July 2020

29Jul

UK pension scheme NEST tightens climate change policy

The move by the scheme, which invests the retirement savings of 9 million workers, is one of the most ambitious to date and comes as regulatory pressure builds for the industry to better manage climate-related risk. As well as the effects of climate change such as rising sea levels and more extreme weather, companies are at risk of costs associated with regulatory change and litigation linked to the transition to a low-carbon economy. "Just like coronavirus, climate change poses...

July 29, 2020
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29Jul

Chilean president reshuffles cabinet over pension reform

Chilean President Sebastian Pinera reshuffled his cabinet Tuesday, replacing interior, foreign, defense and several other ministers following the defeat of a pension reform bill. Victor Perez was appointed interior minister, replacing Gonzalo Blumel, while Andres Allamand was appointed foreign minister and Mario Desbordes took over the post of defense minister. The reshuffle came after the congress passed a controversial pension reform bill last week, allowing Chileans to withdraw 10 percent of their pensions to help overcome the difficulties brought...

July 29, 2020
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29Jul

Jamaica. COVID Economic Task Force Favours Lifting Pension Investment Limits

The Pension Industry Association of Jamaica, PIAJ, says the COVID-19 economic task force’s recommendations about disaggregating the limits placed on debt and equity investments, as well as an increase in the limit for private equity investments for pension funds, are encouraging. “All our lobby efforts in relation to the liberalisation of investment limits were premised on private equity having its own limit and not aggregated with private debt, as is currently the case,” said PIAJ President Sanya Goffe. Those...

July 29, 2020
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29Jul

UK. FCA Decides Not to Implement EIOPA Guidelines in United Kingdom

The UK Financial Conduct Authority (FCA) announced on July 8 that the guidelines issued by the European Insurance and Occupational Pension Authority (EIOPA) on outsourcing to cloud service providers are not applicable to regulated activities (in this instance, insurance and reinsurance undertakings) within the UK jurisdiction. In its statement, the FCA noted that this is due to the fact that the EIOPA guidelines will enter into force on January 1, 2021, which is after the end of the EU...

July 29, 2020
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28Jul

‘We’re Going for More’ Say Chileans After Pensions Reform Crosses Free Market Rubicon

Within minutes of Chilean lawmakers approving a bill that allows citizens to draw down 10% of their pensions to help make ends meet during the coronavirus pandemic, a phrase started trending on Twitter: "We're going for more." The bill's authors insisted the raid on the private retirement system introduced in the 1980s under the Augusto Pinochet dictatorship was just an emergency measure but as it snowballed in popularity, so have the ambitions of those backing it. Lawmakers who voted...

July 28, 2020
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28Jul

US. DOL’S ESG proposal would hurt retirement accounts

The Department of Labor lost an opportunity to encourage investors to support causes that they hold close to their hearts with a proposed rule regarding the investment choices they’re allowed in their retirement accounts. It’s a proposal that also could end up damaging Americans’ retirement security long-term if allowed to become part of the Employee Retirement Income Security Act. The June 23 proposal reaffirmed standard thoughts on fiduciary responsibilities that suggest only financial risk and returns can be considered...

July 28, 2020
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28Jul

UK. Pension savers remain cautious during Coronavirus pandemic

The number of pension savers choosing to drawdown money from their pension fell by 42% in April 2020 compared to the same month last year. The latest data published by trade body the Association of British Insurers (ABI) has also shown the number of people taking a tax-free lump from their pension more than halved (-53%), while those withdrawing their entire pension fell by 30%. Figures for March 2020 had already started to show this cautious trend, as 15%...

July 28, 2020
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28Jul

India. Govt employees retiring during pandemic will get ‘provisional pension’

The payment of 'provisional pension' will initially continue for a period of six months from the date of retirement and the period of 'provisional pension' may be further extended up to one year in exceptional cases. Government employees retiring during Covid-19 pandemic will be receiving “provisional" pension till their regular Pension Payment Order (PPO) is issued and other official formalities are completed, the Ministry of Personnel, Public Grievances & Pensions said on Monday. MoS Personnel, Public Grievances & Pensions,...

July 28, 2020
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27Jul

Gig and older workers need to take control of their retirement

Several retirement trends have been brought into focus by the COVID-19 pandemic. One of the most disturbing is the number of workers between 50 and 65 who are in jobs without retirement benefits. Today half of all workers don’t have access to a work sponsored retirement plan. Read also US. DOL’S ESG proposal would hurt retirement accounts According to a recent study by Alicia H. Munnell and her colleagues at the Center for Retirement Research at Boston College, one-fifth of...

July 27, 2020
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27Jul

Japanese Trust Funds Align with Global Trends on FX Settlement Risk

Trust funds in Japan have started focusing on mitigating FX settlement risk, to which they have long been exposed. This article explains the change in focus and the factors behind this. Following 2013 guidance from the Basel Committee on Banking Supervision (BCBS) recommending the use of payment-versus-payment (PvP) settlement and netting where appropriate, Japan’s Financial Services Agency (FSA), along with the Bank of Japan (BoJ), convened Japanese wholesale FX market participants to promote PvP settlement and assist the industry...

July 27, 2020
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