November 2024
22Nov

US. Public pension funding ratios drop in October, first dip since April — Milliman

The overall estimated funding ratio of the 100 largest U.S. public pension plans fell in October, the first such decline since April, according to the Milliman 100 Public Pension Funding index. The drop in the funding ratio to 81.2% as of Oct. 31 from the estimate of 82.8% as of Sept. 30 was primarily the result of negative investment returns. It was the first decline after five straight months of increases due to strong market returns. Before that streak had begin,...

November 22, 2024
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14Nov

Brazil. Military pensions post largest deficit among retirement systems

The segment is also the one with the most retirement benefits, according to a TCU report Targeted by the fiscal reforms under consideration by the government, Brazil’s military pension system (SPSMFA) recorded a deficit of R$49.73 billion last year, placing it as less sustainable than the General Social Security System (RGPS) and generating a per capita deficit 17 times higher. This data appears in a separate report by Walton Alencar of the Federal Court of Accounts (TCU), presented during the review...

November 14, 2024
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13Nov

Australia. Government urged to transform Disability Support Pension after its ‘lacklustre’ response to Senate report

A coalition of disability and social services groups has called for further reform of the Disability Support Pension (DSP) and condemned the federal government for its official response to a Senate inquiry into the payment. In 2021, a months-long Senate inquiry into the purpose, intent and adequacy of the DSP received 134 submissions and held four public sessions. The inquiry reported early the following year while the Morrison government was still in power, and heard "overwhelming evidence" the DSP was inadequate and that...

November 13, 2024
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08Nov

A ‘Mandatory’ Pension Scheme? Late-Stage Dropouts from the National Pension System in South Korea

By Jongseok Oh, Seho Son & Kun Lee In this study, we investigate the patterns of individuals dropping out of the National Pension System, a mandatory public pension scheme in South Korea with a generous and redistributive benefit structure. We analyze administrative pension insurance data on individuals eligible for a lump-sum refund of lifetime accrued contributions at the age of 60 due to insufficient contribution records. We employ a set of linear probability models with region-fixed effects and within-between-region effects...

November 8, 2024
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October 2024
29Oct

Malta. Government to enroll its workers in pension schemes, match contributions

The government is to launch a voluntary occupational pensions scheme and will match contributions made by public sector workers, Finance Minister Clyde Caruana announced in his budget speech on Monday. The initiative aims to expand pension savings options for employees by encouraging both public and private sector workers to participate. "While employers will not be obliged to contribute, they must offer their employees the opportunity to join such a plan.  It is up to the employee to decline this option," the...

October 29, 2024
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18Oct

SEC Investigations of Public Pensions

By Kangkang Zhang In recent years, the looming threat of substantial unfunded liabilities and the obligation to meet these financial commitments have become critical issues for numerous state pension plans, prompting concerns about their solvency and management. This study examines the effect on public pension plans of investigations by the U.S. Securities and Exchange Commission (SEC). Utilizing a stacked cohort difference-in-differences design, I observe that state pensions tend to improve investment performance when subjected to SEC investigation. The observed effect...

October 18, 2024
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16Oct

Kenya. Pension payments fall by Sh23 billion as government faces cash crunch

Pension payments to retired public service workers fell short by Sh23.65 billion in the first quarter of the Financial Year 2024-2025, highlighting a growing public cash crisis amid declining tax revenues. The National Treasury's Pensions Department processed Sh32.14 billion in payments during this period, reflecting a modest increase of 4.23 per cent compared to Sh30.83 billion from the previous year. However, this amount was significantly below the prorated target of Sh55.60 billion, based on an annual goal of Sh223.15 billion due...

October 16, 2024
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09Oct

French lawmakers weigh political risk of curbing boomers’ costly pensions

 France's government has put the country's explosive pensions issue back on the agenda as it seeks to reduce a gaping budget hole. But this time, it wants pensioners to contribute to belt-tightening efforts themselves. It also wants lawmakers used to pandering to older voters to back it. Economists and analysts say that if France really wants to tackle its bloated public spending, the baby-boom generation - those born between 1946 and 1964 - must take a hit to their pensions,...

October 9, 2024
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September 2024
27Sep

Self-Control Preferences and Pension Means Testing

By Daniel Wheadon, Gonzalo Castex, George Kudrna & Alan D. Woodland We investigate the effects of self-control preferences on household life cycle decisions, macroeconomic outcomes, and the roles they play in determining optimal means testing of public old-age pensions. To that end, we develop a stochastic overlapping generations model with heterogeneous households that have Gul-Pesendorfer self-control preferences. First, we show that in economies with higher self-control costs lifetime savings diminish, while labor supply and retirement are postponed to later ages....

September 27, 2024
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27Sep

The Future of Retirement Security An International Comparison through the Lens of Adequacy, Sustainability, Equity and Plan Design

By Surya Kolluri, Catherine Reilly & David P. Richardson Countries around the world are considering and implementing reforms to their retirement systems for a variety of reasons, including increasing demographic and economic pressures. A key demographic driver is human longevity. For example, the average retiree can expect to spend about two decades in retirement, roughly double the time from 50 years ago. In the United States, life expectancy has risen by 17 years since the Social Security program debuted nearly...

September 27, 2024
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