blackhole

After a bruising week where the Chancellor had to reverse a planned tax on the self employed from his Budget, he has identified pensions as “top of his list" to raise funds. But former pensions minister Baroness Altmann has warned that the move could have political consequences by hitting the Tory party's core vote. And Ukip has called on him to dip into the protected £12 billion aid budget to help fund care for the elderly instead of spending taxpayers' cash...

March 20, 2017
News
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18Mar

Why is Brazil pushing ahead with contentious pension reform?

After the impeachment of Dilma Rousseff, Temer ascended to the presidency promising wide-scale economic reform. Temer has since unveiled a Private Partnership Investment Program (PPI), which seeks to lift Brazil dramatically out of recession. On March 7th, the fiscal plan gained momentum following the unveiling of 55 privatized infrastructure concessions, with investments valued at $14.4 billion. The hope is that a sweeping privatization program will encourage a boom in investment and public spending. As of yet, Temer’s policies have not...

March 18, 2017
News
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17Mar

UK’s pensions rescuer warns of zombie attack

For a man who might be considered to have one of the stuffiest jobs in Britain, Alan Rubenstein does not conform to type. As chief executive of the Pension Protection Fund, the 60-year old qualified actuary and former Lehman Brothers investment banker has just celebrated his ninth year as the UK's chief rescuer of crisis-hit pension funds. Full Content: Financial News

March 17, 2017
News
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17Mar

US. Retirement industry to undergo major changes with or without DOL fiduciary rule

The business of saving for America's retirement is changing. The retirement industry is facing a $7.7 trillion gap, and the Department of Labor's new fiduciary rule, which states that advisers must give clients the best advice at a reasonable price, is at risk. The rule was originally supposed to take effect on April 10, but President Donald J. Trump in February ordered its review, resulting in the DOL's recent proposal to delay the rule's implementation for 60 days. Regardless of...

March 17, 2017
News
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17Mar

UK. It may be a case of prepare a proper pension or prepare for poverty

Pensions are undergoing some radical changes. Many more workers are accessing pension schemes through auto-enrolment, even if the adequacy of many of these schemes is poor. Good quality Defined Benefit (DB) – where you know what you put in and what you’ll get out – schemes are being replaced by often poor quality Defined Contribution (DC) – where you only know what you’ll put in, not what you’ll get out. DC schemes shift the investment risk from employers to...

March 17, 2017
News
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