November 2017

24Nov

Brazil. Even the Watered-Down Version of the Pension Reform Lacks Backing

One day after President Michel Temer held a dinner meeting, in an attempt to gather political strength to pass the government's pension reform bill, Temer's allies are rather pessimistic concerning government's interests. Although the bill has been watered down, congressmen claim "nothing will change" regarding parliamentary support, unless the current government campaign succeeds in reducing public rejection of the reform. "Most party leaders attended dinner, but their 'followers' didn't join them. I asked: 'What happened, did you lose the strength of...

November 24, 2017
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24Nov

Australia. Criminals rorting millions from welfare system from behind bars

More than 20,000 jailed criminals have been busted illegally claiming a total of more than $16.5 million in taxpayer-funded benefits. The Herald Sun can reveal the federal government has been conducting sweeps of the nation’s prisons over the past four years to identify those criminals receiving benefits behind bars. It already costs taxpayers $110,000 to keep one prisoner locked up for a year. While inside, they are not allowed to receive welfare payments — but many fail to inform Centrelink that they have...

November 24, 2017
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24Nov

Ireland. Government needs to pursue a proper pension investment strategy

At a time the economy was booming, the National Pension Reserve Fund was established in 2001, taking up a proposal by Prof Philip Lane to plan ahead for future growth in the numbers of pensioners. The numbers aged over 65 are set to more than double by 2046, according to CSO projections. The share of the population over 65 will also rise rapidly in coming decades from 13 per cent of the population in 2011 to between 25 and 30 per cent of...

November 24, 2017
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24Nov

Tanzania: Job Cuts Loom Ahead of Pension Funds Merger

Job cuts look imminent in the social security sector following the drafting of a bill that seeks to merge four funds into one. Senior managers and operations staff will be hit the hardest as they are likely to be assigned other duties or laid off if the Bill is passed by Parliament and signed into law by the Head of State. Among these who will be affected are the directors general of the four funds, boards of directors and heads...

November 24, 2017
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23Nov

World Bank report shines spotlight on Canadian pension model

Canadian public pension funds and pension plans are regarded as among the best in the world, but they underwent an evolution of changes to get to where they are today. Because of their success, the World Bank Group partnered with four Canadian pension funds, Alberta Investment Management Corporation (AIMCo), Caisse de dépôt et placement du Québec (CDPQ), Healthcare of Ontario Pension Plan (HOOPP), and OPTrust, as well as the Government of Ontario on a report that studies the evolution...

November 23, 2017
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23Nov

What’s at Stake With Brazil’s Pension Bill

Brazil’s Congress may vote in coming weeks on President Michel Temer’s flagship proposal to cap pension spending. Since it was first presented to Congress a year ago, the proposal has been watered down several times in an attempt to secure support the three-fifths majority needed in both houses. The Temer administration now expects to guarantee at least 50 percent of the 750-800 billion reais ($230-246 billion) in savings envisaged over a decade in the original proposal. The following charts show...

November 23, 2017
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23Nov

Pan-European pension schemes – a way to close the pension gap

Europe is getting old. Ageing population is a luxury good hardly any country can afford. It has been one of the main policy challenges in the Union. Increasing old-age dependency ratio will widen the pension gap and make current pension systems unsustainable. Over the past decades, politicians have been in a rambling quest to close the gap. Their confidence in finding a solution must have been restored after the Commission Vice-President Valdis Dombrovskis announced the so-called pan-European Personal Pension...

November 23, 2017
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23Nov

Why Canadian pension plans must divest of fossil fuel investments

Combatting climate change hinges on divestment of fossil fuels across all spheres of activity. According to scientists, we are facing an impending disaster if we do not stop burning fossil fuels. Therefore, companies must reduce their carbon footprint to net zero, and carbon-based firms that cannot or refuse to change must wind down. Communities with significant economic dependence on firms that refuse to change must invest in and attract clean sustainable industries instead. Communities have to act now so as to...

November 23, 2017
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22Nov

Funds managing $670 billion react to Norway oil “revolution”

Asset management in the Nordic region is dominated by Norway’s $1 trillion sovereign wealth fund, which last week said it wants to exit all its oil and gas stocks. Bloomberg spoke with institutional investing heads in Sweden, Norway, Denmark and Finland who together help manage a total of $670 billion, to hear their reactions. Here’s what they said: Seminal Moment Norway’s wealth fund “is clearly indicating that this is a completely new ball game,” said Sasja Beslik, head of group sustainable finance,...

November 22, 2017
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22Nov

US. Pension Funds Would Be Well-Advised to Reduce Risk

Municipal pension plans are in a tough spot. They have trillions of dollars in unfunded liabilities, interest rates are low, and we’re coming up on the ninth consecutive year of stock market gains in the U.S. Municipalities are going to have a hard time balancing their need to take risk against their reluctance to do so in this environment. The largest U.S. pension fund is considering making a change by reducing equity risk in its portfolio. The California Public Employees’...

November 22, 2017
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