Deficits also worsened for the year ended Sept. 30, from £117.6 billion, said an update Tuesday by the London-based PPF. The PPF is the lifeboat fund for the defined benefit plans of insolvent U.K. companies. The funding ratio of the corporate pension plans worsened to 91.4% as of Sept. 30, down from 92.6% as of Aug. 31. The funding ratio was 93.6% as of Sept. 30, 2019, the update said. Assets were up 0.94% during the month...
AAP FactCheck Investigation: Does superannuation cost New Zealand 4.4 per cent of GDP each year – and is this low by international standards? THE STATEMENT “The reality is we are way below the international cost of superannuation, we are about 4.4 per cent of GDP.” Winston Peters, New Zealand First leader and deputy prime minister, October 8, 2020. THE ANALYSIS New Zealand First leader and deputy prime minister Winston Peters has defended the cost of New Zealand’s superannuation scheme,...
We have come a long way since publication of the draft tax Bills on 31 July this year, and on 7 October 2020, the Standing Committee on Finance (“the Committee”) heard oral submissions on the proposed tax amendments. As one of the few tax firms who made oral submissions to Parliament, we can confirm the most debated amendment remains the one around government’s intention to impose a three-year lock-in period on retirement funds when a person emigrates. Background...
Global insurance and reinsurance brokerage, Aon, predicts that the risk settlement market could still reach £50 billion by the end of 2020. The 2020 result for the risk settlement market, including both bulk annuities and longevity swaps, could make it a record year, despite the difficulties that have arisen from the COVID-19 pandemic. Whilst Aon’s risk settlement team has seen fluctuating levels of market activity during the past nine months, it expects to see a late surge in deal...
A new law has been introduced for Portuguese occupational pension funds requiring them to prepare a statement of investment policy principles detailing their approach to risk and to environmental, social and governance (ESG) factors. The law, which took effect last August, said the statement must include the methodology for assessing investment risk; risk management processes applied; and the asset allocation strategy followed, taking into consideration the type and duration of pension liabilities, as well as ESG factors. The statement...
Labor MP Stephen Jones has joined ASFA and the Business Council of Australia in demanding the government release the long-awaited Retirement Income Review ahead of more changes to super. Jones, who was speaking at an online event for ASFA, criticised the government's latest raft of superannuation reforms and the early release of super (ERS) program. "The Superannuation Minister [Jane Hume]- who flips and flops between ambivalent and conflicted in her own portfolio - argues that there is no cost...
For the first time since the 1990s, nearly 15,000 retired South Australian public servants will see their indexed pensions frozen until consumer prices bounce back – but the state Treasurer has intervened to ensure they don’t lose money. After this year’s record fall in the consumer price index, State Treasurer Rob Lucas has used his legislative discretion to maintain pension payments at their current level to more than 14,300 people in the pre-1986 scheme administered by Super SA....
About half of all UK defined benefit pension funds are now targeting a buy-out as their long-term objective, new research shows. A survey of 100 DB pension scheme trustees by consultancy Hymans Robertson revealed the number of pension funds aiming for self-sufficiency has dropped markedly in the past four years, down to just 37% from 81%. Now, the number of funds aiming for a buy-out has increased to 49% - up from just 15% four years ago. The remaining...
Saving for retirement is hard enough for most Americans, many of whom have far too little money set aside. Unfortunately, the coronavirus pandemic has thrown another wrench into the works: Millions of parents across the country have been left without good child care options. In fact, according to a July study from E*Trade Financial, 46% of parents indicated child care was a barrier to retirement, up six percentage points compared with the first quarter, before the pandemic set in....
The Council adopted conclusions on strengthening minimum income protection in the EU with the aim to combat poverty and social exclusion during and after the COVID-19 pandemic. Read also Portuguese schemes now required to report ESG investment The Council recognises that minimum income schemes contribute to the social protection of the most disadvantaged groups in society, including people hardest-hit by the COVID-19 crisis. They also have a stabilising effect for the economy as a whole. The Council also acknowledges that...
