June 2018

04Jun

Australia. Do public servants receive too much superannuation?

Hopefully, the Prime Minister's review of the Australian Public Service will address much more than its terms of reference's emphasis on technology and "innovation". One important issue is the way remuneration is set so the APS can attract and retain the skills it needs. I also hope the review is not too influenced by private sector experience but draws carefully on public sector experience, particularly where the public sector has a superior record (for example, in its ethical culture). I have...

June 4, 2018
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04Jun

The Spanish Pension System And Its Problems

The Spanish pension system is one more which exists in the OECD and, probably, not one of the worst. Neither are its problems very original. Just like in other countries in the club, the financial hardships which were the result of the Big Recession led to cuts. These were implemented in 2011 by the PSOE, with the PP causing a big scandal, then in 2013 by the PP, with the roles reversed. The commitment to not politicising this issue (the...

June 4, 2018
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01Jun

US. Gig Workers’ Retirement Prospects Look Dim

What will retirement look like for gig workers? It isn’t a pretty picture, according to preliminary research presented by Jack VanDerhei, research director of the Employee Benefit Research Institute, at a policy forum earlier this month. In the worst-case scenario, the potential impact on national retirement income adequacy is staggering: The nation’s overall net retirement savings surplus at retirement age would decrease by $2.2 trillion (in 2018 dollars). And the retirement savings shortfall for those who run out of...

June 1, 2018
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01Jun

Jamaican Minister In Favor of Private Pensions Industry

The Minister without Portfolio in Finance and Public Services in Jamaica, Fayval Williams, expressed herself in favor of an alleged potential for the private pensions industry. In her opinion, this variant could stimulate sustainable economic growth; however, in several countries such as Colombia, Spain or South Africa has generated scandals, because non-state funds have gone bankrupt and taxpayers lost all their savings. According to the official, pensions represent an asset of approximately 521 billion dollars (until December 2017), which is equivalent...

June 1, 2018
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01Jun

Retirement Interventions

The third anniversary of pension freedoms has triggered a number of reports and suggestions on how well it is working and what more needs to be done. The latest from the ABI concludes that while consumers are on the whole making reasonable decisions there are warning signs which should not be ignored. As a result it proposes 5 “interventions” which are targeted at changing consumer behaviour and which it believes will improve consumer outcomes. Read More: Actuarial Post

June 1, 2018
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May 2018

31May

UK. Pension contributions and rewarding shareholders: getting the balance right

Over recent years, defined benefit pension schemes have become increasingly prominent creditors and stakeholders in the UK corporate landscape. Between 2007 and 2017, the UK’s combined DB deficit rose from circa £450bn to £700bn (on a buyout basis according to The Pension Protection Fund’s 2017 Purple Book). Despite this dramatic increase, inadequate accounting disclosure requirements have enabled corporate boardrooms to reward yield-hungry investors with ever-greater handouts over the past decade. Read More: Financial Director

May 31, 2018
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31May

Australia. More than 90,000 pensioners to earn more

The federal government is expanding the pension work bonus from $250 to $300-per-fortnight, allowing people to earn up to $7800 per year without impacting their payments. The scheme will also be expanded to allow self-employed retirees to earn up to $300-per-fortnight without copping a whack to their pensions. Senior bureaucrats expect 88,750 pensioners and 1000 allowance recipients will receive a boost to their payments because of the more generous work tests. Read More: Daily Telegraph

May 31, 2018
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30May

BR Analysis. Money to spend only on wages and pensions? Romania’s social spending enters danger zone above 60 pct of total budget, limiting room for response in case of economic downturn

Official data released in March show Romania’s GDP, the index widely used to measure the size of national economies, recorded growth of 6.9 percent in 2017 in real terms, the highest since 2008, to reach RON 858.3 billion (EUR 187.9 billion). Experts point out that much of the economic growth in Romania is the product of a consumer bonanza, stimulated by years of wage-led growth government policy. But this model has generated high public spending on wages and pensions and larger...

May 30, 2018
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30May

Micro-pension Scheme will Deepen Asset Accumulation in Nigeria–Stanbic IBTC Pension Managers

Managing Director of Stanbic IBTC Pension Managers Limited, Mr Eric Fajemisin, has backed measures taken by the National Pension Commission (PENCOM) to sustain growth of the Nigerian pension industry. According to him, micro pension scheme, multi-fund investment structure and Pension account transfer window, to mention but a few, are among initiatives capable of putting the sector in stronger footing going forward. Stanbic IBTC Pension Managers Limited is the biggest pension fund administrator (PFA) in the country. Read More: Business Post

May 30, 2018
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