June 2021
22Jun

Pension Funds and Financial Repression

By Richard Mark Davis, Fiona Stewart, Peter Knaack Pension funds in some economies are used as a captive audience to channel capital at below market rates to government. This policy is only one tool in the financial repression toolkit, but it is receiving increased attention as governments around the world struggle to increase fiscal space and reduce their sovereign debt burden as they rebuild their economies after the pandemic. First, this paper provides an analysis of financial repression using pension funds...

June 22, 2021
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17Jun

EIB Investment Report 2020/2021: Building a smart and green Europe in the COVID-19 era

By European Investment Bank The European Union's massive efforts to rebuild after the coronavirus pandemic present a unique opportunity to transform its economy, making it more green and digital – and ultimately more competitive. The Investment Report 2020-2021 looks at the toll the pandemic took on European firms’ investment and future plans, as well as their efforts to meet the demands of climate change and the digital revolution. The report’s analysis is based on a unique set of databases and...

June 17, 2021
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17Jun

Sustainable Pensions, Democratic Governance, and EU Law

By Ewan McGaughey The quality of democracy in our economy depends on the governance of capital, but Europeans are still deprived of real voice over their retirement money: the single biggest source of capital in the 21st century. This paper outlines three major problems facing EU pensions: precarious retirement, escalating inequality, and mounting climate damage. These problems start with the places where we work, the institutions that control our retirement savings, and the votes on shares that come with them....

June 17, 2021
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11Jun

Public Pension Schemes in Seven European Countries: A Micro-Simulation Approach

By Hand Hansen The idea of this book is to provide insight into the composition and structure of public pension and early retirement schemes in seven European countries, Denmark, Sweden, Finland, Great Britain, Germany, the Netherlands and Italy. The component and structural analyses are based on micro simulation models, which, after validation of the models, makes it possible to perform a great number of precise calculations in a very short time and to present the results in graphical form, close...

June 11, 2021
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04Jun

Central Falls’ Bankruptcy and the Principle of Shared Pain

By James Tatum The small city of Central Falls, Rhode Island filed for Chapter 9 bankruptcy in 2011, with five other cities. The case could have easily been overshadowed by the insolvency of other sizable jurisdictions. Instead, Central Falls’ case is particular in both the treatment of bondholders and pensioners – one class of creditors was completely protected, while the other suffered deep cuts. The purpose of this article is to examine the method used to distribute losses in Central...

June 4, 2021
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04Jun

Strategy for the Mexican Pension System

By Gabriel Martinez The concepts of benefit adequacy and sustainability are used to lead the discussion to-wards holistic pension reform. The required strategic elements are presented, the reforms underpinning the existing pension system are reviewed, and the evolution of the main variables in a set of reference countries is detailed. The review to other countries serves to identify key points of discussion, lessons and innovative elements. Essential reform proposals are presented. Source: SSRN 557 views

June 4, 2021
Articles, Pension design, System Sustainability, , ,
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May 2021
20May

Social Security, Taxation Law, and Redistribution: Directions for Reform

By Alison McClelland, Richard Krever While it is now generally accepted that some redistribution of economic power is a legitimate goal of government, there is no consensus as to the type of redistribution that should be pursued. In the absence of a clear redistributive goal, it is impossible to evaluate critically current law, or make recommendations for change. In the first part of this article, we examine alternative models of redistribution and advocate a preferred model, namely, redistribution to promote...

May 20, 2021
Articles, Regulation, System Sustainability,
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14May

Can green fintechs solve the polluting pension problem?

Fintechs have seen green, launching apps that help us track the carbon emissions of our shopping habits, play the stock market in a planet-friendly way and even fight plastic pollution with our debit cards. These offerings are nudging consumers towards better behaviours, but there is one far bigger and far less sexy financial problem this crop of startups now wants to tackle. Pensions. A new survey from YouGov and Money Matter found that 44% of people would switch over to a...

May 14, 2021
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13May

Have scale effects on cost margins of pension fund investment portfolios disappeared?

By Jacob Antoon Bikker, Jeroen Meringa Investment costs of pension funds are crucial for their returns. Consolidation in the pension fund market proceeds continuously, often with cost savings as the main argument. Unused economies of scale in the pension fund investment costs, however, have declined over the years to values close to zero, except for the very small pension funds. This paper investigates investment economies of scale in the Netherlands and pays special attention to the non-linear relationship between investment...

May 13, 2021
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06May

S&P 1500 Pension Funded Status Increased by 1 Percent in April

By Mercer The estimated aggregate funding level of pension plans sponsored by S&P 1500 companies increased by 1 percent in April 2021 to 96 percent as a result of an increase in equity markets, slightly offset by the decrease in discount rates. As of April 30, 2021, the estimated aggregate deficit of $102 billion USD decreased by $16 billion USD as compared to $118 billion USD measured at the end of March according to Mercer,[1] a global consulting leader and...

May 6, 2021
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