May 2017

17May

UK. Pensions tax loophole caused by election

Next month's snap election forced the Government to abandon a number of previously announced policies in the Finance Bill that was going through Parliament when Theresa May made the surprise announcement. One of the policies culled was a cut in the amount you can save into a pension each year, from £10,000 to £4,000, for those who have already used the "pension freedoms" to access their pot. There was no change for people yet to touch their pension, they can...

May 17, 2017
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16May

Canada’s pension fund to invest up to $1.2 bn in India’s real state.

Canadian pension fund, Canada Pension Plan Investment Board (CPPIB), has acquired a majority stake in IndoSpace, the warehousing and logistics real estate arm of the Everstone Group. The pension fund has committed $500 million for the majority stake and will acquire 13 industrial and logistics parks totalling 14 million square feet as part of the deal, the companies announced on Monday. Under the agreement, IndoSpace and CPPIB will create a joint venture IndoSpace Core that will focus on acquiring and developing...

May 16, 2017
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16May

IBM Pension Fund sells most IBM shares

When Warren Buffett, the celebrated investor, billionaire, and chairman of Berkshire Hathaway, makes an investment move, thousands of investors around the globe instantly follow suit. The investment guru is known for his level-headed approach and for his long-range planning, and when he makes a major shift in his positions it tends to draw attention. That was the case in recent months with IBM. Buffett has long been a vocal supporter of the tech giant, and so it shocked many...

May 16, 2017
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16May

‘India ageing gradually; every 5th person to be 60+ by 2050’

India will transform gradually from young to a 'greying' country and by 2050 every 5th Indian will be in 60s as against every 12th at present. Flagging the demographic transition, a PFRDA-CRISIL report today said it is important that the development of the under-penetrated pension market in India be initiated now, when the situation is ripe. "Demographically, India will transition slowly from a 'young' to a 'greying' country, where persons above the age of 60 would increase from 8.9 per cent...

May 16, 2017
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15May

Asia’s ageing population is enough to give policymakers grey hairs

“Asia remains the growth champion of the world,” the International Monetary Fund (IMF) said last week, but in the medium term there’s a large grey cloud on the horizon. Asia is fast getting old and the harsh reality is that it could do so before it gets rich. Policymakers across the region will have to contend with these demographic challenges. “Institutional support is not yet in place to respond to the rapid rise in ageing. Pension systems remain unsustainable despite...

May 15, 2017
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15May

UK. May Pledges Protections for UK Gig Economy Workers, Pensions

Theresa May on Monday will pledge to broaden employment rights in Britain as the country pulls out of the European Union, outlining a raft of promises designed to safeguard pensions, gig economy workers with companies such as Uber Technologies Inc., and wages. The prime minister will say that if her Conservative Party wins the June 8 general election, she’ll follow up on recommendations made in a review into U.K. working practices she commissioned in 2016 by Matthew Taylor, former policy...

May 15, 2017
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15May

Zimbabwe. IPEC drafts law to deal with pension funds trustees

The Insurance and Pension Commission has completed draft regulations that empower it to deal with errant trustees of pension funds, an official said. Commissioner Tendai Karonga said IPEC had observed several poor cooperate governance practices, prompting the commission to come up with tight controls. The draft regulations have already been submitted to the Ministry of Finance for approval. "We are in the process of developing new procedures to control the unacceptable behaviour by some of the trustees," said Mr Karonga "Basically it...

May 15, 2017
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12May

UK. Pensions regulator director to leave for local government scheme

The Pensions Regulator (TPR) director Andrew Warwick-Thompson will leave his role to join the Local Government Pension Scheme (LGPS). Warwick-Thompson (pictured) has been executive director for regulatory policy at TPR since 2013. In the role he is responsible for TPR's policies on pension schemes, including master trusts. Warwick-Thompson will become chief executive of LGPS Central in July, which administers defined benefit schemes for some local authorities in Midlands and the North West. TPR is in the process of appointing a successor to Warwick-Thompson. Lesley...

May 12, 2017
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12May

US. How United Technologies created ‘the retirement plan of tomorrow’

United Technologies Corporation was ahead of its time when it came to employee retirement benefits. The Fortune 500 company — the parent to Otis, Pratt & Whitney, UTC Aerospace Systems and UTC Climate, Controls & Security— made a point of offering its employees an in-plan guarantee of retirement income well before the topic of lifetime guarantees in 401(k) plans took center stage in the national discussion. Five years ago, the company decided to revamp its retirement plan, and worked with Prudential...

May 12, 2017
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12May

UK. ACA opposes additional powers for The Pensions Regulator

On member protection and new powers for the Pensions Regulator, the ACA response says ‘we do not believe that there is any significant evidence that members need additional protection or that substantial new powers are needed for the Pensions Regulator. Whilst several recent high-profile cases have raised the question of whether members have adequate protection, the outcome of these cases has seen members generally receiving (or expecting to receive) benefits above PPF minimum levels, which should be regarded as...

May 12, 2017
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