September 2021

Can Insurers Be a Pension Safety Net?

Pensions are complicated enough without employers passing the buck onto someone else, but increasingly, that is what's happening. In exchange for buying a group annuity, employers are transferring their pension-paying obligations to life insurance companies, who pay the pension. The practice, known as pension risk transfer or de-risking, has implications for how pensions are protected and whether the payments are off limits to creditors. About 33 million Americans still participate in private pension plans, according to the federal Pension...

US. Suburban residents risk losing homes over rising pension costs

By Amy Korte Patricia Hill grew up in Chicago’s Hyde Park neighborhood dreaming of one day owning a home. She and her husband accomplished that dream in 2003 when they moved to the suburb of Matteson to raise their two daughters. They bought a two-story home in a quiet neighborhood for $315,000. Her property taxes were $7,800 for 2004. But Hill’s home is now worth less than she paid for it back in ’03. Meanwhile, her property taxes have done anything...

US. Many Teacher Pension Plans Get Failing Grade: New Report

Roughly three-quarters of states offer teachers a retirement plan that isn’t making the grade, according to a ranking released Tuesday. Just 13 states received either a B or a C grade overall in Bellwether Education Partner’s latest look at teacher retirement plans. None received an A. South Dakota, Tennessee, Washington, Utah and New York scored closest, topping the nonprofit organization’s new ranking. Pennsylvania, Connecticut, Kentucky New Jersey and Illinois rounded out the bottom five states. Most teachers are enrolled in a defined-benefit...

Sustainability Gains In Asset Management, Led By Marketing

Asset managers are paying more attention to ESG — environmental, social and governance — concerns, according to a recent report from Northern Trust. “While many European markets have long made ESG a focus in their investment strategies, other mature markets in parts of North America and Asia have had a less straightforward approach,” Northern Trust reported, although recently Canadian asset managers have moved ahead of the U.S. “Alongside the pandemic, the summer of 2020 brought a global reckoning with racism, originating...

UK’s biggest pension scheme set to screen investments based on workforce diversity

The UK’s largest workplace pension scheme Nest has joined forces with the Church of England Pension Board to sign up to a new charter committing them to screen their investments taking account of gender and ethnicity diversity. It marks a significant step towards tackling the asset management industry’s serial image problem, namely, that they’re all male, pale and stale. A study run by investment data firm reveal more funds in the UK are run by men called Dave than by women. Now...

US. Indiana Public Retirement System posts net 23.1% return for fiscal year

Indiana Public Retirement System, Indianapolis, returned a preliminary net 23.1% for the fiscal year ended June 30. The preliminary net return of the system's $38 billion defined benefit plan was higher than its policy benchmark return of 22.4% in the year ended June 30 as well as in other reported time periods as of the same date. For the three, five and 10 years ended June 30, the DB plan returned preliminary annualized net returns of 10.7%, 9.9% and 7%, respectively,...

August 2021

Does the U.S. have a retirement crisis?

By Alicia H. Munnell At the end of a recent conference, the perennial question arose — once again — as to whether the United States faces a retirement crisis. Read also U.S. corporate pension funding rises in August – 2 reports I’ve never been wedded to the word “crisis,” but the Center’s National Retirement Risk Index (NRRI) suggests that about half of today’s working-age households are at risk of not being able to maintain their standard of living in retirement. While the...

Zimbabwe. NSSA closes accounts for widows

THE National Social and Security Authority (Nssa) has closed accounts for widows and widowers, triggering an outcry. In an interview yesterday, Masvingo Pensioners Forum co-ordinator Charles Gonzi described the move as inconsiderate. "Nssa closed accounts for those with deceased husbands and wives who could not register on time. We were told we needed to bring our children regardless of where we are coming from. In this COVID-19 pandemic, movement is very difficult. How are people supposed to travel in this environment?"...

India. Pensioners’ body urges Govt to exempt pension from income tax; seeks PM’s intervention

Pensioners' body Bharatiya Pensioners Manch has urged Prime Minister Narendra Modi to exempt pension from income tax to provide relief to the senior citizens in the country. In a letter shot off to the Prime Minister on August 25 this year, the body argued that if the pensions of the Members of Parliament and Members of Legislative Assemblies are not taxable, then why does the government levy income tax on the pension of retired employees. "Every retired person is paid pension...

Plan for early pension access in South Africa could do more harm than good, authorities warn

Financial authorities have warned that the proposed Pensions Funds Amendment Bill could have a harmful impact on financial savings in South Africa. The bill, which was tabled by the opposition Democratic Alliance, will allow retirement fund members to access a portion of their savings in cash before retirement as a guarantee for a loan. The bill makes provision for this by amending the current Pension Funds Act to allow pension fund members to obtain a loan, secured by a guarantee from...