April 2021
15Apr

The Macro Challenges of Population Aging

A new paper jointly released today by The Concord Coalition and the Global Aging Institute (GAI) warns that the aging of the U.S. population not only threatens to overwhelm the budget, but could also usher in a future of permanently slower economic growth and diminished geopolitical stature. The paper, entitled The Macro Challenges of Population Aging, is the fifth in a series of issue briefs on the aging of America called The Shape of Things to Come. Read also Spain....

April 15, 2021
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14Apr

US. Florida Senate Passes Bill to Move Most State Workers to DC Plan

The Florida state Senate has passed a bill that would eliminate the option for nearly all new state employees to participate in a defined benefit (DB) plan, instead requiring them to join a defined contribution (DC) plan. Read also New York pension fund divests $7 million from Canadian oil sands firms The bill, which was sponsored by Republican Sen. Ray Rodrigues, would require new hires as of July 1, 2022, to enroll in a 401(k)-style investment plan. Employees are currently given...

April 14, 2021
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13Apr

New York pension fund divests $7 million from Canadian oil sands firms

New York’s state pension fund is restricting investment in six Canadian oil sands companies because they have not shown they are prepared for a transition to a low-carbon future, the fund’s Comptroller Thomas DiNapoli said on Monday. The New York State Common Retirement Fund will divest more than $7 million in securities already held in the companies, and not make any further investments in them, DiNapoli said in a statement. Canada’s oil sands hold the world’s third-largest crude reserves and have...

April 13, 2021
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06Apr

The Post-Pandemic Safety Net

With the United States beset by the COVID-19 pandemic, a deep economic recession, and heightened racial tensions, many observers predicted – some in hope, others resignedly – that the 2020 elections would bring about a significant change in the country’s social contract. Fortunately, they appear to have been right. Proposals to strengthen the welfare state and social safety nets have gone mainstream – and not only in America. I argued back in May 2019 that America was ready for a...

April 6, 2021
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06Apr

US. At what age should you stop saving for retirement?

It’s that time of year. My accountant sent my husband and me a note yesterday asking how much we planned to contribute to our retirement accounts for 2020. Obviously, that makes a difference in our pending tax bill. I sighed. Our contributions are fully deductible since neither of us has an employer-provided plan. But last year was a rocky one for self-employed workers like us, and our budget has been tight. My speaking business came to a screeching halt in...

April 6, 2021
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05Apr

US. New PEPs targeting firms without retirement plans

As providers of pooled employer plans scramble to attract sponsors of small- and midsize 401(k)s into their new pooled plans, at least two are taking a different tack. Rather than pursuing employers already offering workers a retirement plan, they're chasing those not offering one at all. Payroll provider Paychex Inc. has already signed up 1,000 such employers into its PEP — a milestone it hit in February, a month after its launch on Jan. 1, said Michael Majors, senior director...

April 5, 2021
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05Apr

US. If You Sell a House These Days, the Buyer Might Be a Pension Fund

A bidding war broke out this winter at a new subdivision north of Houston. But the prize this time was the entire subdivision, not just a single suburban house, illustrating the rise of big investors as a potent new force in the U.S. housing market. D.R. Horton Inc. built 124 houses in Conroe, Texas, rented them out and then put the whole community, Amber Pines at Fosters Ridge, on the block. A Who’s Who of investors and home-rental firms flocked...

April 5, 2021
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01Apr

Europe’s New ESG Rules Create an Opportunity for US Investors

By Hari Bhambra American asset managers with little connection to Europe might dismiss the European Union (EU)’s new sustainable finance regulations as irrelevant to their business. They would be mistaken to do so, however. The regulations will have a tremendous impact on asset managers and firms operating outside the bloc. The EU might be the first to move on sustainable finance regulations, but its objectives are a harbinger of things to come around the globe. To stay competitive in today’s borderless financial...

April 1, 2021
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March 2021
30Mar

Canada’s Largest Federal Pension Plan Divests From US Private Prisons

Government pension plans provide a sense of security to millions of workers globally — allowing workers to sleep more soundly knowing they will have money to support themselves and their families. But most pensioners have no idea where their money is actually being invested. Imagine the horror of discovering that your family’s security is actually being attained by separating someone else’s family. This is precisely what just happened in Canada as pensioners discovered their money was being invested in private...

March 30, 2021
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29Mar

US. Pension relief paves way for more de-risking

The $1.9 trillion American Rescue Plan Act signed by President Biden contains the most important changes in single employer pension funding relief rules since the introduction of the Pension Protection Act in 2006. What is changing? The new rules enforce two key changes in how minimum required contributions (MRCs) are calculated. Read also Retirees who pay the most in taxes make only $36,000 a year on average, study finds Firstly, the Act extends and enhances the Interest Rate Stabilization mechanisms brought in over the last decade (specifically, Moving...

March 29, 2021
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