May 2023

UK. Treasury to bear risk of unfunded legacy public sector schemes

A policy paper published on 15 May states that the cost control mechanism (CCM) for new public sector schemes will exclude those legacy schemes closed to new members. Following a review by the government actuary and a series of consultations, the government will now bear “full risk” of costs related to unfunded legacy schemes, which includes civil servants, teachers and NHS staff. The paper states: “The government believes this is the right approach to take in order to ensure the CCM...

Canadian public pension fund investments in China draw heightened scrutiny

Investments in China by Canada's largest public pension funds are facing increased scrutiny amid worsening relations between the two countries and allegations that some of those investments are funding the oppression of China's Uyghur minority. Recently, representatives of the Ontario Teachers' Pension Plan and the British Columbia Investment Management Corporation, which manages the pensions of B.C. public sector workers, told a parliamentary committee studying Canada-China relations that they had paused new direct investment in China because of the increasing risks...

France pension protest held on outskirts of Cannes Film Festival

Protests over pension reforms have roiled France in recent months, but demonstrations have been kept largely at bay at one of the country’s glitziest events, the Cannes Film Festival. On Sunday, dozens of protesters gathered in Cannes to oppose the raising of the reforms pushed through parliament by President Emmanuel Macron’s government. Those protests, however, were far removed from the central hub of the festival, the Palais des Festivals, or Cannes’ seaside boulevard, the Croisette. Instead, they gathered on the...

China issues guidance for basic elderly care system by 2025

China has issued guidance to all provinces to build a basic elderly care system by 2025, state-run Xinhua news agency said on Sunday, in the latest step to prevent a demographic crisis. Who takes care of the elderly in China, where pensions are tiny, is one of the major headaches policymakers face as they deal with the country's first demographic downturn since Mao Zedong's Cultural Revolution. The ruling Communist Party has mobilised resources to ensure that more vulnerable age groups are...

Gobierno chileno bajó la temperatura de una reforma pensional muy controvertida

La gestora de inversiones Sura Asset Management viene de cerrar el primer trimestre del año con ganancias por más de $206.000 millones, resultado de mayores ingresos por comisiones y recuperación del encaje, con un crecimiento de 35% en los ingresos. Pese a la volatilidad de enero a marzo hubo un repunte en el negocio no solo de Colombia, sino de los otros ocho países en los que opera y ya acumula US$160.000 millones en administración. Parte del negocio de la...

UK. DC funds adoption of ESG investments accelerates

How defined contribution (DC) schemes invest has been a topic of much debate with various government consultations threatening change and offering opportunity in equal measure. The master trust sector clearly wishes to be seen to be driving forward the debate, aiming to set the investment agenda and also offer more sophisticated investments to members. With the news that there is a 66% chance we will pass the 1.5ºC global warming threshold between now and 2027 it is clear we need...

Africa’s vast potential lures U.S. investors in search of returns, impact

Africa for years has struggled to attract the notice of — and money from — American pension funds. But in the past two years, U.S. pension fund trustees and other billion-dollar asset owners appear more open to investing in some of Africa's 50-plus countries, particularly in infrastructure. Institutional investors are encouraged by a U.S. government-led geopolitical charm offensive in Africa, and are wagering on higher-risk returns amid inflation, Fed rate hikes and uneven portfolio performance at home. And pension funds may one...

How To Minimize Ageism Through The Use Of AI

Artificial intelligence (AI) holds great promise in the fight against ageism, and future technologies powered by AI can be a first step to ensure older adults are fully involved in the processes, systems and, ultimately, services that will affect them throughout the aging journey. Healthcare providers, governments, academia, not-for-profits and businesses can ensure that AI is not only strengthening healthcare for older adults but also empowering them to meet their individual needs. At the same time, there are also significant risks...

UK. British Steel forges $3.4 billion buy-in to fully insure plan

British Steel Pension Scheme, Glasgow, Scotland, insured £2.7 billion ($3.4 billion) in liabilities through a buy-in with Legal & General Assurance Society, securing a buyout, according to a news release. The latest deal, which was the plan's fourth risk transfer deal since November 2021, covered the remaining 40% of liabilities and the benefits of all 67,000 plan participants. In 2017, the British Steel Pension Scheme was restructured after its plan sponsor, Tata Steel U.K., experienced financial difficulty. "Since the new scheme was...

Perú exime de impuesto de renta a Chile, Colombia y México por inversiones de AFP

Convención internacional reduce los impuestos a pagar por rentas generadas por intereses a un máximo de 10% del importe bruto de los intereses El gobierno emitió una nueva norma que buscaría dinamizar el mercado de los fondos de pensiones entre México, Colombia, Chile y Perú, países miembros de la Alianza del Pacífico, al eliminar el Impuesto a la Renta en el marco de la doble tributación, a pagar por las ganancias de capital generadas entre dichos países. Esto, además, tendría un...