June 2021
17Jun

Air France–KLM Completes De-Risking of Pension Plans

It has taken airline operator Air France–KLM several years, but it has finally completed the de-risking of its three main Dutch KLM pension plans in a move it says will create more predictable annual contributions and less balance sheet volatility. The airline reported late last week that it had reached an agreement with the five Dutch ground unions in KLM to convert the pension plan for its ground staff into a collective defined contribution (DC) plan. Under the terms of...

June 17, 2021
News, Slider, ,
Read more...
16Jun

US. Pension Worries Ease for States, Localities on Stimulus, Stocks

Public pensions performed better than anticipated during the pandemic, easing the financial strain on state and local governments sponsoring the plans, thanks in part to U.S. aid and stock market gains. The massive federal stimulus has helped head off the dire revenue picture that many governments were facing early in the pandemic. At the same time, record stock market gains and past changes to public pension operations helped drive funded levels higher and push pension management down the list of...

June 16, 2021
News, Slider, , , ,
Read more...
15Jun

US. Lost 401(k) accounts and pensions: How lawmakers want to fix the problem

For workers who lose track of their 401(k) savings accounts, help may be on the way. Proposed retirement legislation that’s pending in Congress would create an online “lost and found” database to help locate those accounts, among a variety of other provisions. While lawmakers are in the early stages of considering changes, retirement advocates say the initiative — which also would help people access lost pension benefits — can’t come soon enough. “We have serious problems with retirees not being able...

June 15, 2021
News, Slider, , , ,
Read more...
15Jun

PIC confirms it owns 30% of new SAA consortium partner

The PIC has confirmed that it owns 30% of Harith General Partners, an investment group that's part of a consortium that will own a majority stake in SAA. While still the head of corporate finance at the PIC, Tshepo Mahloele, spearheaded the creation of Harith - which was founded with PIC investments. He later left the PIC to run Harith. The commission that investigated wrongdoing at the PIC found that Harith's conduct "was driven by financial reward to...

June 15, 2021
News, Slider, ,
Read more...
14Jun

US. Pensions under fire after PE underperforms

For decades, state pension funds have relied on the private equity industry to invest retirement savings for teachers, firefighters and other public-sector employees. But in recent years, critics of alternative assets have argued that pension managers, who oversee some $4.5 trillion across the US, would be better served investing in low-cost index funds that track the S&P 500 and avoiding PE's high fees. This past week, public pension fund managers threw PE detractors more red meat, raising larger questions about...

June 14, 2021
News, Slider, , , ,
Read more...
11Jun

The Financial Times Guide to Wealth Management: How to plan, invest and protect your financial assets – The FT Guides

By Jason Butler The Financial Times Guide to Wealth Management is your comprehensive guide to achieving financial security and stability by planning, preserving and enhancing your wealth. As well as being fully updated throughout, it includes five new chapters on socially responsible and impact investing; property, land and woodlands; single premium investment bonds; non-trust structures and young people and money. Whether you're a beginner wanting an introduction to financial planning or an experienced investor looking to pass your wealth on...

June 11, 2021
Books, Investment, Pension design,
Read more...
10Jun

UK. A third of DB schemes now have professional trustees

According to data obtained from the Pensions Regulator through a Freedom of Information request, 32 per cent of DB schemes used a professional trustee company in 2020-21, which compares with 20.1 per cent in 2015-16. This means one in three DB schemes now use a professional trustee company, while in 2015 only one in five pension funds used these services. LCP stated that the rise was due to the increased complexity and weight of new regulation, requirements and guidance on DB...

June 10, 2021
News, Slider, , ,
Read more...
08Jun

U.K. investors question 20% illiquids cap proposal

Corporate pension funds are concerned that the U.K. regulator's plan to limit illiquid investments to 20% of portfolios could force them to alter their current strategies. The Pensions Regulator proposed in March that illiquid assets should not make up more than 20% of portfolios — a big departure from current regulations that state investments should "predominantly" be held in assets traded on regulated markets. The current rules are interpreted to mean that pension funds should not invest more than 50% in...

June 8, 2021
News, Slider, , , ,
Read more...
04Jun

Pandemic spurs cautious plan changes among pensions

Pension plans are cautious about making plan changes, despite the improved economy following the pandemic, according to a survey by Mercer and CFO Research. The report is based on responses from 201 senior finance executives at firms with $500 million or more in annual revenue. About a third of respondents said they were taking advantage of relief in the American Rescue Plan Act to change funding thresholds to avoid benefit restrictions or participant notices, but only 15% expect to speed...

June 4, 2021
News, Slider, , ,
Read more...
04Jun

Botswana’s $7.5 billion pension fund appoints South African administrator

Botswana’s Public Officers Pension Fund (BPOF), with 83 billion pula ($7.85 billion) in assets under management, has appointed South African advisory firm NMG Benefits to administrate the fund. Effective June 2, NMG Botswana, a joint venture between BPOPF (51%) and NMG South Africa (49%), will collect contributions, manage payrolls and maintain records for the 156,000-member fund, it said late on Wednesday. The outsourcing of the fund’s administration is to comply with a 2017 decision by Botswana’s regulators that all pension funds...

June 4, 2021
News, Slider, , ,
Read more...