December 2021
22Dec

Puerto Rico oversight board sues to stop new pension benefits

The Financial Oversight and Management Board for Puerto Rico said it filed a lawsuit to stop the local government from offering public workers billions in new retirement benefits that it says will undermine the island's long-sought plan to restructure its debt. In a statement issued Monday, the board said it had filed the suit in Puerto Rico District Court to stop the pension measures — known as Act 80, Act 81, and Act 82 — because they are being pushed...

December 22, 2021
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20Dec

Leftist millennial Gabriel Boric, that vowed to reform pensions for the poor, is elected president of Chile.

Leftist lawmaker Gabriel Boric, 35, on Sunday became Chile’s youngest-ever president on promises of installing a “welfare state” in one of the world’s most unequal countries. The former student activist only just met the required minimum age to run in the presidential race, seven years after being elected to his first political job as a member of Chile’s Chamber of Deputies. On Sunday, he prevailed over far-right rival Jose Antonio Kast, an ultra-conservative lawyer who had promised to cut taxes and...

December 20, 2021
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17Dec

U.K. offers pension trustees guidance on climate standards

The Pensions Regulator issued guidance Thursday to help U.K. pension trustees meet new standards for climate-related governance and reporting of both risks and opportunities. Part of trustees' responsibility is making sure that the external advice they get is relevant and competent, the regulator said in a news release. "We recognize that the governance and reporting of climate-related risk is relatively new, so trustees may be more reliant on external experts while they build their scheme's capability in this area," said David...

December 17, 2021
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17Dec

Canada. CPPIB targeting high carbon emitters for long-term investments

The Canada Pension Plan Investment Board is pursuing a new strategy that involves investing in businesses with high greenhouse gas emissions and a desire to reduce them. The strategy, which is published in a new report, aims to identify companies committed to creating value by lowering their emissions in a manner that’s consistent with the CPPIB’s own timeframe. The strategy was devised by Bill Rogers, managing director and head of sustainable energies; Mike Conrad, principal in sustainable energies; and Art Pithayachariyakul,...

December 17, 2021
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16Dec

Aegon strikes deal with RGA to reinsure longevity risk in pensions

Aegon, the Dutch insurer, said on Wednesday it has struck a deal with Reinsurance Group of America (RGA) to hedge the risk that people in its Dutch pensions business will live longer than expected. The move "improves the risk profile of this business and is another step to generate stable, regular, and reliable cash flows," said CEO Lard Friese in a statement. Aegon said under the deal "initially" it would sacrifice 40 million euros ($45 million) in operating capital generation at...

December 16, 2021
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11Dec

Asset Allocation: Glide Path Design for Target Date Retirement Funds

By Thomas Present & Sharon Persyn In this thesis, we discuss and compare target date retirement fund strategies that have been used in recent literature. These strategies include the 100% equity, glide path, maximum drawdown, risk budget and target return strategy. We conduct sensitivity analyses in order to obtain optimal parameters for the different strategies. We first compare the strategies with rebalancing between two asset classes: equity (Russell 1000) as the risky asset and bonds (10Y US government bonds) as...

December 11, 2021
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Zimbabwe. Pensions funds owed $3,38bn in unpaid contributions
10Dec

Zimbabwe. Pensions funds owed $3,38bn in unpaid contributions

ZIMBABWE’s pensions and insurance organisations are owed over $3,38 billion in contributions deducted from employee salaries by companies. Insurance and Pensions Commission (Ipec) commissioner-general Grace Muradzikwa raised concern over companies deducting pension contributions from employees, but not remitting the funds. Muradzikwa made the remarks in a speech read on her behalf by director (pensions) Cuthbert Munjoma during a handover ceremony of the solar-powered borehole and groceries to Chengetai Old People’s Home in Chinhoyi on Wednesday. “As a commission, we are sensitive to...

December 10, 2021
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Boston to Divest From Fossil Fuels, Tobacco, Private Prisons
07Dec

US. Boston to Divest From Fossil Fuels, Tobacco, Private Prisons

Boston Mayor Michelle Wu has signed into law an ordinance to divest the city from the fossil fuel, tobacco, and private prison industries by the end of 2025. The ordinance prohibits using public funds to invest in the stocks, securities, or other obligations of any company that derives more than 15% of its revenue from those industries. Under the new law, fossil fuel investments are defined as investments in any company that derives more than 15% of its revenue from...

December 7, 2021
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06Dec

UK. Thousands of pension plans lost as billions accumulate – where does the money go?

MILLIONS of pension plans are at risk of being lost by Britain's workforce, with unclaimed policies racking up billions. So what happens to this money? And how can you check yours? A recent study conducted by a financial services firm has shown more than 200,000 people placed calls to the Department of Work and Pensions (DWP) in the past four years alone hunting for lost pensions. Some experts have claimed the amount in lost pensions within the UK system could...

December 6, 2021
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01Dec

US. Corporate pension buyouts hit $15.8 billion in Q3 LIMRA survey

Pension buy-in transactions, in which an insurer reimburses the company for benefit payments the plan will make to its retirees and beneficiaries, are very common in the U.K., but rare in the U.S. Mark Paracer, assistant research director at the Secure Retirement Institute, said in a news release Tuesday that the combined year-to-date volume for buyout and buy-in sales of $25 billion sets the stage for the U.S. pension risk transfer market to exceed the record $36 billion set in...

December 1, 2021
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