June 2021
17Jun

Sustainable Pensions, Democratic Governance, and EU Law

By Ewan McGaughey The quality of democracy in our economy depends on the governance of capital, but Europeans are still deprived of real voice over their retirement money: the single biggest source of capital in the 21st century. This paper outlines three major problems facing EU pensions: precarious retirement, escalating inequality, and mounting climate damage. These problems start with the places where we work, the institutions that control our retirement savings, and the votes on shares that come with them....

June 17, 2021
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17Jun

German Pensionskassen call for rule easing to improve outlook – WTW survey

German Pensionskassen are calling for more relaxed regulatory requirements with a view to a more optimistic outlook, taking into account the current challenging environment. Read also Air France–KLM Completes De-Risking of Pension Plans According to a survey conducted by Willis Towers Watson (WTW), 62% of surveyed Pensionskassen support regulatory changes to improve future prospects. Read also UK. Why investment pathways matter more than you think However, only 14% of the respondents consider Pensionskasse an “interesting way” to run company pension schemes, the survey...

June 17, 2021
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16Jun

UK. TPR secures £730m insolvency protection for Sanofi Pension Scheme

Sanofi’s defined benefit (DB) pension scheme has additional insolvency protection of up to £730m for 20 years, following intervention from The Pensions Regulator (TPR). The regulator worked with the global healthcare company to secure the increased financial support for the scheme, which also includes deficit repair contributions and an upfront payment of £37m, after warning that it would take enforcement action if necessary. TPR added that the scheme, which has 16,500 members, now also benefits from a legally binding agreement which...

June 16, 2021
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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
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14Jun

UK. Watchdog warns of imbalance in pension schemes

Almost two thirds of pension schemes’ liabilities of €64 billion have been accumulated to pay the pensions of the one third of members who have already retired. The lopsided nature of scheme finances is revealed in figures from the Pensions Authority, which show that providing a guaranteed income in retirement is becoming increasingly unsustainable for the dwindling number of employers that offer them. The Pensions Authority warned that trustees were running too much investment risk as schemes struggled to remain solvent. “This...

June 14, 2021
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11Jun

Kenya. Pension payments fast-tracked as Treasury proposes stiffer measures

National Treasury CS Ukur Yatani revealed that a national retirement policy that will harmonise pension-related laws and enhance accountability is in the pipeline and will be ready by the end of this year. While unveiling Kenya’s 2021/2022 Ksh3.03 trillion budget in Parliament, Yatani said the policy seeks to achieve comprehensive pension coverage across the formal and informal sector so as to protect the interests of beneficiaries and rights of pension contributors. “Mr. Speaker, given the disparities in the design of the...

June 11, 2021
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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
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07Jun

France Says Controversial Pension Reform Is Key to Woo Investors

President Emmanuel Macron’s government isn’t abandoning its controversial plan to reform the French pension system, hammering home the argument that it’s key to attracting foreign investors. “We’ll keep working on the pension reform,” France’s Delegate Minister for Foreign Trade Franck Riester told Bloomberg News. “It shows we are committed to keep improving the business environment in France.” Read also French Senate passes social security draft budget, revives pensions polemic Macron came to power in 2017 with a pledge to boost growth and...

June 7, 2021
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04Jun

EIOPA issues Guidelines on the supervisory reporting for the Pan-European Personal Pension Product

The European Insurance and Occupational Pensions Authority published today the Guidelines on the supervisory reporting regarding the Pan-European Personal Pension Product (PEPP) to ensure the common, uniform and consistent application of the PEPP Regulation's reporting requirements. The Guidelines complement the Delegated Regulation (EU) 2021/895 and the Delegated Regulation (EU) 2021/896 and regulate the applicable reporting deadlines for the PEPP providers to the competent authorities in line with the relevant sectoral rules in place. Furthermore, the Guidelines define the requirements of...

June 4, 2021
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02Jun

UK. Pensions Regulator Urges Robust Liquidity Risk Analysis

Trustees of retirement saving schemes have improved their understanding of the liquidity risks facing their programs, but they should be more robust when they analyze those dangers, a director at the pensions watchdog has warned. David Fairs, an executive director at The Pensions Regulator, said that major government and central bank intervention programs around the globe in late 2020 — such as lowering interest rates — helped to stabilize markets during the coronavirus outbreak. But interventions in the future cannot...

June 2, 2021
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