April 2020

08Apr

COVID 19: Emerging Investment Risks for Pension Schemes

Daily policy initiatives by governments across the world who are desperate to avoid the worst ravages of an economic recession are fuelling a lot of the volatility in public markets with which investors are now sadly familiar. However, many pension funds have significant private market exposures through alternative investments. Those holdings are not immune to government intervention and pension funds should note the sometimes unexpected effect of policy changes. The Pensions Regulator’s COVID 19 guidance on 27 March advised...

April 8, 2020
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08Apr

Why Switzerland is struggling to guarantee pensions for the next generation

The Swiss pension system is complex, and is based on three so-called pillars: old-age and survivors’ insurance (known as the AVS), occupational pension planning (often referred to as LPP) and private saving for old age encouraged through tax breaks. This set-up enables risk-sharing and, although “unfortunately not perfect”, could be “a model for other States”, says Thomas Gächter, professor of social insurance law at Zurich University. Read also UK. Wakefield man who failed to claim pension gets...

April 8, 2020
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07Apr

Social protection responses to the COVID-19 lockdown in South Africa

Poor and vulnerable South Africans, including domestic, farm, service sector, and self-employed workers as well as children from poor families, face a double shock. COVID-19 is a major health risk that has already claimed tens of thousands of lives worldwide and is starting to claim lives in South Africa. Social distancing and self-isolation are necessary to slow the spread of the virus, and the 21-day lockdown is designed to “flatten the curve”. But the lockdown itself has consequences that...

April 7, 2020
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07Apr

Irish Demand for Social Benefits Soars as Coronavirus Bites

The number of people in Ireland dependent on social welfare income support amidst the coronavirus outbreak has soared to more than 700,000 based on numbers released on Monday by the Department of Employment Affairs and Social Protection. On April 3, 507,000 people were paid the COVID-19 Pandemic Unemployment Support payment, which is a weekly stipend of 350 euros ($377.93) for those who have lost jobs or had hours cut due to coronavirus disruption. That was in addition to 207,000...

April 7, 2020
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07Apr

Freezing A Defined Benefit Plan To Reduce Current Year Contribution Obligation

Defined benefit pension plans, including cash balance plans, require a contribution each year, which is primarily used to fund the benefits which participants accrue (i.e., earn) during the plan year. The annual required contribution may also include an amount needed to make up a shortfall in a prior year in the investment return on plan assets. In most defined benefit pension plans, a participant earns a benefit for a plan year after working 1,000 or more hours during that...

April 7, 2020
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07Apr

EIOPA publishes second report on costs and pasts performance of insurance based investment products and personal pension products

The European Insurance and Occupations Pensions Authority (EIOPA), has today published its second report on cost and past performance of insurance-based investments products (IBIPs) and personal pension products (PPPs) in the European Union. Read also Cost and past performance 2020 report The report is published following a request from the European Commission to the European Supervisory Authorities to periodically report on the costs and past performance of retail investment products. This report provides an analysis of costs for 2018 and...

April 7, 2020
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07Apr

German Digital Corporate Pension & Life Insurance Provider Xpension raises €25 Million Through Series C Investment Round Led By HPE Growth

Xpension, a German digital corporate pension and life insurance brand, announced on Monday it secured €25 million through its Series C funding round, led by HPE Growth with participation from Cinco Capital, led by Lars Hinrichs (Founder of XING and Chairman of Xpension), and Armada Investment. Founded in 2007, Xpension describes itself as an independent technology provider with shared-service solutions for occupational pension management and consultancy. The company currently has more than 120 staff members its Munich, Saarbrucken,...

April 7, 2020
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06Apr

US. Underfunded public plans facing a new round of woes

The coronavirus has increased pressure on underfunded public pension plans that were already facing significant stress before the crisis. Not only have plans' investment portfolios taken double-digit losses as a result of the pandemic, but government plan sponsors will need to increase their contributions at a time when revenues are down and expenditures are up. Read also US. Some companies are cutting 401(k) matches because of the coronavirus "This has put a lot of strain and stress on pension deficits,...

April 6, 2020
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06Apr

UK. Wakefield man who failed to claim pension gets £140k payout

He mistakenly thought he was not allowed to claim a state pension because he had continued to work long after reaching retirement age. He is now set to receive more than a decade's worth of payments in one lump sum. The error only came to light after Wakefield Council made inquiries on the man's behalf. In a report, councillor Michael Graham said: "To help our residents get more money in their pocket, we are using information we hold to...

April 6, 2020
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06Apr

European report suggests blockchain for welfare tracking

Government benefits and assistance might be more important now than ever. But even if you’ve been living under a rock, you know that holding government to account, and ensuring benefits reach their destination with minimal delay is important. A new report published by the European Foundation for the Improvement of Living and Working Conditions (Eurofound) highlights how blockchain technology, like Bitcoin SV (BSV), could make that process more efficient. The April 2 report looks into several emerging technologies, like...

April 6, 2020
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