February 2025
13Feb

US. DOL Finalizes Update to Voluntary Fiduciary Correction Program

On January 15, 2025, the Department of Labor (“DOL”) issued notice amending its Voluntary Fiduciary Correction Program (“VFCP”), along with related final amendments to Prohibited Transaction Exemption 2002-51 (“PTE 2002-51”), which provides exemptive relief for certain transactions identified in VFCP.  Most notably, the final amendments allow plan fiduciaries to self-correct late-deposited participant contributions or loan repayments, as well as certain other participant loan errors by filing a notice of correction with DOL, in lieu of filing a full VFCP...

February 13, 2025
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13Feb

How to unlock the potential of micro pension schemes

The informal economy plays a critical role in Kenya, contributing significantly to economic growth and vitality. Comprising diverse workers, from market traders and artisans to small-scale entrepreneurs and gig workers, this sector represents the backbone of the country's workforce. Yet, despite its significance, individuals in the economy often find themselves excluded from traditional pension arrangements. The absence of employer-provided benefits and access to formal pension schemes leaves millions vulnerable, with little to no safety net to secure their futures when they are...

February 13, 2025
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12Feb

Global pension assets climb to record $58.5 trillion

Global pensions assets rose by 4.9% year-on-year in 2024, reaching a record USD 58.5 trillion, led by growth in the largest DC markets, according to the Thinking Ahead Institute’s (TAI) latest Global Pension Assets Study. This compares to USD 55.7 trillion at the end of 2023, when the same study by the TAI measured a return to growth after the sharp fall in global pension assets in 2022. Despite the rise in overall assets, there are significant differences between regions. The US...

February 12, 2025
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12Feb

Blue state US pension funds ‘lack consistency’ on climate voting

The Sierra Club has warned of “problems with consistency” at US public pension funds in its latest analysis of sustainability-related voting, with differences in support across resolutions and a reluctance to oppose directors at climate laggards. The group last year analysed a number of pension funds in Democrat-leaning states, and has now expanded to include large funds in Republican-leaning and swing states, meaning the latest edition covers more than 30 of the “largest and most influential public pension funds in...

February 12, 2025
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12Feb

Poverty hits older adults harder in fast-aging society

Kim Young-soon, an office cleaner in her early 70s, says she grapples with high costs of living as her disposable income has been decreasing in recent years. Disposable income refers to the amount of money that is left for personal expenses and savings, after taxes, insurance, interest and other payments. “The employer would not hike my salaries, due to the high vacancy rate of office buildings amid the sluggish economic growth,” Kim said, adding she is financially distressed with high borrowing...

February 12, 2025
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12Feb

UK. Labour Confirms No WASPI Compensation Despite Ombudsman Findings

The Labour government has announced that it will not provide compensation to WASPI (Women Against State Pension Inequality) campaigners, despite findings of maladministration by the Parliamentary and Health Service Ombudsman (PHSO). The decision comes after years of campaigning by women born in the 1950s, who argue that failures in state pension communication left them financially unprepared for increases to the state pension age. While the government has accepted the ombudsman’s findings and apologised for delays in notifying affected women, it has ruled out compensation, citing the difficulty of identifying those who suffered financial losses and the potential...

February 12, 2025
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11Feb

UK. Bereaved families asked to return pension overpayments

Bereaved relatives have been asked to repay state pensions that were wrongly sent to people who have died by the Department for Work and Pensions (DWP). The DWP has confirmed it has no legal right to reclaim the money but argues that it does so to protect public funds. Former Pensions Minister Sir Steve Webb says the letter the department sends out to families does not make it clear the repayments are voluntary. Over the past five years, the DWP mistakenly paid more...

February 11, 2025
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11Feb

South Korea. Concerns grow over sustainability of national pension fund amid decreasing subscribers

The number of national pension subscribers continues to decline due mainly to the low birthrate and aging population, data from the National Pension Service (NPS) showed Sunday, raising concerns over its sustainability. In contrast, the number of recipients is increasing, pushing the current national pension system toward a risk of fund depletion. But discussions on ways to make the pension system more sustainable have been delayed. According to the NPS, the total number of national pension subscribers stood approximately at 21.81...

February 11, 2025
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11Feb

Greece. Pension boost for working retirees

Thousands of Greek retirees who continue working are seeing an increase in their pensions, as the country’s social security fund (EFKA) has started issuing adjusted payments. To prevent these new pensions from facing higher deductions under the Solidarity Contribution for Pensioners (EAS), the Ministry of Labor and Social Security is preparing a legislative amendment that could soon be introduced in Parliament. According to sources, the proposed amendment ensures that if a retiree’s primary pension is already subject to the EAS, the...

February 11, 2025
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10Feb

Chile’s Pension Reform Makes a Case for Political Compromise

Last week, Chile’s Congress broke a decade-long impasse and approved a pension reform, a flashpoint in Chilean politics. The green light represents a legislative victory for President Gabriel Boric in the last full year of his administration. However, while Boric can claim that his government will leave a meaningful legacy, he’s giving up a central point in his reform agenda: the elimination of the Pension Fund Administrators (AFPs). The approved reform differs significantly from the government’s initial proposal submitted in November 2022,...

February 10, 2025
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