December 2019

The conflict of interest around pension transfers

By James Jones-Tinsley Things have certainly changed. Access to defined benefit schemes has dropped significantly, while the proliferation and membership of defined contribution schemes has soared. In April 2015, the pension freedoms liberated funds by offering individuals easier access to their savings from age 55 onwards. Rather than having to purchase an annuity, an individual could simply withdraw their entire pension fund in one go. But given that the pension freedoms only applied to define contribution schemes, this unfettered access...

US. Connecticut to stop investing pension money in gun manufacturers

Connecticut's treasurer, who oversees $37 billion in public pension funds, announced plans Tuesday to divest $30 million worth of shares in civilian firearm manufacturers while banning similar future investments and creating incentives for banks and financial institutions to enact gun-related policies when lending to companies. If approved by an advisory board, it will mark the first time Connecticut has taken the step of divesting shares in firearm-related companies since the 2012 Sandy Hook Elementary School shooting in Newtown that...

Ghana. SSNIT commits to scheme’s sustainability

Management of the Social Security and National Insurance Trust (SSNIT) has indicated its intention to continue engaging the National Pensions Regulatory Authority (NPRA) and other key stakeholders concerning recent agitations on the computation of past credit of contributors who are due for retirement effective January 1, 2020. Read also Nigeria: Court Orders Govt to Recover Pensions Paid to Ex-Governors Who Serve As Ministers, Senators Already, the NPRA has mandated the Trust to further compile a report on computation of past...

Canadian Pensions Acquire Stake in Mexican Construction Firm

The Canada Pension Plan Investment Board (CPPIB) and Ontario Teachers’ Pension Plan have agreed to acquire stakes in Mexican construction engineering company Impulsora del Desarrollo y el Empleo en América Latina (IDEAL). Under the terms of the deal, CPPIB and Ontario Teachers’ will launch a tender offer on the Mexican stock exchange for shares in IDEAL at 43.96 pesos ($2.25) per share. CPPIB will come away with a 23.7% stake in IDEAL, while Ontario Teachers will own 16.3% of...

EIOPA publicly consults on its approaches for regulating key aspects of the Pan-European Personal Pension Product (PEPP)

Today, the European Insurance and Occupational Pensions Authority (EIOPA) launched the public consultation of its approach to the regulatory and implementing standards, and technical advice to the European Commission on delegated acts, as mandated by the Pan-European Personal Pension Product (PEPP) Regulation. The Consultation Paper sets out EIOPA's current stances to approach the regulation of key aspects of the PEPP, underpinning the idea of establishing a simple, safe and cost-efficient savings product. In developing its proposals, EIOPA sought input...

Major pension plans join investor group pumping $229M into fintech fund

The Caisse de dépôt et placement du Québec and the Public Sector Pension Investment Board (PSP) are among a group of at least 14 investors pumping $229 million into an international fintech fund run by Portag3 Ventures, an early-stage investor established by companies under the umbrella of the Desmarais family’s Power Corp. The disclosed institutional and strategic investors committing the new funds also include insurance companies and financial institutions from Canada, France, Israel and the United States. Among them...

European Union’s Finance Ministers are confidentially opposing the ECB’s negative rates monetary policy

European Union's Finance Minister opposed ECB's negative rates policy in a confidential meeting. Negative rates have started to hurt the savings and pensions systems. Monetary policy’s banking transmission channels may also be threatened. Fabio Panetta says the benefits of low-rates policy outweigh the risks for now. Forex market has not responded lucratively to the recent proceedings at the ECB. President Trump has reiterated his support for the European Central Bank’s (ECB) negative rates policy on multiple occasions. Following the...

UK. The Gap Between Male and Female Retirement Savings Is Astounding

Saving for retirement is crucial. Without independent savings, you risk struggling financially during your golden years. And when you think about the expenses you'll face when you're older, it's easy to see why. Read also UK. Digital Bank Revolut Partners With Smart Pension to Offer Business Pensions Functionalities Even if you manage to pay off your mortgage in time for retirement, you'll still need to cover other homeownership costs like property taxes, insurance, and upkeep. And while you won't have...

French cabinet in Sunday crisis meeting ahead of 5 December strike

The French cabinet has met in a Sunday crisis session convened by Prime Minister Edouard Philippe to discuss tactics in the face of Thursday's nationwide strikes against proposals to reform retirement and pension legislation. With a series of strikes planned in key sectors like transport and teaching, the government has already held a number of meetings to thrash out a common strategy to defend reforms – described as "essential" by President Emmanuel Macron. On Friday, several ministers met to...

UK. Life expectancy advice risks turning savers into spenders

Online calculators that tell people their life expectancy may be having the perverse effect of discouraging them from choosing a guaranteed income in retirement, according to academic research. The study of 2,000 people found that they were less likely to buy an annuity — a guaranteed income for life — after using official life expectancy calculators such as that on the government’s Pension Wise service. People appeared to be making decisions that conventional economics could not explain when confronted...