July 2017

10Jul

Ireland. Pension provision: exposing a two-tier and unequal system

A glaring anomaly in the way the cost of pensions is calculated in the public and private sectors has been revealed in a new study. It is further evidence of the need to put workers in both sectors on a more even footing when it comes to pension provision. The study by the Association of Pension Trustees of Ireland shows private sector workers and their employers would have to spend millions of euro to earn the kind of retirement benefits...

July 10, 2017
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10Jul

UK. Third of DB pension schemes could fail to pay members

It reveals that just one in five schemes have a high chance of being able to deliver on agreements in full, while the same amount have a 66% chance of failing. In addition, it was found that the typical scheme has already extended recovery plans beyond the average period of eight years, suffering a significantly higher risk of failure as a result. “Since the introduction of the Pension Protection Fund in 2005, more than 10% of DB schemes have failed to...

July 10, 2017
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10Jul

Ireland. Mandatory retirement age may be abolished

The Citizens’ Assembly is to tell the Government to abolish mandatory retirement ages, eliminate the time gap between retirement and eligibility for the old age pension, and to link that pension to average earnings, writes Caroline O’Doherty. The recommendations follow a weekend of hearings at which the assembly discussed a wide range of issues to do with income, work, and pensions for older people. Sixteen proposed recommendations were voted on and will form the basis for a detailed report to be...

July 10, 2017
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07Jul

Kenya. Push for new rules to protect retirees

The pension industry says the Retirement Benefits Authority (RBA) should set minimum qualifications for trustees. The industry has assets close to Sh1 trillion with over 1,400 registered retirement benefits schemes, 30 licensed administrators, 19 fund managers, 11 custodians and 10 actuaries. “Just like there is clamour in the political sphere for minimum qualifications for certain offices, it makes a lot of sense for us to request our regulator to pursue a point whereby trustees will have minimum qualifications and if we...

July 7, 2017
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07Jul

Sweden Opens $155 Billion in Pension Cash to Greater Risks

Sweden’s $155 billion AP pension system was given the go ahead to cut its bond holdings and invest more in private equity in a bid to boost returns and safeguard retirement funds. The new rules for AP1, AP2, AP3 and AP4 will require the funds to hold 20 percent of their assets in the safest bonds, down from 30 percent, the Finance Ministry said in a statement Friday. The proposal also does away with a 5 percent limit for non-listed...

July 7, 2017
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07Jul

Ambassadors of G7 countries urge Ukrainian parliament to adopt pension reform next week

Ambassadors of the G7 countries strongly support the pension reform proposed by the Ukrainian government and urge the Verkhovna Rada of Ukraine to adopt the corresponding legislation during its plenary session next week. This is said in a statement made by the ambassadors of the G7 in support of the pension reform in Ukraine. "We, the G7 Ambassadors, wish to express our strong support for the pension reform plan proposed by the Ukrainian government, and we call on the Rada to...

July 7, 2017
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07Jul

Japan. World’s Biggest Pension Fund Has Best Performance in 2 Years

The world’s biggest pension fund posted its best annual gain in two years, as Japanese and overseas stocks rose while government bonds slid. The Government Pension Investment Fund returned 5.9 percent, or 7.9 trillion yen ($70 billion), in the year ended March 31, increasing assets to a record 144.9 trillion yen, it said in Tokyo on Friday. That’s the biggest advance since the fiscal year ended March 31, 2015, when it had its best annual performance on record. Domestic equities...

July 7, 2017
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07Jul

UK. Anti-smoking council has £85m invested in tobacco companies

Millions of pounds is invested in tobacco companies by the councils responsible for public health, the Post can reveal. The pension fund, which is administered by Nottinghamshire County Council and used by several other organisations throughout the county, has £85,728,471 currently invested in tobacco companies. It has £18,270,051 worth of shares in Imperial Tobacco, £57,062,838 in British American Tobacco, £4,731,484 in Philip Morris, £1,671,729 in Japan Tobacco and £3,992,369 in Altria, the parent company of Philip Morris according to the latest...

July 7, 2017
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06Jul

UK. Thousands of savers to unlock smallest pensions without paying fees

Thousands of pensioners with the smallest pots will no longer have to pay for advice to transfer out of their scheme, the Government has announced. New rules which will be laid out in Parliament today will exempt thousands of people from rip-off advice fees which can reach more than £1,000. Savers with "guaranteed annuity rate" pensions worth less than £30,000 will be given a simple valuation of their pension and will be able to transfer out without receiving advice. Around 1.5m savers...

July 6, 2017
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06Jul

Ghana. Government should address Tier Two Pension issues – Forum

The forum for Public Sector Registered Pension Schemes has given the Government up to the end of July to resolve outstanding issues regarding the Tier Two Pension Scheme. Mr Isaac Bampoe Addo, the Chairman of the forum, at a news conference in Accra, said since 2010 when the scheme commenced, goverment had about 80 months' arrears of their five per cent monthly deductions to be paid to their respective custodian fund managers. The forum the Government should transfer all contributions deducted...

July 6, 2017
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