September 2020

18Sep

Revised Mercer U.S. Pension Buyout Index Methodology Shows That Costs of Annuity Buyouts Could Be Less Than Accounting Liability

Mercer, a global leader in redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being, and a business of Marsh & McLennan (NYSE: MMC), announces that the costs associated with annuity buyouts may be increasingly attractive, as Mercer data indicates that a hypothetical retiree buy-out transaction may cost 97.7% of the plan’s accounting obligations1. The discovery comes following enhancements introduced by Mercer to its U.S. Pension Buyout Index (the “Index”). Originally launched in...

September 18, 2020
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18Sep

Ghana. Government to develop micro-pensions policy for informal sector

Government is considering the development of a micro-pensions policy to guide efforts at improving informal sector coverage to unlock its huge potential. Mr Ignatius Baffour Awuah, Minister of Employment and Labour Relations, disclosing this, said since 2017, government had been creating awareness on the Third-Tier pension scheme for occupational groups, which had whipped up the interest of informal sector workers not covered by any pension scheme. Addressing a “press briefing” in Accra , he said effective January next year,...

September 18, 2020
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18Sep

Canada pension plan’s fossil-fuel investments raise climate risks, study says

Canada Pension Plan Investment Board (CPPIB), which manages the pensions of 20 million Canadians, is investing billions of dollars in fossil fuel companies, exposing it to significant climate-related risks, research by two universities said on Thursday. The study was done by Canada Climate Law Initiative (CCLI), a project of the University of British Columbia and Toronto’s York University. The research acknowledged the progress made by Canada’s biggest pension fund, including the doubling of its renewable energy holdings, but found...

September 18, 2020
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17Sep

Manulife launches market’s first MPF retirement income fund, aiming to provide regular and stable income in retirement

For Manulife Global Select (MPF) Scheme You should consider your own risk tolerance level and financial circumstances before making any investment choices. When, in your selection of constituent funds or the Default Investment Strategy ("DIS"), you are in doubt as to whether a certain constituent fund or the DIS is suitable for you (including whether it is consistent with your investment objectives), you should seek independent financial and/or professional advice and make investment choices most suitable for you taking...

September 17, 2020
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17Sep

UK. Small pension schemes face winding up or consolidation if they can’t demonstrate value

Getting a good return on the money you put aside in your pension is crucial if you want to enjoy a comfortable retirement. And new rules from the Government should make that just a little bit easier. The Department for Work & Pensions (DWP) has published new draft rules, which aim to force defined contribution pension schemes to prove they offer value to savers or else face being wound up. Trustees of pension schemes will be expected to...

September 17, 2020
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17Sep

UK. Has your state pension been underpaid? Pressure grows on government to tackle issue

State pension: Campaigners have launched the next stage in their campaign, as they call on the Department for Work and Pensions (DWP) to use their records to track down all the women who are missing out and receiving underpaid state pension payments. Pressure on the Government when it comes to the issue of women who have been underpaid via their state pension payments has risen, following the tabling of a new petition on Parliament's website. The petition has ben...

September 17, 2020
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17Sep

US. DOL Issues Guidance for Including Lifetime Income Disclosures in Defined Contribution Benefit Plan Statements

As required by the SECURE Act of 2019, the U.S. Department of Labor (DOL) published an interim final rule requiring plan administrators of individual account plans (including 401(k) plans, 403(b) plans and other defined contribution plans) to express a participant’s current account balance as both a single life annuity and a qualified joint and survivor annuity income stream. These new disclosures are intended to help participants better understand how the amount of money they saved so far converts into...

September 17, 2020
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15Sep

MetLife to Face Appeal of Suit Over $500 Million Annuity Error

A group of MetLife Inc. investors will ask Delaware’s top court to revive oversight claims over the insurer’s practice of downplaying its liabilities by counting pensioners as dead if they didn’t respond to its letters, instead of consulting official records. The lawsuit, dismissed by a Chancery Court judge in August, concerned MetLife’s “pension risk transfer” operations, a long-running business line that involves managing pension obligations for employers. The insurer for decades based its annuity payments on letters sent to...

September 15, 2020
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15Sep

UK. Government encourages pension schemes to invest in green tech and infrastructure

Measures aimed at encouraging pension schemes to invest in a more diverse range of long term assets, including green technology and infrastructure, have been outlined by the government. It has launched a consultation and is seeking views on additional steps to encourage the consolidation of smaller pension schemes into larger schemes. The government believes a key wider benefit of an increase in consolidation could be the increased share of assets saved in large, defined contribution (DC) schemes potentially able to...

September 15, 2020
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15Sep

Australia. Aged care workforce stressed and under pressure

Most Australian aged care managers reported an increased workload and stress in a recent survey, as industry experts warned immediate action is needed to stop staff walking away. A survey of more than 250 residential aged care providers by risk and compliance advisors CompliSpace found 78 per cent of managers felt under more stress and 92 percent were doing more paperwork since the introduction of the Aged Care Quality Standards. CompliSpace chief executive officer David Griffiths said the sector...

September 15, 2020
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