June 2025
04Jun

Rising Discount Rates Push Pension Risk Transfer Costs Lower in April

Offloading retiree pension risk to an insurance company became less expensive in April, according to consulting and actuary firm Milliman, which tracks the cost of de–risking pension funds with its Milliman Pension Buyout Index. The firm estimated that in a competitive bidding process, average costs of a pension risk transfer declined to 101.1% of a plan’s accounting liabilities in April from 102.5% in March. At the same time, average annuity purchase costs among all insurers in Milliman’s index decreased to...

June 4, 2025
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May 2025
23May

Sustainability reporting on pension schemes the path forward

In an era marked by growing awareness of environmental, social and governance (ESG) considerations, sustainability reporting has emerged as a crucial aspect for organisations, investors and stakeholders. For pension schemes, particularly, integrating sustainability into their reporting frameworks is more than just a regulatory requirement; it’s an ethical imperative that aligns with the long-term nature of their commitments to retirees and the society. Read the complete book here

May 23, 2025
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23May

Decoding Pension Funds: Sustainability Indicators for Annual Report Analysis

By Leticia Martins Medeiros, Clea Beatriz Macagnan & Rosane Seibert Pension funds' growth highlights the need to emphasize fiduciary duty and investment sustainability, considering the current and future participants' interests (priority stakeholders) and systemic risk reduction (environmental, social, economic, and governance effects). Therefore, this study builds sustainability indicators based on the interests of pension fund stakeholders. The methodology comprised five stages: the first consisted of analyzing Annual Information Reports to create a preliminary list of indicators; the second involved examining...

May 23, 2025
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19May

Nigeria. NAICOM advocates long-term financial planning to enhance retirement security

The National Insurance Commission (NAICOM) has urged individuals to prioritise long-term financial planning and risk management to ensure a stable and secure retirement. Olusegun Omosehin, Commissioner for Insurance (CFI)/Chief Executive Officer, National Insurance Commission (NAICOM), who stated this at the 2025 Inspenonline Retirement Summit in Lagos, underlined the need for proactive retirement savings and investment strategies. Omosehin, who was represented by Julius Odidi, Lagos Director of NAICOM, emphasised that individuals must prioritise long-term financial planning to mitigate challenges associated with inflation,...

May 19, 2025
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16May

Investor Fiduciary Duties in the Crosshairs – Targeting a Mirage

By Susan N. Gary, Keith L. Johnson & Nicholas W. Zuiker The fiduciary duties of institutional investors have become a hot issue amongst policymakers and courts, with the future financial security of millions of American workers and savers at stake. Unfortunately, many recent policy debates and court opinions on investor fiduciary duties demonstrate only a limited understanding of fiduciary duty principles.  A more complete appreciation of the full range of investor fiduciary duties is essential to inform policy and court decisions that...

May 16, 2025
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16May

UK. Mandating large pension scheme investments could risk UK growth gains

Mandating how large pension schemes invest to support UK growth could risk undermining the benefits these schemes already deliver to the UK economy, WPI Economics has suggested. The research suggested that while the UK government is seeking to attract more investment, enforced allocation rules could fail to address broader barriers already identified, such as fiscal incentives, planning system bureaucracy, and the need for a “clear and consistent” industrial strategy. WPI Economics’ report found that large UK pension funds deliver “significant” economic...

May 16, 2025
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15May

Mexico. Afore Assets Surpass $350 Billion for the First Time

During the first quarter of the year, Mexican Afores surpassed $350 billion in assets under management for the first time in history, according to final figures from the regulatory agency. The Afores ended the first three months of the year with a total balance of MXN 7.194 trillion, equivalent to $359.7 billion, based on an average exchange rate of 20 pesos per dollar—the rate at which the Mexican currency was traded during the first quarter. The accumulation phase for Mexican Afores is nearing its end, and according to industry...

May 15, 2025
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15May

Despite Turbulence, Colombian Pension Funds Grow by 11%

Although global markets have been marked by turbulence this year, Colombian pension funds posted double-digit returns during the first quarter. That is the picture reflected in figures recently published by the pension fund managers’ trade association, Asofondos. In a statement, the organization—which represents the AFPs Colfondos, Porvenir, Protección, and Skandia—reported that pension fund assets closed March 2025 with a total value of 467.7 trillion Colombian pesos (about USD 109.89 billion). This represents 11% growth compared to the 421.3 trillion pesos (USD 99 billion) reported in March 2024. “This growth reflects not only returns (which totaled 38 trillion pesos over...

May 15, 2025
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15May

Jamaica. Pension assets climb to record $811b

The Financial Services Commission (FSC) is advising pension fund managers to be cautious in their investment decisions so as to safeguard the retirement savings they administer. It comes against the backdrop of changing trade and immigration policies in the United States that the pension regulator said could impact the local economy, given the trade relationship between the two countries and Jamaica’s reliance on foreign aid for development purposes. Jamaica’s private pension market reached a record $810.97 billion in assets under management...

May 15, 2025
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09May

Beyond the Bottom Line: How ESG Engagement Reshapes Pension Fund Strategy

By Allen Mendenhall & Daniel Sutter The study suggests that pension funds have developed methods to advance ESG objectives without significantly changing their investment portfolios. This approach enables them to influence corporate behavior while maintaining financial positions. However, all pensions and investors may suffer reduced returns when activism undermines value-creating investment. Pension systems that merely engage, rather than divest, may not underperform compared to other funds, but their tactics allow government-backed entities to exert extraordinary influence without sufficient accountability or...

May 9, 2025
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