February 2022
25Feb

Russian actions vs. Ukraine have European investors on alert

Geopolitical conflict between Russia and Ukraine is making institutional investors in Europe nervous, with some pension funds reducing their Russian holdings, and others watching closely. Read also Investors, governments act on Russia’s escalation in Ukraine The political situation that has been brewing since late 2021 escalated dramatically Feb. 24, when Russian troops invaded Ukraine. That prompted other countries, including the U.S. and the U.K. to impose increasingly strict sanctions against Russia, and the prospect of more from Canada, Japan and Australia. European...

February 25, 2022
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25Feb

Canadian Pensions Bankrolling Elder Abuse and Misappropriation of Public Money by French Long-term Care Multinational: CUPE

A new report by the Centre for International Corporate Tax Accountability and Research (CICTAR) reveals that Europe’s largest long-term care home operator, Orpea, has been building a property empire while facing allegations of elder abuse and misappropriation of public money. Orpea is 15 per cent owned by the Canada Pension Plan Investment Board (CPPIB), which also holds two seats on Orpea’s board of directors. CUPE is reiterating its call for Canadian pension funds to stop bankrolling suffering and abuse...

February 25, 2022
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25Feb

The political economy of pension reform in Argentina

Technical design for pension reform Argentina has more than two hundred different retirement bases at the national, regional, municipal and private levels. In general, subsystems other than SIPA provide a better relationship between effort to contribute during active life and perception of benefits during passive life. However, in most cases, these discrepancies do not reflect disparate risks in related work activities (strenuous, risky or unhealthy), but rather reflect the ability of these groups to achieve more beneficial rules than those implied...

February 25, 2022
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25Feb

Retirees Depleting Retirement Plan Lump Sums Faster than Five Years Ago

When approaching retirement, employees are faced with a decision that can have lifelong implications: take a lump sum payment or a guaranteed monthly annuity from their employer-sponsored defined contribution (DC) plan. According to MetLife’s 2022 Paycheck or Pot of Gold Study℠, a growing proportion of retirees are depleting their lump sums at faster rates than previously seen. The full report is available at metlife.com/paycheckgoldstudy. Today, one in three retirees (34%) who took a lump sum from their DC plan, depleted...

February 25, 2022
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24Feb

Investors, governments act on Russia’s escalation in Ukraine

AkademikerPension, Gentofte, Denmark, is halting some Russian investments as the situation with Ukraine escalates, the pension fund said in a statement Tuesday. The evolving situation in Ukraine prompted several government moves. U.K. Prime Minister Boris Johnson informed Parliament Tuesday that sanctions will be imposed on five Russian banks and three high-net-wealth individuals. Mr. Johnson described it as "the first tranche" of sanctions. U.S. President Joe Biden announced Tuesday the U.S. is imposing sanctions targeting Russia’s sale of sovereign debt abroad...

February 24, 2022
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24Feb

UK. Auto-enrolment contribution rates need to rise to 12%, expert tells MPs

Auto-enrolment contributions need to rise to 12 per cent of earnings from the current 8 per cent, but this change should not be rushed through, MPs have been told. Speaking to the work and pensions committee this morning (February 23), Nigel Peaple, director of policy and advocacy at the Pension and Lifetime Savings Association, said auto-enrolment pensions “work really well”, while the voluntary saving side simply “hasn't come through”. “We believe the answer is to increase the automatic enrolment contributions,” said...

February 24, 2022
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24Feb

China starts nationwide pooling of basic pension funds

China has started nationwide pooling of basic pension funds since Jan. 1 this year, Vice Minister of Finance Yu Weiping said Tuesday. Read also China to allow more pension providers The move will allow pension funds to be transfered from regions with surplus to regions with deficit, Yu said at a press conference, adding the ministry is drawing up related documents and will strengthen guidance to localities. Read also China releases 5-year plan for elderly care services Qi Tao, an official from the...

February 24, 2022
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24Feb

Kenya. Gov’t Urged To Make Retirement Scheme Mandatory

The Association of Pension Trustee and Administrators of Kenya (APTAK) wants the government to make pension schemes mandatory for all Kenyans to encourage the culture of saving. Speaking during the 1st annual International APTAK conference on Wednesday, President of the Association Hosea Kili said that many Kenyans face poverty upon retirement as they fall short of adequate savings. Kili said the social security fund should be made a mandatory requirement by urging Kenyans to save just as the government did with...

February 24, 2022
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24Feb

South Africa. Pension funds may now invest up to 45% of their capital offshore

During his budget address to parliament, Finance Minister Enoch Godongwana said amendments to Regulation 28 would be published in March. Regulation 28 sets out the criteria and maximum limits of where and in which asset classes retirement funds may invest. The Budget Review document announced that local pension and savings funds may invest up to 45% of their capital offshore. This is inclusive of the 10% allowance for investments into other African countries. The proposed amendments have been through two rounds...

February 24, 2022
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24Feb

AI for social protection: Mind the people

The technology that allowed passengers to ride elevators without an operator was tested and ready for deployment in the 1890s. But it was only after the elevator operators’ strike of 1946—which cost New York City $100 million—that automated elevators started to get installed. It took more than 50 years to persuade people that they were as safe and as convenient as those operated by humans. The promise of radical changes from new technologies has often overshadowed the human factor...

February 24, 2022
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