October 2020

01Oct

EIOPA sets up its key priorities in the light of the pandemic

The European Insurance and Occupational Pensions Authority (EIOPA) has set out its priorities for 2021-2023 taking into account the current market situation in the light of the COVID-19 pandemic, as well as the political priorities defined by the European Commission. COVID-19 crisis management, risk mitigation and active support to the recovery of the European economy will be the main focus for the future. Consumer protection will remain a key strategic priority in light of increasing risks emerging from the...

October 1, 2020
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01Oct

Income is a Primary Concern for Retirees

As life expectancy increases it’s only going to become more difficult for Americans to pay for their retirement. When 401(k) plans emerged 40 years ago, not much thought was given to how workers would use the money they accumulated. It has only been fairly recently that the concept of “retirement income” has taken shape, mostly in response to workers expressing deep concerns about what their futures might look like. This report looks at new ways to address retirement income...

October 1, 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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29Sep

U.S. pension funds sue Allianz after $4 bln in coronavirus losses

Pension funds for truckers, teachers and subway workers have lodged lawsuits in the United States against Germany's Allianz, one of the world's top asset managers, for failing to safeguard their investments during the coronavirus market meltdown. Read also US. Trump Plan Would Restrict Retirement Plans from Sustainable Investments: Viewpoint Market panic around the virus that resulted in billions in losses earlier this year scarred many investors, but no other top-tier asset manager is facing such a large number of lawsuits...

September 29, 2020
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29Sep

Longevity gap: Poverty remains a scourge. India must focus on economy, public health

At 69.4 years, India’s life expectancy has made almost a 20 year leap from 49.7 in 1970-75. While this is no mean feat, the sobering reality is that Japan was here in 1960 and China in 1990. The link between poverty and life expectancy is fairly obvious looking at the India story. People in Delhi, Kerala, Jammu & Kashmir, Himachal Pradesh, Punjab, Maharashtra and Tamil Nadu with lower incidence of extreme poverty live longer than the national average. Poorer...

September 29, 2020
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29Sep

Pension Fund Administrators in Nigeria and their scorecard

Despite the disruptions caused by the COVID-19 pandemic, which affected most aspects of the Nigerian economy, Pension Fund Administrators (PFAs) in Nigeria performed satisfactorily, as they recorded positive returns between January and August 2020. According to the report from Pension Nigeria, no PFA had negative returns on investment (ROI) during the period under review, indicating that all PFAs for Fund I, II, III, and IV recorded positive returns. This is quite impressive, given that the pandemic had impacted most...

September 29, 2020
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29Sep

Canada. Ontario implements new funding relief measures for defined benefit plans

Ontario Regulation 520/20 (the “Amending Regulation”) which amends Regulation 909 under the Pension Benefits Act (Ontario) (the “PBA”) came into force. The Amending Regulation provides temporary relief from pension funding obligations to employers of certain Ontario-registered defined benefit plans in two respects, as discussed below. Extension to make Catch-up Contributions The Amending Regulation provides employers of Ontario-registered defined benefit plans with a temporary extension of time to make contributions that are due under a valuation report (“Catch-up Contributions”) that...

September 29, 2020
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25Sep

US. Pensions Have Been Shunning Stocks at Their Own Peril

With the Fed signaling low interest rates for the foreseeable future, pension funds weigh bigger bets on equities Read also US. Pension Buyouts a Relative Bargain, Says Mercer Pension funds and endowments have been shifting away from the U.S. stock market for years. Some are now reconsidering that decision. Read also JPMorgan-backed Brazil fintech plans to expand in U.S., Mexico Individual investors, including younger traders using apps like Robinhood, have been playing a bigger role in the market lately. They’ve been buying...

September 25, 2020
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25Sep

UK. Scam warning signs found in half of post-Lockdown pension transfers

According to XPS, the pensions consultancy firm, in July and August of this year 51% of pension transfers, equating to twenty five million pounds in pension savings, were flagged as at risk of a pension scam. The number of transfers showing at least one red flag has dramatically increased during the COVID-19 pandemic. In 2016, only 13% of pensions’ transfers triggered a red flag. This figure rose to 33% at the end of June 2020 and then jumped considerably...

September 25, 2020
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24Sep

US. Pension Buyouts a Relative Bargain, Says Mercer

Now may be a good time for companies looking to de-risk their defined benefit (DB) pension plans to consider an annuity buyout, according to new data from consulting firm Mercer, which shows a hypothetical retiree buy-out transaction costs an estimated 97.7% of a plan’s accounting obligations. Mercer said the new data is a result of recent tweaking the company made to its US Pension Buyout Index, which tracks the relationship between the accounting liability for a defined benefit plan...

September 24, 2020
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