May 2020

White House Makes Appointments That Could Impact Pension Fund Decision to Invest in China

The White House on Monday named three nominees to sit on a board that oversees federal employee pension funds, a move that could see the reversal of a decision to allow one of the funds to invest in Chinese companies under scrutiny from Washington. If confirmed by the Senate, the three individuals would sit on the Federal Retirement Thrift Investment Board (FRTIB) which administers the Thrift Savings Plan (TSP), a retirement savings fund similar to a 401(k) for federal...

Nigeria. PenCom dissolves interim management committee for First Guarantee Pension, appoints new board

The National Pension Commission (PenCom) has dissolved the interim management committee of First Guarantee Pension Limited. The committee was set up in August 12, 2011 to handle the affairs of the Pension Fund Administrator (PFA), as part of the commission’s intervention pending the resolution of legal disputes. The intervention was also based on findings of routine and especial examinations carried out by the pension regulator. In a public statement that was released on Monday, PenCom announced that...

Should UK millennials be worried about their retirement savings over the coronavirus crisis?

Experts weigh up whether job losses and stock market volatility from the coronavirus crisis has caused lasting damage to the retirement savings of British millennials. Research has shown young workers are among the most vulnerable to job losses or a reduction in working hours as a result of the financial strain of the Covid-19 outbreak. Jamie Smith, financial advisor at advice firm Foster Denovo, highlighted that in these circumstances a person is less likely to continue to save...

Top US pension plans eye private credit.

Some of America’s largest pension funds are looking to pour money into private credit to capitalise on dislocations across the market stemming from the coronavirus pandemic. Both the $227bn California State Teachers Retirement System (Calstrs) and the $215bn New York State Common Retirement Fund have identified private credit as an opportunity for investors that have enough liquidity to lend to struggling companies. Meanwhile, data from FT Specialist publication MandateWire shows that numerous other public funds in the US are also looking...

Jamaica. The COVID-19 response: Beyond the crisis

The Government's COVID-19 Economic Recovery Task Force very much duplicates the existing National Partnership Council that had been established to drive Jamaica's economic development long before the advent of the global pandemic. The recovery process will be long and arduous, but the first order of business for Jamaica is to keep the wheels of industry turning, which is the initial focus, I believe, of the task force. Beyond that, the groundwork for a full and sustained recovery has to...

Trouble with pensions is a lack of innovation

By Steve Watson Recent research found that two thirds of employers think that pensions are far too complicated and providers are not innovating enough to offer new and progressive products. The research, which looked at the challenges employees face when it comes to pensions, found that almost 45% of employers felt that ensuring all employees have adequate funds when they retire was a huge challenge. While auto enrolment has made a huge difference to the numbers of employees saving into...

Before And After: FinTech vs. Healthcare Covid-19 Crisis Series

By Stephanie MacConnell for Forbes This is the first in a series of articles comparing the Covid-19 crisis in Healthcare to the financial crisis in 2008 that led to an industry-shaping boom in FinTech. The world before the 2008 financial crisis looked different. Most interaction with a person’s financial institution happened inside of a physical branch and most services for an individual were provided by one bank and perhaps one wealth manager. When banks crumbled and the 401ks of average Americans...

Australia. How financial planning around super will likely change

Financial planning around superannuation may be forced to change as a result of the impact of COVID-19 and the efforts of superannuation funds to increase their cash holdings, according to actuarial research house, Rice Warner. It said superannuation funds are likely to keep high levels of cash well into the future for fear of a repeat of the Government’s COVID-19 hardship early release regime. In an analysis of the impact of COVID-19 on superannuation funds, Rice Warner has pointed to the...

Peru takes another stab at major pension reform as AFP bill forced through

Peru’s government has submitted a bill for urgent consideration that establishes a special commission tasked with proposing ways to improve the country’s private and public pension systems. The commission will look at areas such as sustainability, pension size, coverage and demographics. President Martín Vizcarra (pictured) has previously called for an overhaul. Read also OECD pension chief says reforms must continue, urges crisis policy caution The body will comprise representatives of congress, the executive, the central bank and financial services...

US. How The Pandemic Is Making The Retirement Crisis Worse — And What To Do About It

The coronavirus crisis has torn the Band-Aid off the financial fragility of many Americans. With an unemployment rate between 15% and 20%, bank accounts draining, and the Dow down 23% in the first quarter, things are dreadful for millions of people. But Americans in their 50s and 60s nearing retirement may be among the most endangered. Many already weren’t on track for retirement, with little or no savings. Now, the COVID-19 downturn threatens to further undermine America’s vulnerable public...