August 2019

01Aug

Greece. Government to introduce ceiling to stop paying huge pensions

The Labor Ministry is about to introduce a ceiling on the monthly amount of pensions, to apply retroactively, in order to plug the loophole in the Katrougalos law that allowed for some very large pensions, which in certain cases exceeded 20,000 euros a month. Ministry sources say that the retroactive application means that any pensioners who received very high benefits will now have to return the amount over the ceiling to be set. They add that they will not...

August 1, 2019
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01Aug

Kenya. 3 Fintech firms admitted into CMA regulatory sandbox

Capital Markets Authority (CMA) has admitted three fintech firms into its regulatory sandbox, allowing them to live test innovative solutions with the capacity to deepen and enhance the efficiency of capital markets. The firms include Innova Limited, Pezesha Africa Limited and a third firm which remains anonymous. Innova will test its cloud-based data analytics platform designed for use by Investors, Fund Managers, Custodian Banks, Actuaries, Pension Administrators and Regulators. Pezesha will test an internet-based crowd-funding platform through which investors...

August 1, 2019
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01Aug

US. Tennessee pension fund investments in marijuana company generates smoke

After discovering retirement plan invested in medical cannabis firm, pot-wary Tennessee to sell stock In a Republican-led state where many top officials, including Gov. Bill Lee, oppose legalizing even medical marijuana, Tennessee's massive $52 billion retirement plan holds a $720,000 investment in the nation's blazing-hot pot industry. The Tennessee Consolidated Retirement System's passively invested small-company stock fund, based on Standard and Poor's S&P Smallcap 600 index, owns 7,009 shares in San Diego-based Innovative Industrial Properties Inc. A real estate...

August 1, 2019
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01Aug

MetLife, Prudential Report Big Profit Gains

The nation’s two biggest life insurers posted sharply higher net income for the second quarter. MetLife Inc. nearly doubled its second-quarter profit, helped by improved investment results and derivative gains on a financial hedging program. At rival Prudential Financial Inc., net income rose to $708 million from $197 million a year ago. The year-earlier results were depressed by a net charge of $1.23 billion, primarily for bolstering Prudential’s reserves for long-term-care insurance policies in a product line it discontinued......

August 1, 2019
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July 2019

31Jul

China to further raise pension benefits for retired soldiers

China will further increase pension and living subsidies for disabled veterans, Red Army veterans and families of martyrs starting Aug. 1, China's Army Day. Pension allowances for disabled soldiers, police officers and militia members, as well as families of martyrs and deceased soldiers, will be increased by 10 percent from last year, according to a statement jointly issued by the Ministry of Veterans Affairs and the Ministry of Finance. After the adjustment, yearly pension allowances for veterans disabled in...

July 31, 2019
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31Jul

US. Maybe Insurers Could Start Multiple-Employer Retirement Plans: DOL

The Employee Benefits Security Administration (EBSA) has given life insurers, and other financial services companies, an early Christmas present: an expression of interest in the idea of letting financial institutions start multiple-employer retirement plans. EBSA has just helped its parent, the U.S. Department of Labor (DOL), complete work on a set of final regulations that encourage small employers to offer association retirement plans — by treating small employers that join a multiple-employer plan (MEP) as one big employer, for...

July 31, 2019
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31Jul

The Crisis at South Africa’s $150 Billion State-Owned Fund Manager

Africa’s largest fund manager used to be a success story. Owned by the South African state, the Public Investment Corp. runs money for public institutions including the government-worker pension fund covering more than 1 million people. It increased its assets under management sixfold in 15 years, to about $150 billion. It's a major player in the Johannesburg stock market, and has wielded its power to curb executive pay at companies, make or break takeovers, and drive the government agenda...

July 31, 2019
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31Jul

UK. Contingent charging ban could cost advisers £445m

The financial regulator estimates the advice market will see its revenue drop by as much as £445m a year as a result of the ban on contingent charging. According to the regulator's own calculations, the ban will cost advisers between £360m – £445m a year in lost revenue as a result of a drop in demand for and a lower cost of pension transfer advice. This is alongside an estimated cost of between £399m - £598m in...

July 31, 2019
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30Jul

The world’s largest pension may be hedging euro and USD risk

Japan's $1.5 trillion public pension fund has begun to put on hedges to protect against USD and EUR declines, according to a Nikkei report published yesterday.The GPIF "has begun a transaction to avoid (hedge) losses associated with fluctuations in foreign exchange rates through fund management with foreign bonds. The target is US dollar and euro denominated bonds, and the balance at the end of March is approximately 1,300 billion yen," the report says. A hedge of that size will be swallowed...

July 30, 2019
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30Jul

US. DOL Releases Final Rule on ‘Association Retirement Plans’

The Department of Labor (DOL) has issued a final rule to help more employers offer retirement savings benefits through association retirement plans (ARPs). The rule, which will go into effect on September 30, will permit employers to connect with associations of employers in a city, county, state, or a multi-state metropolitan area, or in a particular industry nationwide to provide retirement plans for their employees. The DOL says the rule will allow small and midsized plan sponsors to offer competitive...

July 30, 2019
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