March 2021
18Mar

China to Raise Retirement Age to Offset Funding Shortfall  

China is the world’s most populated country but decades of a strictly enforced one-child policy, shortage of social security funds and a comparatively young retirement age is forcing Beijing to act in the face of a shrinking work force. Read also China. Power or Profits: Beijing’s Pension Dilemma Analysts estimate the country’s labor force will lose 35 million workers over the next five years and that during that same period, the number of citizens eligible for retirement will surge to more...

March 18, 2021
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18Mar

US Corporate Pension Funded Ratio Climbs to 92.9% in February

Funding for the 100 largest US corporate pension plans, as tracked by the Milliman 100 Pension Funding Index, improved by $67 billion in February as the plans’ aggregate funded ratio rose to 92.9% from 89.7%, thanks to a 26 basis point increase in the monthly discount rate. It was the fifth straight month funded ratios have improved. Read also U.S. Participants don’t know what is happening to their fees A paltry investment gain of 0.13% during the month led to a...

March 18, 2021
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18Mar

Kenya: Former Telkom Workers Wallow in Poverty As Pension Scheme Holds On to Payout

On a bright Wednesday morning, Agnes Ouma sits on a blue plastic chair outside her neighbour's house, in Jamhuri estate on Ngong road. She is going through her phone book. Midway, she pauses and laments: "Nobody receives my calls these days." She thinks that most of her contacts have blacklisted her. Because whenever she calls, it is to ask for financial help. Since retrenchment, she says, she has been reduced to a borrower -- borrowing without any clear plan to repay. "No...

March 18, 2021
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18Mar

U.K. Pensions Regulator seeks to streamline codes of practice

The U.K. Pensions Regulator is consulting the retirement industry on its proposal to create a new online-based code of practice, the regulator said Wednesday. The consolidated code, which would encompass updated rules on plan governance and management, would replace 10 other existing codes. The regulator intends to clarify expectations on retirement plan governing bodies to help them better assess how well their policies address financial and operational risks. "The new code of practice represents TPR's ambition to create a single point of...

March 18, 2021
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18Mar

Too much, or not enough: the risks of drawdown

For many people approaching retirement, there is a sense of dread when it comes to navigating the rules about accessing their pensions. Pension drawdown has grown in popularity since 2015. It enables savers to take a tax-free lump sum from their defined contribution pension, but keep the remainder of the money invested to provide an income during retirement. Currently, three times the number of savers are opting for drawdown plans than those who are buying annuities, according to the Financial Conduct...

March 18, 2021
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17Mar

Uber Grants Vacation Pay, Pensions to U.K. Drivers in Change of Job Status

Uber Technologies Inc. said it will grant its U.K. drivers an employment status entitling them to vacation pay and pension contributions, a costly shift in one of its largest overseas markets amid a global debate over the treatment of gig-economy workers. Read also UK. Pension longevity risk transfers reach record-breaking £55.8bn in 2020 The changes may presage legal wrangling, however, because the ride-hailing company says it will guarantee its drivers the U.K.’s minimum wage only after they have accepted a trip—not...

March 17, 2021
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17Mar

Pension Fund Managers: PFRDA Board clears licence award under new framework

Most of the ten applicants may get licences in the latest round The Board of the pension regulator, Pension Fund Regulatory and Development Authority (PFRDA), has given its approval to award licences to pension fund managers under its recently floated Request for proposal (RFP), for selection of sponsors of pension funds for National Pension System (NPS). Read also Virus exacts toll on women’s retirement savings, workplace diversity efforts – panel It may be recalled that as many as ten applicants, including new...

March 17, 2021
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17Mar

Virus exacts toll on women’s retirement savings, workplace diversity efforts – panel

The issues facing women in saving for retirement dominated discussions at Pensions & Investments' Defined Contribution Spring Virtual Series held March 8-11. With the pandemic bringing those issues into sharp relief, talk centered on the "shecession," a reference to the COVID-19-triggered exodus of women from the workforce as they wrestled with the lack of child care options. During a panel discussion on the first day of the conference, which coincided with International Women's Day, speakers lamented the departure of women from...

March 17, 2021
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17Mar

What Is The Pension Provision In The Stimulus Package? An Explainer

By Teresa Ghilarducci Included in the $1.9 trillion stimulus bill signed by President Biden on Thursday is an $86 billion aid package for participants of about 185 to over 300 employer-union pension plans. If aid had not been available more than a million retired retail clerks, candy makers, truck drivers, construction workers and others would have faced severe cuts in their pensions. These plans are part of a larger system of about 1500 multiemployer pension plans covering about 10 million workers. These plans...

March 17, 2021
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12Mar

China. Power or Profits: Beijing’s Pension Dilemma

When it comes to China’s economy, the sexy issue is the annual growth target for gross domestic product or carbon emissions or corporate debt defaults or the property market. But only one topic is really important for the longer-term survival of the Communist Party regime: pensions. And the party seems to know it. Read also India. NPS Scheme: PFRDA empowers National Pension System subscribers by offering this facility – Check benefits That’s why pension reform popped up, albeit in attenuated form,...

March 12, 2021
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