September 2019

03Sep

South Korea. Stalled reform

After 10 months of discussion, a committee on national pension reform last week suggested three options, all of which fall short of ensuring the long-term sustainability of the pension scheme, now under increasing strain. Differences in views between labor and business representatives barred the panel formed in October under the Economic, Social and Labor Council from working out a single proposal. The first option calls for freezing the income replacement rate, which is set to be lowered to 40...

September 3, 2019
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03Sep

Japan pension funds boost alternative assets in yield hunt, Mizuho says

Japanese pension funds are showing a growing appetite for investing in real estate and corporate debt as they seek higher returns in alternative assets amid ultra-low yields, the head of Mizuho Financial Group’s trust banking arm said. But the famously conservative investors probably won’t want a bite of SoftBank Group Corp’s new Vision Fund, Tetsuo Iimori, the chief executive of Mizuho Trust and Banking, told Reuters. Years of ultra-low interest rates have forced the hand of Japan’s mammoth pensions...

September 3, 2019
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03Sep

UK. New £8 million research centre to explore how digital technology will impact future of work

A major new research centre exploring how digital technologies are changing the world of work is to launch at the start of 2020. The Digital Futures at Work Research Centre (Digit Centre) will operate from the business schools of the universities of Sussex and Leeds and aim to provide a compelling empirical base for policy makers beyond current levels of speculation as to the impact of new technologies on jobs and workers. The centre, which includes Eversheds Sutherland, Marks...

September 3, 2019
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02Sep

Government branded immoral over pensions of UK citizens in EU

The government will not give a lifetime guarantee to index-link the pensions of British nationals who have retired in the EU if there is a no-deal Brexit, a decision that has been described as “immoral” by campaigners. The government currently continually increases the payout of the basic state pension by either 2.5%, average wage growth or by the consumer price index, whichever is higher, on a reciprocal basis under EU regulations, a practice known as uprating. The government has...

September 2, 2019
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02Sep

US. Don’t cut Social Security. Expand its benefits.

The premise and conclusion of Robert J. Samuelson’s Aug. 27 op-ed, “The elderly aren’t so poor after all,” were misleading and dangerous. With 10,000 Americans turning 65 every day, we should look for ways to ensure their financial security during retirement, not pull the carpet out from under them. By Mr. Samuelson’s own account, 23 percent of retirees ages 65 to 80 say they don’t have enough money to live comfortably. The evidence supports their concern. According to the...

September 2, 2019
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02Sep

South Africa: MPs to Fight Back Over Proposed Cut to Parliament Benefits – Report

High-earning Members of Parliament are preparing to resist a move over the trimming of some of their benefits, a Sunday report said. According to the Sunday Times, Parliament is set to review its benefits scheme after it will spend an extra R111m in "loss of office" gratuities this year, to pay 159 MPs who didn't return to their seats after the elections. Those who didn't make it to Parliament are entitled to a once-off gratuity of four months' salary...

September 2, 2019
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02Sep

Great Brexit Insurance Migration Shifts $75 Billion From London

London’s outsized role in the global insurance industry is being whittled down by Brexit. As much as 61 billion pounds ($75 billion) of business is shifting to rival financial centers in the European Union as a consequence of Britain’s vote to leave the bloc. And it’s happening regardless of the divorce terms. The EU’s insurance and pensions regulator has ordered every U.K.-based underwriter to transfer policies held by European clients to units on the continent. While the bulk of...

September 2, 2019
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02Sep

Ukraine to help with pension benefits for Israelis with Ukrainian roots

Ukrainian President Volodymyr Zelensky on Sunday said his government will help paying pensions to Israelis born in the Eastern European country. "Ukraine does not refuse pension benefits to Ukrainians who left for permanent residence in Israel and promises to facilitate the preparation of relevant documentation and examination by the Ukrainian parliament," the president's office said in a statement. Read more @ynetnews

September 2, 2019
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August 2019

30Aug

UK universities’ pension funding hole doubles to £6.6bn

Hundreds of thousands of members of the £72bn Universities Superannuation Scheme face the threat of a further rise in their pension contributions after the plan’s managers revealed a funding hole had nearly doubled to £6.6bn. Read also UK universities brace for strike action in pensions dispute About 198,000 active members of the USS, the UK’s largest private sector pension plan, are making monthly payments of 8.8 per cent of their salary towards their pensions, which promise an inflation-proofed retirement income...

August 30, 2019
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30Aug

Singapore. Pension reforms can boost equity market, bridge wealth gap

FUNDAMENTAL reforms to Singapore's pension system can serve to bridge income inequality as well as revive its public equities market. Continued lack of reforms will worsen the wealth gap and the retirement adequacy of its ageing population, as well as ability to sustain itself as a financial and commercial centre. Singapore's equity markets are somewhat dysfunctional relative to international best practices - pension assets are not deployed to support local capital markets but often invested abroad via GIC. Through...

August 30, 2019
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