March 2020

30Mar

Australia pension industry will face scrutiny if withdrawals can’t be paid

Australian pension funds unable to return part of their A$3 trillion savings to unemployed workers and to those in financial distress should expect to have their risk-management frameworks scrutinised by the regulator, a government official said. Responding to concerns that some funds will face liquidity problems to give early access to super - as retirement savings are called - the minister in charge of the sector, Jane Hume, said such problems would be the fault of the funds. “Those...

March 30, 2020
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30Mar

UK. State could be landed with £8bn rail pension deficit

The Telegraph reported that the massive government intervention could shift the pension deficit of franchises from the private sector to the public sector. The Department for Transport (DfT) last week effectively took the rail network into public ownership in response to the coronavirus crash which has slammed demand for travel. Transport secretary Grant Shapps gave companies the option of paying a set fee to run the franchises for six months or to return them to the government. The report...

March 30, 2020
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27Mar

US Public Pensions Lose $1 Trillion from Market Crash

Moody’s says governments are in a worse position to smooth costs than during financial crises. US public pension investment losses are approaching $1 trillion as a result of the stock market crash caused by the COVID-19 pandemic, which will “severely compound” the pension liability difficulties many governments are already dealing with, according to a report from Moody’s Investors Service.  Read also US. Pension Plan Funding Relief Needed ASAP Moody’s said US public pension systems are on pace to see investment losses of...

March 27, 2020
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27Mar

EIOPA statement on actions to mitigate the impact of Coronavirus on the EU insurance sector

The European Insurance and Occupational Pensions Authority (EIOPA) issued on 17 March 2020 a statement addressed to the EU insurance sector acknowledging the significant consequences for financial services that the Coronavirus/COVID 19 situation may cause and informing about the actions that should be taken by insurers and that will be taken by EIOPA to help insurers to curb the impact of CoronaVirus/COVID-19 on the insurance business and to guarantee the policyholders protection. These actions are focused on two main business aspects: Business...

March 27, 2020
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27Mar

Coronavirus and online solutions: Necessity the mother of invention

Contagion-control measures in Latin America have led to private companies and citizens heightening their dependence on, and increasing their use of, internet-powered solutions and apps. While many firms, including those in the financial services sector, have told staff to work from home, the bulk of people in the region simply cannot do this because of the nature of their work, which is often informal.  State agencies, meanwhile, are also tightening their embrace on technology and instructing regulated entities to do the same. Changes will...

March 27, 2020
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27Mar

Japan to give one-year tax grace period for virus-hit companies

Unprecedented payment delay to include corporate taxes, social insurance premiums. The Japanese government will create a special system to provide a one-year grace period for companies to pay tax and social insurance premiums due to the spread of the coronavirus, the Nikkei has learned. The period will cover the payment of corporate tax, sales tax and social insurance premiums. The government will exempt delinquent tax and will not ask companies to provide collateral. The unprecedented measure comes amid slowing economic activity after the central and...

March 27, 2020
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27Mar

US. Stimulus deal includes temporary relief for retirement plans

Historic legislation would also ban companies’ use of aid to buy back stock. The Senate approved on Wednesday a roughly $2 trillion economic stimulus package for affected companies and workers that also provides some temporary relief for retirement plan sponsors and participants. Final approval is expected Friday in the House of Representatives, where House Speaker Nancy Pelosi said Wednesday she expected to debate the measure on the floor. Defined benefit plan sponsors gained a one-year holiday from making their 2020 contributions, but...

March 27, 2020
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26Mar

Europe. Social protection pays off

If the COVID-19 pandemic has sent the world one message, it is that we are only as safe as the most vulnerable among us. Those who are unable to quarantine themselves or to get treatment endanger their own lives and the lives of others, and if one country cannot contain the virus, others are bound to be infected, or even re-infected. And yet, around the world, social-protection systems are failing miserably at safeguarding the lives and livelihoods of vulnerable...

March 26, 2020
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26Mar

Masataka Miyazono to Head up Japan’s Government Pension Investment Fund

The Japanese government named Masataka Miyazono, as the new President of Japan Government Pension Investment Fund (GPIF). Masataka Miyazono is the former Deputy President of Norinchukin Bank. Masataka Miyazono will replace current president Norihiro Takahashi, whose term is due to expire at the end of March 2020. Masataka Miyazono retired from Norinchukin Bank on June 22, 2018. Read more @swfinstitute

March 26, 2020
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26Mar

UK. PFS pushes for grace period on PI amid ‘evidence of serious impact’

The Personal Finance Society has called for a four-month grace period for advisers whose professional indemnity insurance is due for renewal during the coronavirus lockdown. In a letter sent to the Financial Conduct Authority and HM Treasury this week the professional body asked for regulatory concessions to help advisers at at time when "demand for their help has never been greater, yet pressure on their own resources are stretched". This included a call for advisers to be granted...

March 26, 2020
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