December 2020

18Dec

Australian Regulator Questions 10 Pensions Over Poor Performance

Australia’s prudential regulator will consider using its enforcement powers on 10 default retirement savings plans that were found to be among the nation’s worst performers for a second year. The Australian Prudential Regulation Authority said Friday it is assessing whether the eight trustees managing the plans have failed their obligations to members and will seek information on how they’re addressing the underperformance. APRA will then determine what action will be taken, including whether to use its power to force...

December 18, 2020
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November 2020

24Nov

Australia’s Financial Firms Want to Turn Capital Markets Green

Australia’s largest financial companies are targeting net-zero emissions over the next 30 years as the global shift to a low-carbon economy gathers pace. The Australian Sustainable Finance Initiative on Tuesday released 37 recommendations to help the financial sector target climate neutrality by 2050 and ensure it remains competitive. They include setting interim carbon reduction targets when deciding lending, insurance and investments as the next decade will be critical to achieving the goal, according to the plan. The road map...

November 24, 2020
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19Nov

Australia. 12% superannuation hangs in the balance

The federal government will release the findings of its review into retirement incomes on Friday. Amongst other things, the review is believed to support a recent warning from Reserve Bank governor Philip Lowe that the legislated increase in the superannuation guarantee (SG) will reduce wages and economic growth. The SG is slated to rise from 9.5% to 10% in mid-2021, but the government is set to delay a decision on proceeding with this increase until it hands down the...

November 19, 2020
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13Nov

Pension Fund Climate Change Lawsuit Settles

A lawsuit filed by an environmental scientist in Australia against his pension fund for not adequately disclosing or assessing the effect of climate change on its investments has been settled. Bloomberg reports that the Retail Employees Superannuation Trust, commonly referred to as Rest, has committed to net zero emissions in its portfolio by 2050. The fund also said it would “enhance its consideration” of such risks when making investments, publicly reveal its holdings and monitor the approach of its...

November 13, 2020
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09Nov

75% of Aussies support 12% superannuation guarantee increase

An overwhelming majority of Australians support lifting the superannuation guarantee to 12% despite Reserve Bank modelling revealing that doing so will shrink wages growth. Three in four Australians say they support increasing the super guarantee to 12%, according to a nationwide survey conducted by the Association of Superannuation Funds of Australia (ASFA). Only 12% of the 1,375 people surveyed said they think the super guarantee rate should remain unchanged at 9.5%. The superannuation guarantee is the minimum amount your...

November 9, 2020
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03Nov

Australian pension fund settles landmark climate lawsuit

One of Australia’s largest pension funds on Monday agreed to settle a landmark climate risk litigation filed by a 25-year-old member who alleged it was failing to protect his retirement savings against climate change. REST acknowledged in a statement that climate change would lead to catastrophic economic and social consequences and that the phenomenon was a “material, direct and current financial risk” to the superannuation fund. The closely watched case could influence how global funds manage such risks in...

November 3, 2020
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October 2020

15Oct

The Unequal Burden of Retirement Reform: Evidence from Australia

By Todd Morris As governments try to contain rising expenditure on retirement pensions by increasing eligibility ages, there are concerns that such reforms disproportionately affect poorer households. Using detailed longitudinal data, I examine this trade-off in the context of an Australian reform that increased women’s pension-eligibility age from 60 to 65. While this reform led to significant reductions in net government expenditure, the negative effects on household incomes were concentrated among poorer households. These unequal impacts meant that,...

October 15, 2020
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13Oct

Australia. Release the Retirement Income Review: Labor

Labor MP Stephen Jones has joined ASFA and the Business Council of Australia in demanding the government release the long-awaited Retirement Income Review ahead of more changes to super. Jones, who was speaking at an online event for ASFA, criticised the government's latest raft of superannuation reforms and the early release of super (ERS) program. "The Superannuation Minister [Jane Hume]- who flips and flops between ambivalent and conflicted in her own portfolio - argues that there is no cost...

October 13, 2020
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September 2020

30Sep

Australia. New report warns JobSeeker is a ’pre-age pension’

JobSeeker payments are becoming the new “pre-age pension” as the number of older Australians signing up for the dole grows, a new report warns. Parliamentary Budget Office analysis reveals the typical welfare recipient is now an older person rather than a younger man. The reports also shows an increasing share of older Australians and women are relying on the payment for longer periods of time. “JobSeeker appears to be functioning as a kind of pre-age pension payment for some...

September 30, 2020
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15Sep

Australia. Aged care workforce stressed and under pressure

Most Australian aged care managers reported an increased workload and stress in a recent survey, as industry experts warned immediate action is needed to stop staff walking away. A survey of more than 250 residential aged care providers by risk and compliance advisors CompliSpace found 78 per cent of managers felt under more stress and 92 percent were doing more paperwork since the introduction of the Aged Care Quality Standards. CompliSpace chief executive officer David Griffiths said the sector...

September 15, 2020
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