February 2020

13Feb

World Bank economic report urges Uganda to step up social protection

The World Bank has today released the 14th Uganda Economic Update which has focused on social protection systems in Uganda and proposes a more effective approach to reduce vulnerability and to support more inclusive growth. The report indicates that the coverage and design of social protection programs are currently insufficient to meaningfully address the range and scope of vulnerabilities to shocks in Uganda. It indicates that the existing direct income support programs in Uganda have low coverage, with...

February 13, 2020
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13Feb

South Africa. Trade union oppose plans to finance Eskom with pension fund

South African trade union Solidarity announced that it has started a legal process to stop plans to financing Eskom from the Government Employees Pension Fund (GEPF). The union says it has written a letter to the GEPF as well as the Public Investment Corporation (PIC), and it is demanding that the Trustees and the Board of these institutions should not accept the controversial plan to finance Eskom from the Fund. In the letter, Solidarity called the Trustees’ attention to...

February 13, 2020
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13Feb

Gig economy sucking super savings dry

By  Ally Selby  It's causing everyday Aussies to retire with much less, forcing the country's taxpayers to carry the added costs, according to a Treasury submission by the Actuaries Institute. I n a paper submitted to the Treasury's Retirement Income Review Panel, the Institute warned of the new risks to Australia's superannuation system. "The gig economy... creates a new set of problems with respect to the superannuation guarantee (SG) system," it said. "It provides people with different types of jobs...

February 13, 2020
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13Feb

A low birth rate and a rapidly ageing population: Europe’s demographic crisis explained

Europe's population is getting older. Between now and 2030, most EU countries will see the number of workers over 50 increase to 55% of their overall labour force. The European Commission forecasts that spending on healthcare for older people and pensions (currently 25% of GDP in the EU), will rise 2.3 percentage points by 2040. The demographic challenges vary across the EU. Portugal, Greece, Italy and Spain are among the top-10 countries in the world with the lowest fertility...

February 13, 2020
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12Feb

ABP: accelerating sustainability with investments

Dutch pension fund Stichting Pensioenfonds ABP has expressed a desire to break away from ‘dirty’ investments and focus on sustainability instead. In a press release on the company’s website, ABP set out its goal to reduce its investment portfolio in high CO2 emitting industries (coal mines and tar sands) by 40% by 2025. Concurrently, the company intends to invest €15bn in sustainable energy instead. With an overall strategy aimed at gradually weaning off companies that use fossil fuels to...

February 12, 2020
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12Feb

UK. State pension warning: Retirement age set to increase even further in just two years

The state pension age for men and women is currently 65 but will increase to 66 by October 2020. The pension age will then rise to 67 between 2026 and 2028. However, it is “likely” the age will increase further as the Government will review the system from 2023. Speaking to Express.co.uk, Age UK policy expert, Sally West said: “The legislation has been passed to increase the state pension from 66 later this year. “There’s also a law that’s...

February 12, 2020
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12Feb

Need for pensions reform in Zimmbabwe

By Abisha Ndoro The occupational pension fund industry in Zimbabwe is a national crisis. A collective introspection by industry practitioners, boards of trustees, regulators, policymakers and other stakeholders is now necessary in addressing the myriad of underlying problems and reposition pension funds on a platform of long-term sustainability for future generations of retirees. The purpose of this, and subsequent articles, is to begin a process of stimulating debate as we examine the problems besetting the pensions system and crystallise...

February 12, 2020
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11Feb

UK. Government mulls tax raid on top earners’ pensions

According to the Financial Times, chancellor Sajid Javid is weighing up cutting tax relief on pension contributions for higher earners as a way of raising revenue for the state. Under the current system, individuals receive tax relief on their personal contributions at the same rate as their marginal income tax rate. However, the FT reports Javid may cut pension tax relief for higher earners from 40% to 20%, raising more than £10bn extra a year for the state. Inheritance...

February 11, 2020
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11Feb

Zimbabwe pension funds to invest offshore

During an inaugural insurance and pensions industry breakfast meeting yesterday, Finance minister Mthuli Ncube said Parliament would receive the Pensions and Provident Fund Bill, the Insurance Act and the amendments of the Insurance Commission Act soon. "In the first half of the year, all three Bills will come before Parliament . . . It is going to be contained in one of the Bills (Pensions and Provident) that eventually what we are saying is that for now we...

February 11, 2020
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11Feb

US. The Impact of the SECURE Act on Tax Qualified Retirement Plans

On December 20, President Trump signed into law the “Setting Every Community Up for Retirement Enhancement Act of 2019,”[1] known and referred to colloquially as the “SECURE Act.” The law’s stated purpose, among other things, is to increase the coverage of American workers in employer-sponsored savings arrangements. The new law generally affects retirement plans and programs that include employer-sponsored and Individual Retirement Accounts (IRAs), among others. Many of the SECURE Act’s provisions that impact employer-sponsored plans took effect...

February 11, 2020
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