June 2022
09Jun

Factors Influencing the Choice of Pension Distribution at Retirement

By Robert L. Clark & Olivia S. Mitchell One of the most important financial decisions that pension participants make concerns how they access their pension assets when they terminate employment with their plan sponsor. Their choices depend both on own preferences and the options offered by their retirement plan. This paper examines both past and future pension withdrawal choices for those with defined benefit and defined contribution pensions, separately. Our data are drawn from a set of pension distribution questions...

June 9, 2022
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09Jun

UK. TPR to finalise CDC code by 1 August; work to tackle pension scams continues

The Pensions Regulator (TPR) has confirmed that it is on track to finalise the collective defined contribution (CDC) code of practice by 1 August 2022, while further work on the issue of pension scams will be published "in due course". Speaking at the Pensions Age Northern Conference 2022, TPR lead investment consultant, Fred Berry, confirmed that TPR has been analysing industry feedback following its consultation on the draft code of practice earlier this year. Industry experts previously urged TPR to publish...

June 9, 2022
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09Jun

Hong Kong passes long-awaited labour bill to scrap MPF offsetting mechanism, protecting workers’ pensions

Move ends decade-long debate between bosses and unions, preventing employers from dipping into staff pensions to cover severance and long-service payments Three legislators from pro-business Liberal Party were among those who opposed bill Hong Kong’s legislature has passed a long-awaited labour bill that will stop bosses from dipping into staff pensions to cover severance and long-service payments, ensuring the city’s workers have better retirement protection. The Legislative Council on Thursday voted 72-5 to approve the Employment and Retirement Schemes Legislation...

June 9, 2022
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09Jun

US. Senate committee approves nominees to Fed, SEC

The Senate Banking Committee on Wednesday advanced a Federal Reserve Board of Governors nominee and two Securities and Exchange Commission nominees. Michael S. Barr, President Joe Biden's nominee as the Fed's vice chairman for supervision, and Jaime E. Lizarraga and Mark T. Uyeda, the president's nominees to the SEC, were each approved by the committee Wednesday. The three nominees testified jointly before the committee in May. Mr. Barr, a law professor at the University of Michigan who served as the Treasury...

June 9, 2022
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08Jun

US. Senators introduce SECURE 2.0 companion

Less than two weeks after releasing a discussion draft, leaders of the Senate Health, Education, Labor, and Pensions Committee introduced a retirement security bill that will likely serve as a piece of the Senate's SECURE 2.0 package. Sens. Patty Murray, D-Wash., committee chairwoman, and Richard Burr-R-N.C., the committee's ranking member, introduced the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act, or RISE & SHINE Act, and said their committee will markup the bill on...

June 8, 2022
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08Jun

UK. Women Need Extra 18 Years of Work to Equal Pension Savings as Male Peers, Survey Finds

Women would need to work an additional 18 years full-time to save the same amounts of money into their pensions as men, research suggests. Women aged 65 will typically have accumulated £69,000 in private pension wealth, compared with average men's savings of £205,800, according to workplace pension provider Now: Pensions and the Pensions Policy Institute (PPI). With women living on average four years longer than men, they need to save more throughout their lifetime to accommodate longer periods in retirement, the...

June 8, 2022
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08Jun

Nigeria. ‘Pension fund assets rise by N1.53 trillion in one year’

The National Pension Commission (PenCom) has released its First Quarter One 2022 Report, showing strong growth in pension fund assets and scheme memberships. The report shows that the total value of Pension Fund Assets under the management of Pension Fund Administrators (PFAs) increased by N1.53 trillion yearly from N12.34 trillion recorded as of the end of Quarter One 2021 to N13.88 trillion as of the end of Quarter Two of 2022. Quarterly, total pension assets rose by N46 billion from the...

June 8, 2022
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08Jun

France no longer sees raising retirement age to 65 as ‘a priority’

Pension reform, a key pledge from President Emmanuel Macron’s presidential election campaign, is no longer a major priority for the government, new Prime Minister Elisabeth Borne has said. Mr Macron had said multiple times that he planned to raise the pension age in France from 62 to 65 years, and said that the move would be one of the only ways to tackle the pension deficit. However, new PM Ms Borne has now said that it is no longer seen as...

June 8, 2022
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08Jun

US. Corporate Pension Health Continues to Worsen in May

U.S. corporate pension plans ended May with a drop in their aggregate funded status — a simple measure of their financial health. The funded ratio for U.S. corporate pension plans decreased by 0.9 percentage points from April 30 to May 31, according to Wilshire’s May 2022 U.S. corporate pension plans funding report. Specifically, the aggregate funded ratio of the combined assets and liabilities of corporate pension plans sponsored by S&P 500 companies dropped from 98 percent at the end of...

June 8, 2022
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08Jun

German government to set minimum pension fund investment quota for VC allocations

The German Federal Ministry for Economic Affairs and Climate Action (BMWK) is planning to set a minimum investment quota for venture capital investment allocations by public and private pension plans, according to a report by Investment & Pensions Europe. The proposal would result in a total of €30 billion invested in VC funds as the government looks to boost the amount of capital available to start-ups. The German Federal Ministry for Economic Affairs and Climate Action (BMWK) has drafted a start-up...

June 8, 2022
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