February 2017

26Feb

Creating a Pension to Fit the Needs of the Rural Poor

Pensions are, in a sense, a necessary by-product of a rich economy. But what will it take to sell the idea to the rural poor? Especially when their income (never particularly substantial) is seasonal, increasing at harvest time and with demand in the cities for construction-related labor. What are the inducements that can convince them to invest for a future forced upon them by the changing social structure? Olivia S. Mitchell, a Wharton professor of business economics and public policy...

February 26, 2017
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26Feb

In Puerto Rico, pensions’ decline pits retirees against lenders

As Puerto Rico attempts to sort out its tangled financial web, retirees may face bigger cuts than those in past US municipal insolvencies, due in part to an unconventional debt structure that pits pensioners against the very lenders whose money was supposed to sustain them. The US territory is doing all it can to present itself as a reliable place to invest, but resolving the pensions issue will require a careful balance. Benefit structures are widely seen as unsustainable, but draconian...

February 26, 2017
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25Feb

In sweeping move, Trump puts regulation monitors in US agencies

President Donald Trump signed an executive order on Friday to place "regulatory reform" task forces and officers within federal agencies in what may be the most far reaching effort to pare back US red tape in recent decades. Trump signed the directive in the Oval Office with chief executives of major US corporations standing behind him including Dow Chemical (DOW.N), Lockheed Martin Corp (LMT.N) and US Steel (X.N). The sweeping order directs every federal agency to establish a task force to...

February 25, 2017
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24Feb

Pensions Alert: Benefits for unmarried cohabiting partners

Supreme Court issued a unanimous judgment in a case concerning a claim by the unmarried cohabiting partner of a member of a public service pension scheme that she should be entitled to receive a survivor's pension. In this Pensions Alert we provide an overview of the judgment and consider the possible implications for private sector occupational pension schemes. Facts of the case The scheme in this case was the Local Government Pension Scheme in Northern Ireland (Scheme). The regulations governing the...

February 24, 2017
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24Feb

New index to track Kenya’s pensions industry

At least 56 per cent of retirees in Kenya depend on their children for support or live in poverty despite making contributions to their pension schemes while in active employment, a study has disclosed. The study done by Lunar Odawa-Nguchu of Blossom Consulting Services reveals that the amount the retirees receive is inadequate to cater for their needs. He said while retirement planning needs to prepare individuals for life after paid work ends, not just financially, not all aspects such as...

February 24, 2017
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24Feb

‘Why should I end up with a smaller pension than a male colleague?’

Women receive substantially less in employer pension contributions than men, setting them up for a far poorer retirement, new research has found. It suggests the smaller contributions by firms mean female employees will end up with a pension pot worth an average £47,000 less than their male counterparts. Between 2013 and 2016, men benefited from employer pension contributions worth 7.8pc of their salary each year, compared with 7pc for women. Read More: HERE

February 24, 2017
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24Feb

UK, Canada sign fintech startup deal

The Financial Conduct Authority (FCA) in the UK has formed an agreement with the Ontario Securities Commission (OSC). The deal is designed to simplify the process for fintech startups from one market to access that of the other. As part of this bond, the FCA and OSC will collaborate by sharing information on regulatory issues, as well as information on emerging trends in the market. The FCA set up an innovation hub in 2014 with the intention of supporting new firms in...

February 24, 2017
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23Feb

Measures needed so legacy pensions profit by bulk transfers

The DWP paper focusses on employers consolidating more than one occupational pension scheme or transferring from trust to master trust. It also considers relaxing the restrictions on bulk transfers of stakeholder pension scheme members. Aegon is calling on the DWP to broaden the scope of its review to pave the way for many more members to benefit from bulk transfers without the need for individual consent. Steven Cameron, Pensions Director at Aegon said: “We’re pleased that DWP is exploring how...

February 23, 2017
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23Feb

These legislators collect paychecks from Washington—and pensions from Illinois

Six-term Wheaton Republican Peter Roskam is a powerful figure in the U.S. House, where he chairs a key panel on tax policy and wants to delay Medicare and Social Security benefits for millions of Americans by raising the eligibility age. But Roskam—who has criticized his home state as a “fiscal basket case” and marshalled opposition to a federal rescue for Illinois's troubled pension funds—began collecting his $37,452 annual pension from the state for his years as an Illinois lawmaker at...

February 23, 2017
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23Feb

PFRDA to soon announce names of nine pension fund managers

Pension fund regulator PFRDA will announce in the next 10 days the names of nine pension fund managers (PFMs) shortlisted by it under the new variable commission structure, a top official said today. Pension fund regulator PFRDA will announce in the next 10 days the names of nine pension fund managers (PFMs) shortlisted by it under the new variable commission structure, a top official said on Wednesday. Moreover, the Pension Fund Regulatory Development Authority (PFRDA) is hopeful that Atal Pension...

February 23, 2017
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