July 2020

16Jul

UK. Govt’s ‘landmark’ pensions bill proceeds to Commons

The Pension Schemes Bill, which includes rules for pension dashboards and new powers for the Pensions Regulator, has cleared its first hurdle in the House of Lords. Read also UK. Does benchmarking DB transfers against a workplace pension make sense? The bill, originally announced in the October Queen’s Speech, will now pass into the House of Commons where MPs will debate its measures before it receives Royal Assent and is written into law. Read also UK. Proposed Legislation for Losses...

July 16, 2020
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16Jul

FLF Africa launches Financial Literacy for Coronavirus Alleviation programme

The Financial Literacy Foundation Africa has launched a Financial Literacy for Coronavirus Alleviation programme (FLICA) which aims to provide education on how to handle economic and financial hardships arising from the Covid-19 pandemic. This continental project will take place in all 46 countries in sub-Saharan Africa and aims to achieve financial independence for eight out of every ten individuals by 2030. “The strategic approach will address attitudinal and behavioral barriers to our goal of financial wellness through public education...

July 16, 2020
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15Jul

US. Post-pandemic Retirement: Can We Build More Resilient Systems?

Reforming retirement systems is a more urgent imperative globally as the coronavirus pandemic claims jobs, lowers economic growth and investment returns, and threatens to choke funding for already underfunded pension plans. The pandemic is also hastening the imminent insolvency of the Social Security Trust Fund in the U.S., a recent report by the Penn Wharton Budget Model has found. In two recession scenarios the report laid out, the trust fund would run out of money in 2032 or 2034...

July 15, 2020
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14Jul

China. Beijing raises retirement pensions

Beijing released a scheme to adjust basic pension for retirees, increasing 50 yuan ($7.13) per month for each person, according to the Beijing Municipal Human Resources and Social Security Bureau on Tuesday. The new scheme, which starts on Wednesday is expected to benefit nearly 3.97 million Beijing residents, including retirees of Beijing enterprises, government bodies and institutions. Wu Xiaojun, deputy director of the Beijing Municipal Human Resources and Social Security Bureau, said the adjustment of the basic pension will...

July 14, 2020
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13Jul

Australia. Low income earners get further support

Millions of Australians on pensions and low incomes are about to get cash hits from the government, which it hopes will give another boost to the coronavirus-hit economy. The second round of $750 payments for pensioners, veterans and carers will start going into people's bank accounts from Monday. It goes to about five million Australians at a cost of $3.8 billion. Treasurer Josh Frydenberg anticipates many will spend the money on everyday expenses like groceries, rent and bills. "This...

July 13, 2020
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13Jul

US. Public pension funds in an era of low rates and COVID-19

What is the most prudent strategy for state and local governments confronting low returns on pension investments, aging workforces, and pressure to build portfolios large enough to cover promised future benefits at the same time that these governments face other pressing demands? Presentations at the 2020 Municipal Finance Conference provide contrasting answers to this question. Louise Sheiner and Finn Schuele of the Hutchins Center at Brookings with co-authors Byron Lutz of the Federal Reserve Board and...

July 13, 2020
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09Jul

Trump’s Plan to Block Pensions From ESG Won’t Help Fossil Fuels

The U.S. Department of Labor is concerned that America’s pension fund managers don’t know what they’re doing. Read also US. Public Pensions and the COVID-19 Fiscal Dilemma That’s the rationale, at least, for the department’s newly proposed rule restricting the use of environmental, social, and governance considerations in investment decision-making. The language reaffirms the standard interpretation of fiduciary guidelines that only financial risks and returns can be considered in the management of U.S. employer-provided pension funds; “non-pecuniary goals,” for...

July 9, 2020
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09Jul

PRTs could help plug UK infrastructure ‘mega-gap’ – L&G

Insurers and other pension risk transfer (PRT) providers are "ready" to invest up to £190bn of pension money into UK infrastructure over the next decade, analysis by Legal & General (L&G) has found. This would plug almost a fifth of the UK’s infrastructure funding “mega-gap”, which, according to the firm, is likely to be as much as £1trn as regions across the UK "call out for greater investment to support our society’s needs”. The report, The power of pensions:...

July 9, 2020
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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

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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