October 2017

03Oct

UK. May’s Brexit Budget Offer Is Conditional on Trade, Officials Say

The U.K. will leave a 20 billion euro ($23 billion) hole in the European Union’s budget unless the bloc agrees to give Theresa May the sweeping Brexit trade deal she wants, according to senior British officials. Britain won’t fulfill May’s offer to cover the U.K.’s share of the EU budget through 2020 without a broader Brexit deal, said the officials, speaking on condition of anonymity. The U.K. also hasn’t accepted that it’s liable for a share of the pensions of...

October 3, 2017
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03Oct

Singapore. More may be able to transfer CPF savings to parents and grandparents

Proposed changes to the Central Provident Fund (CPF) Act will lower barriers for members to transfer funds to their parents and grandparents for their retirement. The CPF Amendment Bill 2017 was introduced for its first reading in Parliament on Monday (Oct 2). After amendments to the CPF Act are passed, members will have to set aside a lower sum before they can transfer CPF savings in their accounts to their parents and grandparents, the Ministry of Manpower (MOM) said in...

October 3, 2017
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03Oct

UK. Savers who transfer pensions are ill-advised in 53pc of cases, says watchdog

Savers trying to swap their "final salary" pensions for cash face a crackdown from the City watchdog following a damning report into the quality of financial advice they are receiving. Growing numbers of people are swapping final salary pensions for "defined contribution" plans. This involves giving up guaranteed, inflation-proofed income for life, in return for often highly attractive cash offers and greater flexibility over how pensions can be spent. It is thought about 80,000 transfers have taken place this year...

October 3, 2017
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02Oct

US. Prudential Entrusted with Pension Promises to Approximately 45,000 International Paper Retirees

International Paper (NYSE:IP) will settle approximately $1.3 billion of its pension obligations by purchasing a group annuity contract from The Prudential Insurance Company of America (NYSE: PRU), a leader in retirement benefits. The agreement transfers to Prudential the responsibility for paying pension benefits to roughly 45,000 of International Paper’s retirees and their beneficiaries. International Paper’s decision to transfer a portion of its pension obligations to Prudential is consistent with a strong trend among U.S. companies that are seeking solutions to...

October 2, 2017
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02Oct

India. Should NPS managers invest in mutual funds?

The National Pension System (NPS) has dedicated fund managers, called pension fund managers (PFMs), to manage the money you invest in it. But did you know, when you choose to let your NPS money be invested in equity, they are allowed to invest it in mutual funds? For you, as an NPS subscriber, this means added costs because you pay an investment fee to the pension fund managers apart from bearing the underlying expenses of mutual funds. Among the...

October 2, 2017
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02Oct

UK. Millions to miss out on self-employed pensions revolution

Government plans to solve the self-employed savings crisis are in danger of being derailed as new research reveals as many as three million workers are set to miss out. Last year this newspaper revealed the Department for Work and Pensions was to bring the self-employed into an existing system that means all employers must provide pensions for their staff. The set of rules, known as "automatic enrolment", was introduced in 2012 and have meant an extra eight million are now saving for a...

October 2, 2017
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September 2017

29Sep

Japan reappoints giant pension fund GPIF chief Takahashi

Japan’s government on Friday said it has reappointed Norihiro Takahashi as chief of the world’s largest pension fund, Government Pension Investment Fund (GPIF). Takahashi, 59, was first appointed as the head of the $1.3 trillion fund in April last year. He is a former executive at Norinchukin Bank, a major Japanese global institutional investor, and has expertise in fixed income management. His new term begins on Oct. 1 and runs through March 2020. In 2014, GPIF made a historic shift by...

September 29, 2017
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29Sep

UN’s $61 Billion Pension Fund Starts Search for New Management

United Nations Secretary-General Antonio Guterres wants to overhaul management of the global body’s $61 billion pension fund after three years of underperforming returns and contentious delays in paying retirees. The UN Joint Staff Pension Fund is seeking candidates with “more than 20 years of proven progressively responsible experience” to replace Carolyn Boykin, the former chief investment officer of the Maryland State Retirement and Pension System, who took the UN post three years ago, according to an internal job posting seen...

September 29, 2017
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28Sep

UK. Millions may lose promised pension payout

Three million savers in defined benefit pension schemes only have a 50/50 chance of receiving the payouts they were promised, a study has concluded. Some employers were under pressure to meet their pension obligations, the Pensions and Lifetime Savings Association (PLSA) said. High-profile cases such as the BHS collapse have highlighted concerns over the future of workplace pensions. The PLSA said one solution could be the pooling of resources into "superfunds". This would allow companies to pay a fee to transfer...

September 28, 2017
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28Sep

South Africa’s $143b pension fund safe from state abuse, says minister

Finance Minister Malusi Gigaba on Wednesday assured South Africans that funds in the hands of the Public Investment Corporation (PIC) are safe, contrary to allegations that his office is considering tapping into US$143 billion of state pension funds to finance failing state-owned firms.”I want to assure all South Africans, and every pension holder that their pensions are safe and there is absolutely no attempt to dig into their pensions for reasons that are unscrupulous,” Gigaba said. The minister’s assurance was...

September 28, 2017
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