February 2023
02Feb

Trade Unions In Bangladesh Win Universal Pensions

The ITUC welcomes a new law passed in the Bangladesh parliament which establishes a framework for universal pensions. This new law represents a breakthrough following intensive advocacy from trade unions, as well as civil society groups, within the Bangladesh Social Protection Advocacy Network (BSPAN) to extend social protection in the country. The new law will provide, for the first time, the possibility for all Bangladeshi workers to benefit from income security in retirement. Previously, the pension system in Bangladesh was...

February 2, 2023
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02Feb

U.K. Department of Work and Pensions launches collective defined contribution consultation

The Department of Work and Pensions (DWP) has launched a public consultation on a policy framework for broadening collective defined contribution (CDC) provision in pension schemes. The consultation was launched to get views from the public on policy proposals for broadening CDC provision beyond single or connected employer schemes, to accommodate multi-employer schemes. It has also asked for opinions on the role of CDC in decumulation, including how products of this kind might work in practice, and whether there is a significant...

February 2, 2023
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01Feb

Enhancing Investors’ Trust

By CFA Institute Investor Trust Study Investors must have confidence in the financial system overall, and trust is especially important for investment management, since client outcomes manifest only over a future horizon. Industry leaders must understand the drivers of investor trust so they can deliver the most value. In the 2022 CFA Institute Investor Trust Study, the fifth in our biennial series, we found that trust levels in financial services among retail and institutional investors have increased significantly since 2020....

February 1, 2023
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January 2023
31Jan

US. SECURE 2.0 to expand auto enrollment

A new law will expand automatic enrollment to all newly formed 401(k) and 403(b) plans, which experts say could significantly boost enrollment in retirement plans. The provision is one of more than 90 in the retirement security package, known as SECURE 2.0, which passed Congress in December and will change the future of the retirement landscape in a myriad of ways. Starting in 2025, all new 401(k) and 403(b) plans will be required to automatically enroll new employees in their plan,...

January 31, 2023
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31Jan

UK. Government explores CDC decumulation schemes

The government published a consultation on introducing a route to CDC for multi-employer schemes and master trusts on January 30, after legislation creating these schemes was introduced in 2022. Under these arrangements, employers and employees pay a fixed rate of contributions, collected in a manner similar to DC schemes. Benefits are paid with a target in mind, similar to defined benefit schemes, but with the prospect of variable increases — and the possibility of decreases. However, besides interest in whole-life CDC schemes...

January 31, 2023
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27Jan

US. Commissioner Peirce calls for SEC rule on cryptocurrency

Commission the authority to regulate the trading of digital commodities. If the SEC did pursue rule-making for digital assets, Ms. Peirce noted, "we would have to admit that we likely need more, or at least more clearly delineated, statutory authority to regulate certain crypto tokens and to require crypto trading platforms to register with us. And Congress might decide to give that authority to someone else." However, she argued that the SEC could "do the job well," specifically when it comes...

January 27, 2023
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26Jan

Should Labor Abandon Its Capital? A Reply to Critics

By: David H. Webber Several recent works have sharply criticized public pension funds and labor union funds (“labor’s capital”). These critiques come from both the left and right. Leftists criticize labor’s capital for undermining worker interests by funding financialization and the growth of Wall Street. Laissez-faire conservatives argue that pension underfunding threatens taxpayers. The left calls for pensions to be replaced by a larger social security system. The libertarian right calls for them to be smashed and scattered into individually-managed...

January 26, 2023
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26Jan

U.K. Sustainability rules could set ‘a high bar,’ but cloud definitions

Although upcoming rules on sustainable investment product labeling and disclosure could put the U.K. ahead of Europein combating greenwashing, they may not makes things clearer for institutional investors, based on reactions submitted to the Financial Conduct Authority. On Wednesday, the last day for commenting on the FCA's Sustainability Disclosure Requirements and investment labels proposed in October, financial groups and experts generally praised the regulator's approach as setting a high bar for the labeling of funds marketed as green and disclosure...

January 26, 2023
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24Jan

UK. The role of the Regulator in monitoring and enforcing pensions dashboards compliance

The Pensions Regulator ("TPR") is responsible for ensuring that all in scope occupational pension schemes comply with their duties under the Pensions Dashboards Regulations 2022 (the "Regulations"). The Regulations introduce new legal duties for trustees and scheme managers – discussed in more detail in our previous blog – and give TPR the power to monitor their compliance and take enforcement action if necessary. With the connection deadlines for some of the UK's largest pension schemes edging ever closer, TPR...

January 24, 2023
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24Jan

U.K. pension plan sponsors might need to contribute $42 billion more – analysis

New funding rules for U.K. defined benefit plans being developed by The Pensions Regulator could potentially mean plan sponsors will need to make up to £34 billion ($42 billion) in additional contributions, according to an analysis published Monday by investment consultant Lane Clark & Peacock. The forthcoming funding rules call for pension funds to be funded on a "low dependency" basis once they are "significantly mature," without further specifics. It also calls on trustees to expect sponsors to pay down...

January 24, 2023
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