October 2023
20Oct

Mercer CFA Institute Global Pension Index 2023

By CFA Institute & Monash University  The Mercer CFA Institute Global Pension Index benchmarks 47 retirement income systems around the world, highlighting challenges and opportunities within each. Botswana, Croatia and Kazakhstan were added to the mix this year. We also used updated data from the OECD and added some new questions to the integrity sub-index. The Index is made up of three sub-indices, including adequacy, sustainability and integrity, to measure each retirement income system against more than 50 indicators. Each year...

October 20, 2023
Books, Books, Reports, System Characterization, ,
Read more...

September 2023
14Sep

Minimum interest rate rise a ‘sustainable challenge’ for Swiss pension funds

The increase of the minimum interest rate – Mindestzinssatz – on pension savings to 1.25% recommend by the Swiss federal commission for occupational pensions, BVG-Kommission, is a challenge for pension funds, but sustainable, according to the commission’s president Christine Egerszegi-Obrist. “We held 1% [minimum interest rate] for years. A year ago we had negative interest rates and pension funds suffered considerably, [but] the interest rate landscape has changed, [therefore] we have carefully increased the interest rate,” she told IPE, explaining...

September 14, 2023
News,
Read more...

August 2023
25Aug

Sustainable funds return to outperformance in reversal of 2022, says report

Sustainable funds beat traditional funds in the first half of 2023, helped in particular by a rebound in growth stocks, according to research from Morgan Stanley. In a report, the bank’s Institute for Sustainable Investing said the median return for sustainable funds in the first half of this year was 6.9% and traditional funds’ 3.8%. Structural market factors were more favourable to sustainable funds’ positioning in the first half of 2023, according to the report. In 2022, a rapid rise in...

August 25, 2023
News, ,
Read more...

July 2023
20Jul

US. The debate over ESG and retirement plans continues

Part of the ongoing congressional debate over ESG centers on whether these factors should be considered as part of pension and retirement funds. Those of you expecting a resolution should prepare to exercise some patience. One of the most active representatives on the anti-ESG side of the debate is Rep. Andy Barr (R-Ky.), who introduced legislation targeting the use of ESG factors in retirement plan investments June 21. Barr has proposed changes to the Employee Retirement Income Security Act, which...

July 20, 2023
News, , ,
Read more...
14Jul

US. Worst American City for Pensions Confronts a $35 Billion Crisis

One of Brandon Johnson’s first moves as Chicago mayor was to buy himself time to address the city’s biggest financial problem: the more than $35 billion owed to its pension funds. Just days after his May inauguration, Johnson persuaded state lawmakers to shelve legislation that would’ve added billions to the pension debt, while pledging to establish a working group to come up with solutions by October. Now, the clock is ticking for the progressive Democrat to fix the worst pension crisis...

July 14, 2023
News,
Read more...
04Jul

UK. PPF Chair commits to new strategy to expand sustainability

New strategy outlines four sustainability goals across Responsible Investment, Diversity & Inclusion, community impact, and operations and supply chains. Targets include: Having achieved Net Zero for Scope 1 and 2 for its direct operations, the Fund will aim to reach Net Zero in its operational supply chain and travel emissions by 2035 or sooner. Contributing to the global transition to Net Zero through its investment portfolio and engagement activities. Year-on-year, achieving an increase in representation across all under-represented groups. Ensuring that at least 500...

July 4, 2023
News, ,
Read more...

June 2023
27Jun

Kenya govt mulls mandatory contributions to retirement medical insurance schemes

The Kenyan government says it will review the current framework for post-retirement medical insurance schemes to make contributions to them mandatory by members and sponsors. The goal is to sustain access to healthcare services by retirees. The plan is part of proposals contained in the draft National Retirement Benefits Policy by the Retirement Benefits Authority (RBA. The draft was released for public feedback last week, according to a report by Business Daily Africa. A post-retirement medical scheme can be set up as...

June 27, 2023
News, ,
Read more...
13Jun

EU. Bureau adopts measures to put MEPs’ pension scheme on a more sustainable path

Confirming its decision on 22 May, the Bureau modified the conditions of the voluntary pension fund closed in 2009 to put it on a more sustainable path. The voluntary pension fund was created in 1990, when there was no single statute for MEPs. The fund was closed in 2009, which meant that no MEPs could join the scheme as of 2009 when the new MEPs' single statute entered into force. From the moment she came in office, President Metsola tasked the...

June 13, 2023
News,
Read more...

May 2023
31May

Netherlands set to reform $1.6 trillion private pension sector

The Netherlands is set for a major overhaul of its 1.45 trillion euro ($1.6 trillion) private pension industry, Europe's largest, that will see funds ditch the promise of guaranteed benefits as they try to keep a lid on costs. Following years of debate, the Dutch Senate on Tuesday gave its final approval for the shift to a "defined contribution" system, which proponents say will yield better results - though opponents have warned of the extra risks it introduces. Traditionally, Dutch workers...

May 31, 2023
News, ,
Read more...
24May

EU. MEPs face 50% cut to luxury pensions, but public still set for hefty bill

The European Parliament is set to slash payouts from its controversial top-up pension fund by 50 per cent as part of measures aimed at eradicating a €300 million deficit and averting a looming bankruptcy. Despite beneficiaries now facing major cuts to their pension payments, around €86 million is still expected to be covered with public money. After years of procrastination and an ever-growing deficit, the European Parliament has finally taken the bull by the horns to address the impending bankruptcy of...

May 24, 2023
News, ,
Read more...