November 2017

15Nov

Largest U.S. pension fund may slash exposure to stocks

The California Public Employees' Retirement System, the largest U.S. pension fund, is considering more than doubling its bond allocation to reduce risk and volatility as the stock bull market approaches nine years. Calpers is looking at a menu of options for its fixed-income target ranging from the current 19 percent to as much as 44 percent, according to a presentation for a board workshop in Sacramento coming up Monday. Equities could be cut to as little as 34 percent from...

November 15, 2017
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14Nov

UK. Pensions regulator seeks first criminal charges for dodging auto-enrolment

The Pensions Regulator has for the first time charged an employer for deliberately failing to provide a workplace pension to its staff. Bus company Stotts Tours and its managing director Alan Stott pleaded guilty to 16 offences of failing to comply with the law on workplace pensions, TPR says. The regulator found 36 staff were not provided with a workplace pension and didn’t get paid contributions from June 2015 onwards. TPR director of automatic enrolment Darren Ryder says: “Dozens of staff...

November 14, 2017
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14Nov

Puerto Rico Governor Signs Executive Order Authorizing Rules for Retirement Plan and IRA Distributions in the Wake of Recent Natural Disasters

On November 8, 2017, the Governor of Puerto Rico signed Executive Order No. 2017-067 (“EO 2017-067”) authorizing the Secretary of the Department of the Treasury (the “PR Treasury”) to establish tax rules for distributions from qualified retirement plans and individual retirement accounts following Hurricane María and other natural disasters. Under EO 2017-067, the PR Treasury must create: Tax rules applicable to distributions from qualified retirement plans and individual retirement accounts (“IRAs”) that are disbursed following Hurricane María or any...

November 14, 2017
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13Nov

UK and US ‘must learn from poor countries’ to solve ageing crisis

The ageing crisis facing Britain, the US and other wealthier nations could be partly addressed by adopting initiatives being developed in poorer countries, experts say. Low- and middle-income countries have been forced to be “innovative and ingenious” in finding low-cost and effective solutions for their growing elderly populations. Some of the initiatives include: Devoting an entire city in Chile to experimenting with elderly care. Increasing involvement of older people in democracy through old people’s councils in Brazil. Training armies of volunteers in elderly...

November 13, 2017
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13Nov

The State of the Nation: Filling the gaps in Malaysia’s pensions framework

MALAYSIAN employers can do more to help their employees prepare for retirement and play a larger role in building up a more sustainable pension programme here, says global human resources consultancy Mercer. While the existing pension infrastructure has solid foundations, there are gaps to address to ensure the longer-term sustainability of the system moving forward, according to Hash Piperdy, CEO of Mercer Malaysia. “While it feels like some of these problems are many years in the future, there are decisions we...

November 13, 2017
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13Nov

US. The Constitution can’t protect underfunded public pensions

Government-employee unions won in a landslide last week, defeating New York’s ballot question to update the state constitution by 78 percent to 16 percent. Public-sector groups were worried that any changes would imperil their pensions, which the constitution guarantees. But public-sector workers should worry less about words and more about numbers. Whenever anyone writes that public-sector pensions are unsustainable, New York union leaders have a rejoinder: The constitution guarantees them. Such benefits, according to the document, “shall be a contractual...

November 13, 2017
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10Nov

UK. The pension scheme de-risking market: how to find value

The dynamics of the pension de-risking market may be summarised as market conditions mixed with supply-and-demand forces, with an overlay of regulation. This melting pot leads to a cyclical market with different structures, offering more value for money than others at a particular time. Since I started working in this market as an insurer about 20 years ago, I’ve observed many such cycles, and now as a de-risking adviser to pension schemes I help my clients seek the best available...

November 10, 2017
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10Nov

Greece. Pension cuts to reach up to 18 pct in 2019

The recalculation of pensions paid out to people who have already retired will likely lead to major cuts for pensioners of the former Traders’ Fund (TEBE/OAEE) and the civil servants’ fund, as well as those who used to work at banks and state firms. According to data presented to the country’s creditors by the Labor Ministry, three-quarters of the recalculations have been completed, while the process is expected to finish by year-end. The cuts will be implemented from January 1, 2019,...

November 10, 2017
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10Nov

UK Gov’t outlines cold calling ban timeline

Responding to a question from a fellow Conservative MP, Stephen Barclay confirmed that the government will then legislate on a ban, which will include texts and emails, as soon as parliamentary time allows. Despite welcoming the announcement as “a step in the right direction”, James Walsh of the Pensions and Lifetime Savings Association (PLSA) said: “We are still a long way from a cold calling ban actually taking effect”. Walsh, who is the PLSA’s policy lead for engagement, EU and regulation,...

November 10, 2017
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10Nov

India. Maintaining NPS return at over 10 per cent to be examined: PFRDA chief Hemant Contractor

PFRDA Chairman Hemant Contractor today called for examining sustainability of high returns of over 10 per cent to government employee NPS subscribers at a time when interest rates are in decline. SBI Pension Funds, UTI Retirement Solutions and LIC Pension Fund Ltd are the three government-managed pension funds hired by the Pension Fund Regulatory and Development Authority of India (PFRDA) that offers returns in the range of 10.16-10.52 per cent to central government employees. For the state level, the interest...

November 10, 2017
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