July 2024
04Jul

Pakistan. Govt Employees Pension Updates: Government Implements Sweeping Pension Reforms

The Pakistani government has announced major reforms to its pension system, aimed at addressing the rising costs and ensuring long-term sustainability. These changes, effective from July 2024, follow recommendations from the Pay and Pension Commission of 2020 and introduce new regulations to streamline pension payments. Key aspects of the reforms include: Gross Pension Calculation: The gross pension amount will now calculated as 70% of the average salary over the last 24 months of service before retirement, ensuring a fair basis...

July 4, 2024
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04Jul

South Africa. Pension fund members hope to pay off debt from two-pot retirement withdrawals

Pension fund members hope to pay off some debts from their two-pot retirement system withdrawals as financial pressures force 50% of consumers to cash in their retirement funds in an environment where even high-income consumers are failing to pay their home loans. And if they use money from Peter to pay Paul, they will also have to pay the tax man. According to Sanlam Benchmark research that will be revealed next week, Sanlam found in 2022 that just 31% of...

July 4, 2024
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02Jul

Pakistani govt ends multiple pensions, limits family payouts amid major reforms

Pakistan's pension system saw major amendments under Pay and Pension Commission of 2020 to deal with future increase in pension costs. The incumbent government implemented new regulations restricting multiple pensions and limiting pension payments to family members to maximum of 10 years. Under latest reforms, the gross pension amount will now be calculated as 70 percent of the average pensionable earnings received during the last 2 years of service before retirement. Finance Division made following key amendments which will be effective from...

July 2, 2024
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June 2024
25Jun

South Africa. Cosatu works with stakeholders on two-pot system implementation

The Congress of South Africa’s Trade Unions (Cosatu) General Secretary, Solly Phetoe says the affiliation is working with the National Treasury, the Financial Sector Conduct Authority (FSCA) and pension funds at Nedlac to ensure a smooth implementation of the two-pot system on September 1. The two-pot retirement system is confirmed to rollout on September 1 when workers will be able to access 10% or up to R30 000 of their existing pension funds. Phetoe says Cosatu condemns anyone that spreading misinformation...

June 25, 2024
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17Jun

UK. Election could create an opportunity for ‘radical shake-up’ in pensions

The start of a new parliament is a good time to stand back and ask some pretty fundamental questions about the UK pension system. Much of the complexity in the current system has arisen as a result of piecemeal changes, often because the government of the day was short of a billion or two to balance the books. But the promised pensions review under a potential new government offers a long-awaited opportunity to think strategically about the system as a whole...

June 17, 2024
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17Jun

​Sweden eases rules on occupational pension payout phase, allowing pauses

Sweden’s government has decided to introduce more flexible rules for the payment of occupational pensions — following agreement on the issue by the cross-party pensions group last October. During the first five payment years, it will be possible for individuals to pause payments and extend the payment period, according to an announcement from the ministries of finance and social affairs last week. Elisabeth Svantesson, the Swedish finance minister, said: “Sweden’s pensioners should be able to choose how they want to set...

June 17, 2024
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12Jun

South Africa. Two Pot Retirement System

What is a two-pot retirement? The two-pot retirement system is a reform that will allow retirement fund members to make partial withdrawals from their retirement funds before retirement, while preserving a portion that can only be accessed at retirement to help improve retirement outcomes. This means members need not resign to access part of their retirement benefit if they are in financial distress. This reform will come into effect on 1 September 2024. Who is it meant for? The new system will...

June 12, 2024
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07Jun

Protection of EU Consumers Vis – À – Vis Pension Products: the Dutch Case: Towards a New Regime

By Hans van Meerten The book is an extensive examination of the intersection between EU consumer protection laws and the Dutch pension system, particularly in light of the transition to a new pension regime. It contains lessons for a new EU consumer regime vs pension products. The Dutch reform is taken a a case study. The document advocates for a comprehensive review of the Dutch pension system and its alignment with EU consumer protection laws. It suggests that while the Dutch pension...

June 7, 2024
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03Jun

Discussions on Japan pension reform must respond to anxiety about future

Deliberations on Japan's pension reform in 2025 are in full swing at a council of the Ministry of Health, Labor and Welfare. The future vision of the country's public pensions that support people's lives in their old age is being called into question. The public pension system consists of a two-tier structure -- the national pension and employees' pension, with the latter covering company workers and others. The national pension is the basic portion that is common to all people,...

June 3, 2024
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May 2024
31May

Switzerland: Social security changes come into force, with implications for pension plans

Employer Action Code: Act Switzerland’s AHV/AVS 21 law, which was approved by parliament and then passed by public referendum in 2022, took effect January 1, 2024. Among other things, the law will increase the age for normal retirement (now called the “reference age”) for women under the social security AHV/AVS[1] retirement program as well as for pension plans that provide the mandatory BVG/LPP[2] retirement benefits. Key details The reference age for women (currently age 64) under the AHV/AVS and under BVG/LPP pension...

May 31, 2024
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