July 2020

08Jul

Coronavirus Risks Manageable for Canadian Pension Funds

The 11 largest pension funds in Canada, which managed CAD1.7 trillion of net assets at year-end 2019, are expected to withstand market downturns within their respective ratings given their long-term investment horizons, ability to adjust contribution rates and the captive nature of inflows, Fitch Ratings says. However, near-term valuations and returns are expected to be pressured from the economic fallout of the coronavirus pandemic, given the breadth and global nature of its impact. Fund performance will depend on asset...

July 8, 2020
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08Jul

Norwegian Government Pension Fund: exclude nuclear weapons producers from investments

The ethical committee of the Norwegian Government Pension Fund recommended this week to include significant policy improvements on issues that PAX has advocated for, including nuclear weapons, lethal autonomous weapons and controversial arms trade. In brief, it builds the norm against weapons causing indiscriminate harm and against the controversial arms trade. Read also Banks and pension funds among investors bankrolling meat and dairy The Norwegian Government Pension Fund Global invests oil revenues on behalf of all Norwegians and is the...

July 8, 2020
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08Jul

Covid-19: Don’t Mess With My Retirement

We’ve heard a lot lately about how the Covid-19 pandemic is dramatically disrupting the retirement preparations of tens of millions of working Americans. Being furloughed from work or having your small business fail is causing people to dip into savings and interrupts putting money aside toward retirement. Those closest to retiring can be in the biggest bind, and many are choosing to delay retirement to fill their growing financial gap. But how is the pandemic affecting folks who are...

July 8, 2020
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08Jul

Pakistan caps pensions and salaries on brink of Covid-19 financial collapse

Pakistan’s financial woes are going from bad to worse as the national fiscal deficit surges to over 7% of gross domestic product (GDP) and could breach 9-10% as state revenues dry up amid Covid-19 economic devastation. That’s raising questions among analysts and business executives of whether the country is headed towards a budgetary blowout-induced financial collapse. Approved by the National Assembly on June 29, Pakistan’s 2020-21 budget is notable for a 3.4 trillion rupees (US$20.7 billion) fiscal gap that...

July 8, 2020
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08Jul

Does early access to pension funds improve health?

In a recent study from Singapore, early access to pension wealth was associated with improved health status. The findings are published in Economic Inquiry. Singapore has a unique policy that allows individuals to withdraw a proportion of their pension savings after their 55th birthday, which relaxes individuals' borrowing constraints. To examine its health impacts, investigators analyzed monthly survey data from 2015 to 2019, comparing individuals' self-reported health status before and after their 55th birthday. The results indicated that early...

July 8, 2020
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07Jul

US. Public Pensions and the COVID-19 Fiscal Dilemma

We've just passed an annual day of reckoning in public finance: Most states and many local governments close their books for the fiscal year on June 30, and public pension funds typically report their quarterly portfolio balances shortly thereafter. With the Senate still dithering over federal stimulus aid to state and local governments, after its majority leader suggested that state bankruptcies would be a better solution and that it's all the fault of public pensions, it's time to reality-check...

July 7, 2020
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07Jul

Greece. Main and auxiliary pensions to be paid together

Starting next month, Greek pensioner will be receiving their main and auxiliary pensions at the same time, Labor and Social Security Minister Yiannis Vroutsis told Skai TV on Saturday, adding that more changes to improve the pensions and the social security system are in the pipeline. Besides the simultaneous payment of pensions as of August, Vroutsis said that pensioners with at least 30 years of service will also see an increase to their main pension from September. He added...

July 7, 2020
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07Jul

Canada. Department of Finance Announces Additional Relief Measures Amidst the COVID-19 Pandemic

The Department of Finance announced the release of proposed amendments to the Income Tax Regulations (Canada) that would assist registered pension plan (RPP) administrators and sponsors to manage and maintain their benefit obligations through the COVID-19 pandemic. The temporary relief measures that apply to RPPs are as follows: Extend the deadline to retroactively credit pensionable service: Pursuant to subsection 8308(4) of the Regulations, a member of a defined benefit provision of a pension plan may be permitted the option...

July 7, 2020
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07Jul

The coronavirus crisis is pushing 13 UK universities towards insolvency, study says

Social distancing measures, travel restrictions and lockdowns have tested the ability of universities to survive without students. The institutions at higher risk of collapse are those with a large share of international students and those with significant pension obligations, the IFS said. Thirteen universities, or colleges, in the U.K. are at risk of going bankrupt as the coronavirus pandemic hits their finances and challenges the entire sector, a study by Institute for Fiscal Studies warned Monday. Social distancing...

July 7, 2020
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06Jul

Nigeria. Edo govt spends N25bn on pension, clears arrears with N4.3bn

The Edo State Government has expended over N4.3 billion in clearing the backlog of outstanding pension arrears owed about 3,128 pensioners in the state. The state government also spent N25, 047,472,632.77 in the monthly pension payment of 13,081 pensioners from November 2016 to May 2020. According to a Mid-Year Report by the Edo State Pension Bureau as at 30th June, 2020,“the government spent a total of N771,714,393.01 between November and December 2016 for the payment of pensions;...

July 6, 2020
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