April 2020

08Apr

COVID 19: Emerging Investment Risks for Pension Schemes

Daily policy initiatives by governments across the world who are desperate to avoid the worst ravages of an economic recession are fuelling a lot of the volatility in public markets with which investors are now sadly familiar. However, many pension funds have significant private market exposures through alternative investments. Those holdings are not immune to government intervention and pension funds should note the sometimes unexpected effect of policy changes. The Pensions Regulator’s COVID 19 guidance on 27 March advised...

April 8, 2020
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07Apr

Social protection responses to the COVID-19 lockdown in South Africa

Poor and vulnerable South Africans, including domestic, farm, service sector, and self-employed workers as well as children from poor families, face a double shock. COVID-19 is a major health risk that has already claimed tens of thousands of lives worldwide and is starting to claim lives in South Africa. Social distancing and self-isolation are necessary to slow the spread of the virus, and the 21-day lockdown is designed to “flatten the curve”. But the lockdown itself has consequences that...

April 7, 2020
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07Apr

Irish Demand for Social Benefits Soars as Coronavirus Bites

The number of people in Ireland dependent on social welfare income support amidst the coronavirus outbreak has soared to more than 700,000 based on numbers released on Monday by the Department of Employment Affairs and Social Protection. On April 3, 507,000 people were paid the COVID-19 Pandemic Unemployment Support payment, which is a weekly stipend of 350 euros ($377.93) for those who have lost jobs or had hours cut due to coronavirus disruption. That was in addition to 207,000...

April 7, 2020
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07Apr

Freezing A Defined Benefit Plan To Reduce Current Year Contribution Obligation

Defined benefit pension plans, including cash balance plans, require a contribution each year, which is primarily used to fund the benefits which participants accrue (i.e., earn) during the plan year. The annual required contribution may also include an amount needed to make up a shortfall in a prior year in the investment return on plan assets. In most defined benefit pension plans, a participant earns a benefit for a plan year after working 1,000 or more hours during that...

April 7, 2020
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06Apr

Cobertura PPI: Los efectos del Coronavirus en las pensiones

Lecciones y desafíos de la pandemia por COVID-19 para las encuestas de hogares en América Latina19/07/22  Como consecuencia de las restricciones de movilidad destinadas a contener los contagios por COVID-19, varias oficinas nacionales de estadística (ONE) suspendieron la recolección de datos de las encuestas de hogares y enfrentaron desafíos para continuar con la publicación de los indicadores provenientes de este tipo de operaciones estadísticas.  Informalidad laboral y Covid-19: vulnerabilidad o flexibilidad05/07/22 A finales de abril de 2020 el número de...

April 6, 2020
Noticias, Uncategorized,
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06Apr

PPI Coverage: Coronavirus’s effects on pensions

No Country for Old Men (or Women): The Impact of Migration on Pension Funding Adequacy and Sustainability 10/09/2022 Retirement security is of paramount importance to working people. Adequate retirement income is also a leading concern for private and public pension systems. Changes in Retirement Savings During the COVID Pandemic19/08/2022 This paper documents changes in retirement saving patterns at the onset of the COVID-19 pandemic. COVID-19 Private Pension Withdrawals and Unemployment Tenures 08/07/2022 This is the first study to evaluate the...

April 6, 2020
Investing, Investment, News, Slider-Left, Uncategorized,
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03Apr

UK. L&G completes £261mn of pension risk transfer deals in March

UK insurer Legal & General Group plc (L&G) has revealed that its Pension Risk Transfer (PRT) division completed eight transactions over the past month, securing a combined £261 million of pensioners’ benefits during uncertain times. The eight transactions cover UK and U.S. pension schemes and varied in size from as low as £2.2 million to as high as £80 million. L&G notes that on March 27th alone, three separate PRT transactions were signed. Despite the impacts of the ongoing...

April 3, 2020
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03Apr

US. Highlights of Employee Benefits Provisions in the CARES Act

The President recently signed into law the Coronavirus Aid, Relief, and Economic Security Act or “CARES Act.” The CARES Act is primarily a stimulus package that addresses the current coronavirus crisis, and it includes several provisions relating to employee benefit plans. Retirement Plans Penalty-free coronavirus-related distributions — The 10% early withdrawal penalty under Internal Revenue Code (Code) Section 72(t) is waived for “coronavirus-related distributions” of up to $100,000. In addition, the 20% withholding requirement on these distributions does not...

April 3, 2020
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02Apr

Dutch pension funds invest in coronavirus bond

Dutch pension funds invested a total €36 million ($38 million) in a new bond aimed at combating the coronavirus pandemic. Pension funds managed by APG and PGGM have invested in the Nordic Investment Bank's €1 billion Response Bond, which matures in April 2023. Proceeds of the bond will finance projects that help to alleviate the social and economic effects of the coronavirus pandemic in NIB's eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. APG has...

April 2, 2020
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02Apr

Useless Retirement Advice And Bad Government Policy In The Time Of COVID-19

By Teresa Ghilarducci The COVID-19 Recession is going to wreak havoc on older workers’ financial future. I am sure it will affect younger people, too, but I'm focusing on the people 50 and up, who will be less likely to get a second chance. Older workers right now face three risks: the risk of working in frontline occupations without sick leave and protective equipment and becoming disabled or worse; the risk of being laid off; and the risk that their carefully...

April 2, 2020
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