June 2020

29Jun

Changes To Social Security Insurance In China

China has updated their social security insurance policies with some noteworthy changes. Jurisdiction China What's new? 1. Faster social security card application process The State Council and the Ministry of Human Resources and Social Security will facilitate a faster application process for social security cards through the nationwide integrated online government service platform. Read also WeBank, Huawei and KPMG Share Insights on Fighting COVID – 19 with FinTech 2. Merging of Maternity Insurance with Basic Medical Insurance The State Council...

June 29, 2020
News, Slider, , , , ,
Read more...
29Jun

Increasing compulsory superannuation would crush consumer spending

The Grattan Institute has attacked the legislated lift in the superannuation guarantee (SG) to 12%, claiming it would “leave an enormous hole in economic activity”: Legislated plans to increase the rate of compulsory superannuation contributions incrementally to 12 per cent of wages between 2021 and July 2025 would also exacerbate the economic problems caused by COVID-19, and should be abandoned. At least 80 per cent of the cost of higher compulsory super contributions comes at the cost of lower...

June 29, 2020
News, Slider, , , ,
Read more...
26Jun

Financing Africa’s Development: Paths to Sustainable Economic Growth

By Diery Seck This book examines the impact of financing on Africa’s economic development. By exploring various financial instruments including the role of alternative sources of funding like migrant remittances and illicit flows, it analyses the role of financing for Africa’s macroeconomic development and other development indicators such as infrastructure, transport, global trade, industrialisation, social services, external indebtedness and governance. By presenting and examining case studies on various African countries and regions, the respective contributions investigate the capacity...

June 26, 2020
Books, Labor Market, System Sustainability, ,
Read more...
26Jun

Emerging economies and COVID-19 Closing in a world of informal and small companies

By Laura Alfaro, Oscar Becerra, Marcela Eslava Emerging economies are characterized by an extremely high prevalence of informality, smallfirm employment and jobs not fit for working from home. These features factor into how the COVID-19 crisis has affected the economy. We develop a framework that, based on accounting identities and actual data, quantifies potential job and income losses during the crisis and recovery for economies with different economic organization structures. Our analysis incorporates differential exposure of jobs across categories...

June 26, 2020
Articles, System Sustainability, , , , ,
Read more...
26Jun

How People React to Pension Risk

By Nicolas Salamanca, Andries de Grip, Olaf Sleijpen We show that people exposed to greater pension risk are less likely to invest in risky assets. We exploit a reform that links people’s future pension benefits to their pension funds’ funding ratio — a measure of the fund’s financial health — making funding ratios a fund-specific measure of pension risk. The effect of pension risk is stronger for people who are better informed about their pensions, for retirees and...

June 26, 2020
Adequacy, Articles, Savings, ,
Read more...
26Jun

US. DOL Proposal Will Chill ESG Corporate Pension Investing, Advocates Say

Advocates of environmental, social, and governance (ESG) investing have decried the US Department of Labor (DOL)’s newest proposal as poison for sustainable investments in pension plans. Read also 2 Danish pension funds chip into latest European green bond On Tuesday, the DOL proposed a rule that said company defined benefit (DB) retirement plans have a fiduciary duty to beneficiaries, not to social causes advanced through ESG investing that could reduce returns or increase risk. Read also The Mixed...

June 26, 2020
News, Slider, , , , , ,
Read more...
26Jun

UK. Key workers being targeted by pension transfer scammers – APJ

There has been an uptick in the number of key workers being targeted by scammers to transfer their pensions into high-risk self-invested personal pensions (Sipps), APJ Solicitors has said. The law firm revealed that is has been contacted by an increased number of NHS staff and other key workers who have been convinced to transfer their pensions and lose thousands of pounds in the process. It noted that the NHS defined benefit (DB) scheme is “one of the best...

June 26, 2020
News, Slider, , , ,
Read more...
26Jun

2 Danish pension funds chip into latest European green bond

ATP, Hilleroed, Denmark, invested an undisclosed amount in the latest €1 billion ($1.1 billion) climate awareness bond issued by the European Investment Bank, a spokesman for the 889.5 billion Danish kroner ($134 billion) fund confirmed. ATP has invested 26 billion kroner in green bonds to date. The fund does not disclose details about individual issuers, according to the spokesman. The 15-year CAB 2035 is an eligible green investment under the European Union's upcoming green bond standards, taxonomy and sustainability...

June 26, 2020
News, Slider, , ,
Read more...
25Jun

U.K., China entities collaborating on draft China DC plan

The U.K. Foreign and Commonwealth Office and the People's Bank of China are collaborating on a proposal for an auto-enrollment system and a plan design for occupational defined contribution plans in China. Read also UK. Key workers being targeted by pension transfer scammers – APJ The partners' efforts are aimed at improving the share of private-sector workers in China that are covered by occupational plans, which supplement the state retirement system. Currently, about 7% of workers are covered by workplace...

June 25, 2020
News, Slider, , , , ,
Read more...
25Jun

The Mixed Case for Private Equity in Retirement Plans

With the help of regulators and lawmakers, 401(k) plans are trying to become more like the old-fashioned pension plans they replaced. The latest example involves private equity, an illiquid investment that is a staple in pensions and now wants to be in your 401(k). While the addition of shares of privately held companies may boost 401(k) investors’ returns, there are reasons for concern, including high fees and a lack of transparency. Earlier this month, the Labor Department issued guidance...

June 25, 2020
News, Slider,
Read more...