June 2021
18Jun

Canada. The Public Sector Pension Investment Board Gains 18.4% in FY2021

The Public Sector Pension Investment Board (PSP Investments) on Wednesday reported that it gained 18.4% in its most recent fiscal year ending in March, thanks to the recovery in the capital markets after the downturn last year. The Canadian allocator, based in Ottawa, grew to C$204.5 billion (US$166.6 billion) in net assets under management, up 20.4% from C$169.8 billion from the prior fiscal year, the fund disclosed. This past fiscal year wasn’t an easy one, the fund’s top official reflected. “Our...

June 18, 2021
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18Jun

Saudi Arabia to merge pension, unemployment insurance funds with $29b in holdings

Saudi Arabia will combine two state-run pension and unemployment insurance funds into an entity with almost $29 billion of local and foreign stocks. Read also PIC confirms it owns 30% of new SAA consortium partner The cabinet approved the combination of the Public Pension Agency and the General Organization of Social Insurance (also known as GOSI). It'll boost investment returns, reduce costs and help with their diversification, Finance Minister and GOSI Chairman Mohammed Al Jadaan said in a statement. Read also Saudi...

June 18, 2021
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18Jun

UK. Why investment pathways matter more than you think

The FCA launched its Retirement Outcomes Review in 2016 to check how the market was developing after the introduction of pension freedoms and address any signs of consumer harm. It found many who chose to draw down pension savings without taking regulated advice were losing out on retirement income because their pension pots were invested in cash, even though they didn’t intend to spend it in the short term. Two consultations were issued as a result of the review. First, CP18/17,...

June 18, 2021
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18Jun

US. Required IRA, 401(k) withdrawals would start at age 75 under congressional proposal. Here’s who would benefit

The age when older Americans must start making withdrawals from retirement accounts could change yet again. Under a provision in proposed retirement legislation pending in Congress, required minimum distributions, or RMDs, would start at age 75 by 2032, up from age 72 — which only took effect last year after the 2019 Secure Act raised it from age 70½. The proposed adjustment would generally not impact most retirees: The majority — 79.5%, according to the IRS — take more than their...

June 18, 2021
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17Jun

US. The Death Of Public Pension Transparency

Forensic investigations reveal that public pensions in states such as Pennsylvania, California, Tennessee, Rhode Island, North Carolina, and, most recently, Ohio, have long abandoned transparency, choosing instead to collaborate with Wall Street firms to eviscerate state public records laws and avoid accountability to stakeholders. Read also US. Pension Worries Ease for States, Localities on Stimulus, Stocks Predictably, billions that could have been used to pay government workers retirement benefits have been squandered. Read also US. Despite Market Rebound, Rising Unemployment Hurt Public...

June 17, 2021
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17Jun

German Pensionskassen call for rule easing to improve outlook – WTW survey

German Pensionskassen are calling for more relaxed regulatory requirements with a view to a more optimistic outlook, taking into account the current challenging environment. Read also Air France–KLM Completes De-Risking of Pension Plans According to a survey conducted by Willis Towers Watson (WTW), 62% of surveyed Pensionskassen support regulatory changes to improve future prospects. Read also UK. Why investment pathways matter more than you think However, only 14% of the respondents consider Pensionskasse an “interesting way” to run company pension schemes, the survey...

June 17, 2021
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17Jun

UK. Industry fears customers are still not getting enough support with pension withdrawals

Withdrawal behaviours are among the top concerns of a third of pension providers, whilst two thirds fear this concern will only grow in the future as more and more people start to rely solely on a defined contribution pension. A new report from the Association of British Insurers (ABI), 'Future Proofing the Freedoms: Supporting customer decisions about pension withdrawals ', published today found pension industry experts fear that many people are withdrawing from their pension without any advice or guidance,...

June 17, 2021
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17Jun

Air France–KLM Completes De-Risking of Pension Plans

It has taken airline operator Air France–KLM several years, but it has finally completed the de-risking of its three main Dutch KLM pension plans in a move it says will create more predictable annual contributions and less balance sheet volatility. The airline reported late last week that it had reached an agreement with the five Dutch ground unions in KLM to convert the pension plan for its ground staff into a collective defined contribution (DC) plan. Under the terms of...

June 17, 2021
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17Jun

US. Despite Market Rebound, Rising Unemployment Hurt Public Pensions

Although cuts to state and local employment in response to the COVID-19 pandemic had only a minor impact on public pensions’ funded ratios, they did cause a rise in the required contribution rates, according to a recent report from the Center for Retirement Research (CRR) at Boston College. The report said that despite better-than-expected revenue for state and local governments during fiscal year 2020, a “dramatic reduction” in the size of the state and local workforce has negatively impacted public...

June 17, 2021
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16Jun

​Pension investors press companies over Myanmar human rights risks

Swedish pension fund AP7, the Dutch architects’ pension fund, Velliv and other European pension funds have signed a joint declaration urging companies with business in Myanmar to take action, given the risk of human rights violations under the military dictatorship. Led by Norwegian asset manager Storebrand and three other organisations, the declaration called on firms to map their activities in Myanmar in this regard, and use their leverage in support of human rights – among other things. Kamil Zabielski, head of...

June 16, 2021
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