March 2018

21Mar

UK. The Battle Over Automatic Retirement Plan Enrollment

With the well-publicized retirement crisis looming, one might assume that any solution that leads to increased retirement savings would be welcomed with open arms. —Not so fast. Industry observers often set the amount of their pay that plan participants should strive to contribute in order to ensure a secure retirement at 10 percent. Fewer than 10 percent of employees meet that threshold. According to recent research by Cerulli, employees whose companies automatically enroll them in retirement plans are far more likely...

March 21, 2018
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21Mar

Global fund managers eye trillion dollar pension business in China

Global asset managers are lobbying Beijing to offer tax benefits and other incentives to entice China’s aging population to invest in mutual funds for their retirement, as funds eye a multi-trillion dollar opportunity in commercial pensions. Their hopes for a bigger role in China’s pension market and its reform process received a boost this month when regulators published guidelines for the introduction of Western-style pension target funds. Although such fund-of-fund (FoF) pension products are popular in mature markets like the United...

March 21, 2018
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21Mar

UK. How British Savers Finance Putin’s Russia

The quaint English city of Salisbury, known for its medieval streets, picturesque cathedral and bus tours to Stonehenge, has found itself on the map of international intrigue after a former Russian spy and his daughter were found poisoned on a park bench. Yet there’s a link with Russia that predates the sinister events that unfolded this month. It places Salisbury at the intersection of espionage and finance and exposes the scale of the challenge the U.K. faces if it wants...

March 21, 2018
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20Mar

Canadian pension fund CDPQ wants to be its own private equity investor

Caisse de depot et placement du Quebec (CDPQ), one of Canada’s biggest public pension funds, has relied on private equity firms to invest in leveraged corporate buyouts. Now it is building its own investing team to depend less on buyout firms as middle men. Private equity firms buy companies only to sell them a few years down the line for a profit. Their reputation as costcutters eyeing a speedier exit makes some companies more open to consider an investment from...

March 20, 2018
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20Mar

China able to pay old-age pension in time, in full: Premier Li

Premier Li Keqiang said on Tuesday that China has the ability to pay pension benefits to the senior in time and in full. The balance of the country's pension funds stands at 4.1 trillion yuan (645 billion U.S. dollars), Li told a press conference following the conclusion of the annual legislative session. "We have more revenue than expenditure," Li said. "We also have 1.8 trillion yuan social security fund as a strategic reserve". Read More: ECNS

March 20, 2018
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20Mar

UK. Stronger powers announced for TPR

The Pensions Regulator (TPR) will be given the power to issue punitive fines to companies that deliberately put defined benefit (DB) pension schemes at risk, the government confirmed today. Its white paper also outlines how legislation will be introduced to ensure company directors that have “committed wilful or grossly reckless behaviour” in relation to a pension scheme are criminally prosecuted. Funding standards will be enforced through a revised code, focused on prudence when assessing liabilities, appropriate factors for recovery plans, and...

March 20, 2018
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19Mar

Malta. Pensions boomerang hits MPs

The ill-conceived plan to enact legislation giving members of Parliament more privileges backfired. It also severely hit the reputation of parliamentarians to get their priorities right when discussing their own remuneration packages. In a nutshell, the primary provision of the proposed legislation was to give the opportunity for MPs who served in Parliament for one term to qualify for a full MP pension. So far, an MP has to serve two five-year terms to be eligible for a pension. In a...

March 19, 2018
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19Mar

UK. Jail threat for rogue bosses who risk workers´ pensions

Rogue bosses who risk workers’ pensions face being jailed for up to two years under plans to criminalise unscrupulous business activities. Theresa May said a new package of measures would help protect staff by cracking down on the “irresponsible few” at the top of companies. It comes after the collapse of BHS in 2016 with a £571 million deficit in its pot for 19,000 pension holders. Read More: Daily Mail

March 19, 2018
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19Mar

Kenya. Nairobi Pensioners risk not getting pay-outs owing to a Sh13billion City Hall debt to Laptrust

Retired City Hall employees risk losing their pension dues amounting to Sh13 billion. This follows failure by the Nairobi county government to remit contributions to the fund manager. Local Authorities Pensions Trust (Laptrust) retirement scheme, which manages City Hall’s pensions scheme, says the county has not remitted pension deductions since 2013. It estimates the debt to be about Sh13 billion. Laptrust, which also manages pension schemes for workers of other county governments in the country, has threatened to take over prime...

March 19, 2018
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16Mar

US. Can AI relieve cost pressures on retirement plans?

The 401(k) plan market is undergoing a technology makeover, as fintechs offer providers new tools to lower the cost of the plans and boost profits. With the fiduciary rule adding additional scrutiny to employer plans, traditional providers are under increased pressure to find the best and cheapest vehicles for clients. Startups like Newark, New Jersey-based Dream Forward claim their advisor tech will help lower administration costs and keep retirement plans profitable. “Fees are going to come down overtime,” says Dream Forward...

March 16, 2018
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