July 2020

14Jul

UK. Proposed Legislation for Losses from COVID-19 and Limitations on the Retroactive Impairment of Contracts

The COVID-19 pandemic has caused most businesses to temporarily close and, as a result, sustain significant losses. Various states are contemplating the passage of legislation to require carriers to cover claims arising from COVID-19, but case law regarding the constitutionality of such legislation is conflicting. Depending on the facts surrounding retroactive legislation, states may be able to pass an enforceable law leading to coverage. Pennsylvania’s Proposed Legislation for Business Interruption Losses Pennsylvania is one of many states that has...

July 14, 2020
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13Jul

Older South Africans are taking their wealth and pensions offshore

In the current precarious economic climate, South African residents over age 55, who invested in retirement annuities (RAs), preservation funds or pensions, are increasingly transferring their investments to living annuities with offshore equity exposure. Read also Greece’s supreme court rules for reimbursement of pension cuts Claudia Mendes, international financial planner at Sable International, considers the argument for going offshore. South African residents find themselves investing in a country that has a concentration of resource stocks and a volatile currency. With...

July 13, 2020
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13Jul

Australia. Low income earners get further support

Millions of Australians on pensions and low incomes are about to get cash hits from the government, which it hopes will give another boost to the coronavirus-hit economy. The second round of $750 payments for pensioners, veterans and carers will start going into people's bank accounts from Monday. It goes to about five million Australians at a cost of $3.8 billion. Treasurer Josh Frydenberg anticipates many will spend the money on everyday expenses like groceries, rent and bills. "This...

July 13, 2020
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13Jul

US. Public pension funds in an era of low rates and COVID-19

What is the most prudent strategy for state and local governments confronting low returns on pension investments, aging workforces, and pressure to build portfolios large enough to cover promised future benefits at the same time that these governments face other pressing demands? Presentations at the 2020 Municipal Finance Conference provide contrasting answers to this question. Louise Sheiner and Finn Schuele of the Hutchins Center at Brookings with co-authors Byron Lutz of the Federal Reserve Board and...

July 13, 2020
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10Jul

The big reforms that could boost retiree incomes by 30 per cent

Retiree incomes could increase by as much as 30 per cent if superannuation funds were forced to offer ‘longevity-based’ products, the Actuaries Institute has claimed. In a new paper released on Thursday, the peak professional body said Australian retirement incomes would be significantly boosted through the compulsory use of ‘longevity risk’ managing products. Read also Does early access to pension funds improve health? These products, such as lifetime annuities, are intended to provide a stable, regular income to retirees for...

July 10, 2020
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10Jul

Japan’s Deadly Combination: Climate Change and an Aging Society

The forecast was dire: close to nine inches of rain in a single day. Officials in Kuma, a village on the banks of a fast-moving river in southwestern Japan, urged everyone to evacuate. Yet inside the Senjuen nursing home, the 70 residents were left in place. The decision proved disastrous. The rain that fell early Saturday was even worse than expected, a blinding downpour that soon inundated the village’s streets. Caretakers in the nursing home, which lacked an elevator,...

July 10, 2020
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10Jul

Constitutional Court rules benefits for pensioners are inappropriate in Latvia

The court admitted that a specific point of the 22 December 2009 Cabinet of Ministers requirements, which details the amount of the state social security benefit for unemployed persons and seniors as inconsistent with the Constitution. The Constitutional Court also concluded this requirement as null and void as of 1 January 2021. The ruling is final and is not subject to appeal. The challenged norm states the state social security benefit amount for persons disabled from childhood is EUR...

July 10, 2020
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10Jul

EIOPA announces the new composition of its two stakeholder groups

The Board of Supervisors of the European Insurance and Occupational Pensions Authority (EIOPA) has appointed new members to the Insurance and Reinsurance Stakeholder Group (IRSG) and Occupational Pensions Stakeholder Group (OPSG). The two groups consist of a broad range of stakeholders, representing the industry, consumers, beneficiaries, academics, small and medium-sized companies, employees as well as professional associations. EIOPA received considered 158 applications from 26 European countries, submitted following an open call. In its selection, EIOPA aimed to achieve geographical...

July 10, 2020
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09Jul

Trump’s Plan to Block Pensions From ESG Won’t Help Fossil Fuels

The U.S. Department of Labor is concerned that America’s pension fund managers don’t know what they’re doing. Read also US. Public Pensions and the COVID-19 Fiscal Dilemma That’s the rationale, at least, for the department’s newly proposed rule restricting the use of environmental, social, and governance considerations in investment decision-making. The language reaffirms the standard interpretation of fiduciary guidelines that only financial risks and returns can be considered in the management of U.S. employer-provided pension funds; “non-pecuniary goals,” for...

July 9, 2020
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09Jul

Banks and pension funds among investors bankrolling meat and dairy

Banks, investors and pension funds have poured billions into the world’s largest meat and dairy companies over the past five years, a new report has found. It compares the environmental impact of “‘big ag” to that of big oil. The report, published on Thursday, said private financial backing for the world’s 35 largest meat and dairy companies totalled an estimated $478bn (£380bn) between January 2015 and 30 April this year. The financing came in the form of loans, bonds...

July 9, 2020
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