August 2020

28Aug

US. The Future for ESG Investing in Retirement Plans

The department of labor (DOL)’S proposed rule on environmental, social and governance (ESG) investment practices, published in June, intended to add clarity to years of obscure regulatory guidance. Instead, it’s created a layer of complexity among fiduciaries and has fueled more than 1,000 critical comments. The proposed regulation restates that plan sponsors in defined contribution (DC) plans cannot disregard financial approaches in an effort to pursue ESG-related considerations without violating their fiduciary duties under the Employee Retirement Income Security...

August 28, 2020
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27Aug

European pension funds increasingly take ESG into account – Mercer

An increasing percentage of European pension funds are now taking climate-change risk into account when it comes to investment allocations, with awareness of ESG-related risks also on the rise. Read also Greece. Wave of Pension Applications Swamp Overwhelmed Greek System Consultant Mercer's latest European asset allocation insights survey found that 54% of respondents actively consider the impact of climate change-related risks on their investments, up from 14% in a 2019 survey. Read also UK. Taking action on climate risk: improving...

August 27, 2020
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27Aug

UK ‘lifeboat’ scheme for company pensions at risk

A former minister has warned that the government’s “lifeboat” scheme for company pensions is at risk from a huge wave of corporate defaults which in extreme circumstances could result in a 10% cut to pensioner incomes. Read also UK. Why we’re largely a nation of ‘no clues’ on pensions The Pension Protection Fund is the “insurance policy” for millions of people in final salary-style company pension schemes, promising to pay out if the employer becomes insolvent. It is funded by...

August 27, 2020
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27Aug

South Africa. Govt won’t force pensions to be invested in infrastructure projects, says deputy fin minister

- Government does not intend to force pensions to be invested in certain assets, says Deputy Finance Minister David Masondo. - Amendments to regulation 28 of the Pension Funds Act is purely to broaden the scope of investments trustees of funds can consider, he said. - Masondo says trustees have a fiduciary duty to deliver better returns to members of funds. Government has no intention of forcing pension funds to invest in specified projects or assets which...

August 27, 2020
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27Aug

UK. Taking action on climate risk: improving governance and reporting by occupational pension schemes

This consultation seeks views on policy proposals to require trustees of larger occupational pension schemes and authorised schemes to have effective governance, strategy, risk management and accompanying metrics and targets for the assessment and management of climate risks and opportunities. It also invites responses on proposals to disclose these in line with the recommendations of the international industry-led Task Force on Climate-related Financial Disclosures (TCFD). It is proposed that among the activities required would be calculating the ‘carbon footprint’...

August 27, 2020
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26Aug

After Private Pensions, Peru’s Congress Turns to Public Funds for COVID-19 Relief

Peru's Congress approved a law on Tuesday that allows citizens to partially draw down their contributions to the state pension fund, a few months after doing the same with the private system and despite fierce opposition from the government. Read also What The Pandemic Has Revealed About Retirement Plans With 106 votes in favor, three against and 15 abstentions, the fractured, opposition-dominated chamber gave the go-ahead for Social Security Office (ONP) affiliates to withdraw up to $4,300 ($1,200) to mitigate...

August 26, 2020
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26Aug

US. A$1.6 Trillion Pension Fund Gap – Is Infrastructure Investment The Answer?

The U.S. is a superpower in the pension fund world, controlling more than 50% of global assets, and yet a recent Financial Times article identified a $1.6 trillion dollar funding gap as a grave threat to the U.S. economy. Read also US. The Future for ESG Investing in Retirement Plans For the last 15 years, as Canadian and Australian pension funds have returned on average nearly 5% per year, and often much more, their U.S. counterparts have averaged returns of...

August 26, 2020
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26Aug

UK pensioners lose £30m to scammers

Pension savers claim over £30m ($39.4m) has been lost to scams over the past three years, according to the Financial Conduct Authority (FCA) and The Pensions Regulator. Pension pots of all sizes have been victims of scams, with reported losses ranging from under £1,000 to as much as £500,000. A total of £30,857,329 has been reportedly lost to pension scammers since 2017, according to complaints filed with Action Fraud. However, the true number of scams is likely to be...

August 26, 2020
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26Aug

Zamara to manage Malawi public service pension fund

Pension fund administrator Zamara Group has inked a deal to manage the Malawi public service pension fund. Zamara Group, which manages Sh300 billion pension funds for 170,000 Kenyans and operates in six other African countries said it would replicate its Kenyan model in Malawi. Zamara acquired a majority stake in a pension fund administration business in Malawi last year called Axis Pensions, a business which had been in operations for more than eight years. “We see great scope in...

August 26, 2020
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25Aug

What The Pandemic Has Revealed About Retirement Plans

This year has been a real eye-opener for many pre-retirees and retirees. Over the years, most people heard warnings and advice from retirement advisors about various aspects of their plans. The warnings were based on a combination of data and anecdotes and often didn’t hit home or inspire urgency. But the Covid-19 pandemic compressed many events into a short period and affected the entire country. Suddenly, the concerns weren’t theoretical or something to worry about years from now. A...

August 25, 2020
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