December 2020

30Dec

US. Multiemployer Pensions Update: A Lump Of Coal In Their Christmas Stockings

How do you write about something that didn’t happen? On Sunday night, President Trump, after much delay, signed the combo Covid-relief and omnibus appropriations bill. Since I had been bookmarking a variety of articles that anticipated the inclusion of retirement related provisions in that bill, and even more voices calling for the need to resolve the multiemployer pension crisis (which I myself last addressed in October), I looked at the text as soon as it was made available, went...

December 30, 2020
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03Dec

DB or not DB, what is the solution?

By Mark Daniel  Mark Daniel takes us on a pensions journey, exploring various DB and DC plan designs and how these can help manage costs and possible risks. What a difference two years make. Boris Johnson is now the Prime Minister, Liverpool finally became Premier League Champions and, sadly (for me), Huddersfield Town are back down in football’s second tier. And then there is COVID-19. Who could have predicted any of the above? Admittedly, you didn’t need a...

December 3, 2020
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03Dec

UK. Majority of employers oppose multiple pensions dashboards

The majority (82 per cent) of employers are opposed to multiple dashboards and dashboards that do not include state pensions, research from the Association of Consulting Actuaries (ACA) has revealed. It also found that less than half of employers have cleaned their data in readiness for pensions dashboards. The ACA's survey revealed "strong support" for elements of the Pension Schemes Bill, although a quarter of employers remain opposed to the regulator's direction of travel. In particular, the research found...

December 3, 2020
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02Dec

UK. Following Arcadia, Debenhams set to close putting 12,000 jobs at risk

Debenhams stores are set to close after the failure of last-ditch efforts to rescue the ailing store chain. It means all 12,000 employees are likely to lose their jobs when the chain's 124 shops cease trading. The news comes just hours after Topshop owner Arcadia fell into administration, putting 13,000 jobs at risk. Debenhams itself had been in administration since April. Hopes of a rescue were crushed after the last remaining bidder, JD Sports, withdrew. Staff were told the...

December 2, 2020
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01Dec

UK. Arcadia is bankrupt. What will happen to the 10,000 of its pension plan?

The pension pots of thousands of employees of Topshop owner Arcadia are hanging in the balance as the retail group is hours from collapsing into administration. The pension scheme of the Arcadia group, which is expected to go bust today putting some 13,000 jobs at risk, is labouring under an estimated £350million deficit. The defined benefit pension fund could potentially be picked up by the official lifeboat scheme - the Pension Protection Fund - but that would...

December 1, 2020
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November 2020

27Nov

U.K. clarifies timeline for reform of inflation measure

Investment consultants and the Pensions and Lifetime Savings Association welcomed clarity over the future use of the retail price index to calculate U.K pension benefits and liabilities, but warned that the change will still be detrimental to participants. Chancellor of the Exchequer Rishi Sunak announced Wednesday that the RPI calculation of inflation will be reformed to bring it into line with another measure of inflation — the consumer price index — starting in 2030 at the earliest. The change...

November 27, 2020
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13Nov

UK pensions regulator warns on employer insolvency

The trustees of British defined benefit - or final salary - pension schemes must be ready for possible employer distress or insolvency to protect their members as COVID-19 impacts the economy, the country's pensions watchdog said on Thursday. "Trustees are the first line of defence for savers," Mike Birch, director of supervision at The Pensions Regulator said in a statement. "The faster they act, the more options and greater time they'll have to protect members' retirements. Trustees should know...

November 13, 2020
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September 2020

25Sep

Greece. Funded pension plan for more workers

The Labor and Social Security Ministry is examining the idea of granting younger workers – with few years of labor in the current social security system – the option of choosing to join the new funded auxiliary pension system, the very system that new entrants in the labor market must now enter by law. The same option, per the proposals examined at the General Secretariat for Social Security, will also be offered to any groups of workers who have...

September 25, 2020
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08Sep

US. Should Pre-Retirees And Retirees Worry About The Presidential Election’s Impact On Their 401(k)?

It’s understandable if pre-retirees and retirees are nervous about the impact of the upcoming presidential election on their retirement savings, especially if they’re keeping up with the news these days. If they are, they might feel as if they’re being whipsawed between conflicting headlines they’ve read or heard in the media. For example, President Trump claims the stock market will crash if Biden is elected, but not if he himself is reelected. On the other hand, several recent news...

September 8, 2020
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August 2020

27Aug

UK ‘lifeboat’ scheme for company pensions at risk

A former minister has warned that the government’s “lifeboat” scheme for company pensions is at risk from a huge wave of corporate defaults which in extreme circumstances could result in a 10% cut to pensioner incomes. Read also UK. Why we’re largely a nation of ‘no clues’ on pensions The Pension Protection Fund is the “insurance policy” for millions of people in final salary-style company pension schemes, promising to pay out if the employer becomes insolvent. It is funded by...

August 27, 2020
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