August 2020

21Aug

Volkswagen Mexico agrees 5.5% hike in worker pay and benefits

Volkswagen’s Mexico unit has agreed an increase in worker pay and benefits of 5.46 percent, the local union for the German automaker said on Tuesday, after the company froze worker salaries in Germany this year due to the coronavirus crisis. Read also US. 27% of Savers Have Decreased or Stopped Retirement Plan Contributions Due to the Coronavirus Manuel Aburto, spokesman for the Independent Union of Automotive Industry Workers, said the deal for a new 2020-21 collective contract comprised a salary...

August 21, 2020
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20Aug

Pension Giant Says Radical Post-Covid Changes to Hit Investments

Canada’s largest pension fund says some of the “radical changes” in consumer behaviors enforced during the pandemic lockdown are here to stay. The Canada Pension Plan Investment Board’s thought leadership lab sees permanent changes to consumer behavior as a result of the global pandemic. The era after Covid-19 will be defined by wider adoption of e-commerce among older consumers, as well as by long-term impacts on health-care and privacy policy, all of which will impact investment portfolios, it says....

August 20, 2020
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20Aug

US. 27% of Savers Have Decreased or Stopped Retirement Plan Contributions Due to the Coronavirus

The coronavirus crisis has had a profound economic impact, and while some people have managed to coast through the past five months financially unscathed, others are truly struggling to make ends meet. It's not surprising, then, to learn that 27% of Americans have either stopped funding their retirement savings or have decreased their IRA or 401(k) contributions due to the pandemic, according to a new FinanceBuzz survey. If you've lost your job or taken a hit to your income in...

August 20, 2020
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20Aug

A step closer to retirement reform in South Africa

By Jerry Botha, managing partner, and Jean Du Toit, head of tax technical at Tax Consulting South Africa As announced in the Budget Speech, any South African leaving in future will be subject to a much stricter process from 1 March 2021 onwards. But there was also a surprise 3-year lockup announcement for anyone with a South African pension fund, seeking to leave South Africa. This appears a sign of things to come for private pensions in South Africa....

August 20, 2020
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20Aug

Australia. PM flags pension could rise even though cost of living has fallen

Pensioners might be experiencing a fall in their cost of living but Prime Minister Scott Morrison has signalled they won't miss out on an increase in their pensions. Pensioners saw a 1.4 per cent fall in the cost of living in the June quarter and a 0.6 per cent fall in the cost of living in the six months to June this year. However, a parliamentary committee heard this week that the indexation formula, which uses the cost...

August 20, 2020
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19Aug

US. DOL Issues New Rules On Retirement Plan Income Disclosures

Industry trade associations applauded a new rule today from the Trump administration requiring retirement plans to provide an illustration of the amount of monthly income that might be generated by an individual’s retirement savings. The rule was mandated in the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. The SECURE Act required a participant’s accrued benefits to be included on his or her pension benefit statement as a current account balance, and as an estimated lifetime...

August 19, 2020
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19Aug

South Africa. Enoch Godongwana: Prescribed assets won’t be used to bailout struggling SOEs

RYK VAN NIEKERK: The contentious issue of prescribed assets was a prominent topic of discussion during an ANC webinar on Monday night regarding the party’s economic policy. During the webinar Enoch Godongwana, the head of the ANC’S economic transformation subcommittee, strongly denied that proposed changes to Regulation 28 are aimed to force pension funds to bail out struggling state-owned enterprises, or to fund a state-owned bank. Enoch Godongwana is on the line. Enoch, thank you so much for joining...

August 19, 2020
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19Aug

Kenya. Urgent: Protect pension funds

How safe is your pension? I think Kenyans who contribute money to individual pension schemes are badly exposed. Last week, a whistle-blower, who is an employee of a leading pensions administrator, visited my office, where he proceeded to dump a heap of documents including multi-year audited accounts, balances of member contributions and statements of individual contributors. The whistle-blower’s intention was to show me how the directors of the company had devised clever schemes to steal hard-earned savings of unwitting...

August 19, 2020
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19Aug

ESG head exits €92bn Danish pension fund giant

PFA Asset Management’s head of ESG, Andreas Stang, has left the firm to join insurance and pension company Topdanmark. As part of his new role, Stang will take charge of responsible investments and ESG integration. Topdanmark said his appointment is part of its increasing focus on responsibility and sustainability. He has been head of ESG at PFA Asset Management for over four years. The group oversees DKK 688bn, which equates to around €92bn. Prior to that he was chairman...

August 19, 2020
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19Aug

MetLife Board Dodges Lawsuit Over $500 Million Annuity Error

MetLife Inc.'s board doesn’t have to face oversight claims over the insurer’s practice of downplaying its liabilities by wrongly counting pensioners as dead if they didn’t respond to its letters, instead of consulting official records, a Delaware Chancery Court judge ruled. The shareholder derivative lawsuit “supports an inference of failure of prudence on the part of the defendants; and a lack of imagination perhaps,” Vice Chancellor Sam Glasscock III wrote Monday. But “the plaintiffs require too many attenuated inferences...

August 19, 2020
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