February 2022
04Feb

UK. Prudential reports itself to regulator over AVC failings

Prudential is one of the UK’s largest additional voluntary contributions providers for Local Government Pension Scheme funds. Standard Life, Scottish Widows, Aegon, Legal & General and Clerical Medical also process AVCs. LGPS members have two options when it comes to increasing their pension benefits. They may buy an extra pension in the LGPS, and are allowed to make additional contributions to buy up to £7,316 of extra pension, if they are in the main section of the scheme, or they...

February 4, 2022
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04Feb

The many lives of the Bolivian private pension system

Latin American countries have increased the state’s role in pension provision since the mid-2000s. Bolivia has introduced changes in which the state has a bigger role, and this is linked to the reforms promoted by the socialist MAS party. Still, the private system has endured, Leandro N. Carrera (LSE Public Policy Group) and Marina Angelaki (Panteion University) explain. Read also Virus has created different economic system, says Finnish pensions chief Since the 1980s, the region has been at the forefront of...

February 4, 2022
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04Feb

Nigeria: Alleged Pension Fraud – EFCC Closes Case Against Ex-Head of Service, Steve Oronsaye

The Economic and Financial Crimes Commission (EFCC), on Thursday, rested its case in a pension fraud trial involving a former Head of Service of the Federation, Stephen Oronsaye. The anti-graft agency closed its case with the testimony of its 21st prosecution witness. It will now be the turn of Mr Oronsaye and his co-defendants to open their defence to the 49 charges of money laundering involving N2 billion in public funds. EFCC alleged in the charges at the Federal High Court in...

February 4, 2022
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04Feb

US. Public pension plans stay on cost-efficient course – NCPERS

Public retirement systems continued to manage expenses in fiscal 2021, with many also reducing their assumed rates of return, according to an annual study released Wednesday by the National Conference on Public Employee Retirement Systems. In fiscal 2021, the pension systems averaged 54 basis points in administrative costs and investment manager fees, down from 60 basis points the year before. Read also U.S. corporate pension plan funding rises slightly in January – 2 reports Systems lowered their assumed rates of returns to...

February 4, 2022
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04Feb

México. Gasto en pensiones creció 170% en una década

El gasto del gobierno federal en el pago de pensiones y jubilaciones terminó por primera vez desde que hay registros arriba de un billón de pesos en un sólo año; además, en la última década este desembolso se ha disparado 170 por ciento, revelan datos de la Secretaría de Hacienda y Crédito Público (SHCP). Entre enero y diciembre de 2021 los recursos destinados al pago de pensiones de los sectores público y privado ascendieron a un billón 48 mil millones...

February 4, 2022
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04Feb

Fondos de pensiones en Colombia, obligados a apoyar emprendedores por Ley

El Gobierno Nacional está afinando los detalles del decreto mediante el cual piensa reglamentar la ley que obliga a los fondos de pensiones en Colombia a destinar parte de sus recursos a apoyar emprendimientos colombianos o con proyectos productivos. La Ley ya fue aprobada en el Congreso de la República el año pasado y ahora las autoridades económicas está puliendo los detalles que la normativizan. Leer también Fondos de pensiones, principales compradores de TES en Colombia El decreto está próximo a expedirse...

February 4, 2022
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03Feb

Do pensions have real teeth? Evidence from the state government borrowing costs

By Sumit Agarwal, Chunlin Liu, Qiyuan Peng, Qun Wu & Ting Zhang Yes, they do. State governments with risky defined benefit pension plans have higher borrowing costs, as measured by larger bond offering yield spreads. To control for the potential endogenous issue, we utilize the instruments of actuarial firms’ reputation, and direct flight between the state capital and actuarial firm headquarter. We further identify the relation between pension plan investment risks and borrowing costs using two quasi-experimental shocks: the introduction...

February 3, 2022
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03Feb

Target Date Funds and Portfolio Choice in 401(k) Plans

By Olivia S. Mitchell & Stephen P. Utkus Target date funds in corporate retirement plans grew from $5B in 2000 to $734B in 2018, partly because federal regulation sanctioned these as default investments in automatic enrollment plans. We show that adopters delegated pension investment decisions to fund managers selected by plan sponsors. Including these funds in retirement saving menus raised equity shares, boosted bond exposures, curtailed cash/company stock holdings, and reduced idiosyncratic risk. The adoption of low-cost target date funds...

February 3, 2022
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03Feb

U.S. corporate pension plan funding rises slightly in January – 2 reports

The estimated funding ratio of U.S. corporate pension plans inched upward in January as a drop in liabilities offset sluggish investment returns, two new reports from Wilshire Consulting and Legal & General Investment Management America show. Wilshire's monthly report noted that the aggregate funding ratio for U.S. corporate plans increased by 0.4 percentage points to 95.8% as of Jan. 31 from Dec. 31. The slight increase in funding resulted from a 5-percentage-point decrease in liabilities that was partially offset by...

February 3, 2022
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03Feb

UK. Alternatives could give DC pensions higher returns at no extra risk, PPI says

Alternative assets could present defined contribution schemes with a means to increase value for members without taking on any extra risk, the Pensions Policy Institute has found. The PPI's report, published yesterday (February 2), stated DC default funds could better serve the needs of members by expanding the range of asset classes they invest in, putting more focus on better returns and lower volatility. Those who would benefit from an increased focus on returns include those working beyond the state pension...

February 3, 2022
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