July 2017

11Jul

UK’s BMW Workers Accept New Pensions Deal, Ending Dispute

British workers at BMW's Mini and Rolls-Royce operations have overwhelmingly accepted a new offer from the German carmaker on Monday over the closure of its final salary pension scheme, ending a disagreement which had led to strikes. Over 80 percent of members at four sites, including BMW's Mini plant and Rolls-Royce facility in southern England and engine production site, accepted the new deal which will close the final salary scheme, Britain's biggest union Unite said. Members were offered greater flexibility regarding...

July 11, 2017
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11Jul

Pension funds ask U.S. regulators to expand companies’ workforce disclosures

A coalition that includes some of the largest U.S. pension funds want federal regulators to force big banks and other public companies to disclose details on how they manage, compensate and incentivize their employees. In a rulemaking petition seen by Reuters, a coalition of 25 institutional investors including the California Public Employees' Retirement System (CalPERS) and the California State Teachers' Retirement System (CalSTRS) has called on the U.S. Securities and Exchange Commission to craft regulations requiring public companies to provide...

July 11, 2017
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11Jul

243 Million Reasons For A New Pan-European Personal Pension Product

It is estimated that only around 28% of the EU’s 243 million citizens aged 25 to 59 years are currently saving into a pension. The European Commission considers that offering an alternative form of pensions vehicle will drive a change in behaviour. To this end, on 29 June, the European Commission proposed Regulations setting out a framework for a bold new pan-European personal pension product (PEPP). This emerges as part of the EU’s 2015 Action Plan on Building a...

July 11, 2017
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11Jul

Canada’s OPTrust Fund Forced to Take Risks to Shore Up Returns

Frustrated by poor returns, OPTrust Chief Executive Officer Hugh O’Reilly is moving into riskier investments as contributors to the retirement pot age. “We can’t just match cash flows, we have to take risks,” O’Reilly, whose company oversees $19.2 billion of investments for Ontario government workers, said in an interview. “We don’t want to increase contributions or reduce future benefit accruals where the active members will bear the whole risk.” OPTrust is starting a C$300 million ($233 million) venture-capital portfolio and is...

July 11, 2017
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10Jul

Ireland. Pension provision: exposing a two-tier and unequal system

A glaring anomaly in the way the cost of pensions is calculated in the public and private sectors has been revealed in a new study. It is further evidence of the need to put workers in both sectors on a more even footing when it comes to pension provision. The study by the Association of Pension Trustees of Ireland shows private sector workers and their employers would have to spend millions of euro to earn the kind of retirement benefits...

July 10, 2017
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10Jul

UK. Third of DB pension schemes could fail to pay members

It reveals that just one in five schemes have a high chance of being able to deliver on agreements in full, while the same amount have a 66% chance of failing. In addition, it was found that the typical scheme has already extended recovery plans beyond the average period of eight years, suffering a significantly higher risk of failure as a result. “Since the introduction of the Pension Protection Fund in 2005, more than 10% of DB schemes have failed to...

July 10, 2017
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10Jul

Ireland. Mandatory retirement age may be abolished

The Citizens’ Assembly is to tell the Government to abolish mandatory retirement ages, eliminate the time gap between retirement and eligibility for the old age pension, and to link that pension to average earnings, writes Caroline O’Doherty. The recommendations follow a weekend of hearings at which the assembly discussed a wide range of issues to do with income, work, and pensions for older people. Sixteen proposed recommendations were voted on and will form the basis for a detailed report to be...

July 10, 2017
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07Jul

Kenya. Push for new rules to protect retirees

The pension industry says the Retirement Benefits Authority (RBA) should set minimum qualifications for trustees. The industry has assets close to Sh1 trillion with over 1,400 registered retirement benefits schemes, 30 licensed administrators, 19 fund managers, 11 custodians and 10 actuaries. “Just like there is clamour in the political sphere for minimum qualifications for certain offices, it makes a lot of sense for us to request our regulator to pursue a point whereby trustees will have minimum qualifications and if we...

July 7, 2017
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07Jul

Sweden Opens $155 Billion in Pension Cash to Greater Risks

Sweden’s $155 billion AP pension system was given the go ahead to cut its bond holdings and invest more in private equity in a bid to boost returns and safeguard retirement funds. The new rules for AP1, AP2, AP3 and AP4 will require the funds to hold 20 percent of their assets in the safest bonds, down from 30 percent, the Finance Ministry said in a statement Friday. The proposal also does away with a 5 percent limit for non-listed...

July 7, 2017
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07Jul

Ambassadors of G7 countries urge Ukrainian parliament to adopt pension reform next week

Ambassadors of the G7 countries strongly support the pension reform proposed by the Ukrainian government and urge the Verkhovna Rada of Ukraine to adopt the corresponding legislation during its plenary session next week. This is said in a statement made by the ambassadors of the G7 in support of the pension reform in Ukraine. "We, the G7 Ambassadors, wish to express our strong support for the pension reform plan proposed by the Ukrainian government, and we call on the Rada to...

July 7, 2017
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