August 2021

Turkey: New Regulation On Activities To Be Evaluated Within The Scope Of Insurance Services And On Distance Insurance Contracts Has Been Published

The new regulation details the rules on the insurances that can be provided linked to goods and services offered by businesses whose primary business activity is not insurance brokerage which is becoming to stand out in practice. As per the new regulation, business processes carried out under the abolished regulation will be required to be compliant with the new Regulation by 1 September 2021. Accordingly, with the new regulation, insurance intermediaries, banks and institutions incorporated under special laws and authorized to...

Regulator drops plans to cap investments for UK pension schemes

The UK pensions regulator has abandoned plans to limit investment freedoms for retirement schemes holding billions of pounds of assets, as Boris Johnson and Rishi Sunak urge trustees to plough more cash into supporting the UK recovery. Read also UK. Pandemic widens pensions pot gender gap The Pensions Regulator has confirmed to the Financial Times that it will not proceed with a proposal, first outlined in March, to cap investment in unquoted assets to no more than a fifth of a...

July 2021

Mboweni pushing for major retirement change in South Africa

Finance minister Tito Mboweni wants a key regulatory change that will allow South Africans to access their retirement funds early. The finance minister said in a media briefing on Wednesday (28 July), that the change will be made with the proviso that workers use any funds in a responsible manner. He said that workers should be able to access a portion of their retirement funds during ‘difficult times’ – whether it be for a bond repayment or to pay off debt. “A...

US. Ohio Pensioners May Hold The Key To Finally Fixing America’s Struggling Public Pensions

It’s no secret that America’s struggling public pensions are a hot mess. Lack of comprehensive state regulation; the failure of legislative oversight; lay boards lacking investment experience; Wall Street donations to corrupt influential politicians and law enforcement indifference, all contribute to the morass. It seems, on the one hand, no one with authority over pensions wants to see improvements and, on the other, participants whose retirement security is at risk have no say as to how their savings are...

UK. Triple lock is far from the biggest pension issue on government’s plate

One of the realisations of reaching an age when you are beginning to plan the details of what to do when you finally stop work is how much those preparations are affected by decisions made by others, over which you have limited control. Chief among them is the issue of money. The income you retire on is a key determinant in what happens next: how comfortable your life will be and what compromises you need to make to get through...

Will the online pensions revolution take off?

Senior citizens and coins in glass jars are some of the common themes you find when you look up ‘pensions’ on an image search engine. But in recent years the industry has been catching the attention of fintechs. In June, Plum announced it was expanding into retirement savings with the launch of a self-invested personal pension, two months after PensionBee floated on the London Stock Exchange. Both providers, and others such as Moneybox and Penfold, to name a few, enable savers...

UK. Govt introduces public service pensions bill in parliament

The new legislation, introduced by Conservative peer Viscount Younger of Leckie, was first announced in the Queen’s Speech in May. The bill intends to fix the age-based discrimination against younger pension scheme members that stems from reforms introduced to public sector schemes in 2015. These reforms meant that while most members were moved to new career average revalued earnings schemes, individuals aged 44 years or more on April 1 2015 were allowed to stay in their original defined benefit schemes. The Court...

US. Federal government’s rescue plan for multiemployer pensions falls flat, critics say

Earlier this year, Congress threw a lifeline to troubled multiemployer pension plans. But the rescue effort is getting tangled in regulations that may ultimately sink many of the retirement plans, pension experts say. The Pension Benefit Guaranty Corp., which insures defined-benefit pension plans, issued rules early this month outlining a new multiemployer-plan financial-assistance program mandated by the American Rescue Plan passed in March. The law allows certain underfunded multiemployer plans to apply for taxpayer-funded financial assistance that carries no repayment...

U.K. releases proposals for collective defined contribution plans

The U.K. Department of Work and Pensions is seeking views from trustees and plan sponsors on its draft collective defined contribution plan regulation published Monday. The proposal follows the U.K. Pension Schemes Act 2021, which permitted employers for the first time to launch collective DC plans, also referred to as collective money purchase plans. In a CDC plan, income is secured by pooling plan participants' assets and investments, and participants bear the longevity and investment risk. That is in contrast to...

India. PFRDA, government in talks to tweak law to cover retirement funds

The government and the Pension Fund Regulatory & Development Authority (PFRDA) are discussing amendments to the law to ensure the regulation of a large number of superannuation funds that currently escape the required scrutiny Although there are no official estimates, around 400-500 are seen to be “unregulated” superannuation funds, with 50-60 being large players. There are at least three regulators for the pension business, with PFRDA handling the National Pension System (NPS), while the insurance regulator deals with annuities sold...