Funding Archives - Page 24 of 31 - Pension Policy International

11MayMay 11, 2020

Algeria approves 2-7% increase in retirement pensions

Algeria’s government has approved increases in retirement pensions ranging from 2% to 7%, the labour ministry said on Saturday, despite financial problems facing the oil exporting North African country. The OPEC member’s public finances have come under pressure after a sharp fall in global crude oil prices caused energy earnings, the main source of government revenue, to drop significantly. President Abdelmadjid Tennoune has already announced a 50% cut in public spending and delays to planned projects in several sectors...

May 11, 2020

News, Slider2020, Adequacy, Algeria, Funding

08MayMay 8, 2020

Pareto-improving transition to fully funded pensions under myopia

By Torben M. Andersen, Joydeep Bhattacharya, joydeep Bhattachary, Marias H. Gestsson Under dynamic efficiency, a pay-as-you-go (PAYG) pension scheme is often described as an “original sin”: It helps the current generation of retirees but hurts future generations because they are forced to save via a return-dominated scheme. Abandoning it is deemed welfare-improving but typically not for all generations. But what if agents are present-biased (hence, undersave for retirement) and the “paternalistically motivated forced savings” component of a PAYG scheme...

May 8, 2020

Articles, Pension designFunding, US

08MayMay 8, 2020

Reference-Dependent Preferences, Time Inconsistency, and Unfunded Pensions

By Torben M. Andersen In the real world, public pay-as-you-go pension (PAYG) schemes are popular and co-exist with private, retirement-saving schemes. This is true even in dynamically efficient economies where such pensions offer a lower return. The classic Aaron-Samuelson result argues that, in theory, this is impossible. Later work has shown that it may be possible if agents, left on their own, undersave due to myopia or time-inconsistency. In that case, if the government is paternalistic, a welfare rationale...

May 8, 2020

Articles, Pension design, System Sustainability2020, Funding

06MayMay 6, 2020

UK Corporate Pension Funding Hammered by Pandemic in April

The accounting position of the defined benefit pension plans of the UK’s FTSE 350 companies plummeted in April as it swung from a surplus of £10 billion ($12.4 billion) at the end of March to a deficit of £52 billion at the end of the April due to the impact of the COVID-19 pandemic. Data from consulting firm Mercer’s Pensions Risk Survey shows that liabilities of the UK’s 350 largest listed companies surged by £102 billion to £897 billion at...

May 6, 2020

News2020, Europe, Funding, UK

06MayMay 6, 2020

UK Corporate Pension Funding Hammered by Pandemic in April

The accounting position of the defined benefit pension plans of the UK’s FTSE 350 companies plummeted in April as it swung from a surplus of £10 billion ($12.4 billion) at the end of March to a deficit of £52 billion at the end of the April due to the impact of the COVID-19 pandemic. Data from consulting firm Mercer’s Pensions Risk Survey shows that liabilities of the UK’s 350 largest listed companies surged by £102 billion to £897 billion...

May 6, 2020

News, Slider2020, Coronavirus, COVID-19, Europe, Funding, UK

21AprApril 21, 2020

US Public Pension Funding Levels Plunge to 66% in Q1

The funded level of the 100 largest US public defined benefit pension plans plunged to 66% during the first quarter from 74.9% at the end of last year, according to Milliman. It was the largest quarterly drop in the history of the firm’s public pension funding index (PPFI), and it eliminated the funding level improvements made during 2019. Volatility from the COVID-19 pandemic resulted in net negative cash flow of approximately $24 billion and a $419 billion loss in...

April 21, 2020

News, Slider2020, Coronavirus, COVID-19, Funding, Public Pensions, US

18AprApril 18, 2020

Pension Funding Index April 2020

By Charles J. Clark and Zorast Wadia Milliman analysis: Corporate pensions in March see surprising $93 billion funded status gain from massive surge in discount rates, despite heavy investment losses Milliman 100 PFI funded ratio improves to 85.6% The funded status of the 100 largest corporate defined benefit pension plans rose by $93 billion during March as measured by the Milliman 100 Pension Funding Index (PFI). The funded status deficit improved to $255 billion at the end of March...

April 18, 2020

Books, Investment, Pension Management, Reports2020, Funding

17AprApril 17, 2020

Public pension funds shouldn’t wait for a return to ‘normal’

By Anthony Randazzo The past few weeks have seen America’s leaders wrestle with the human costs of inaction in the face of the COVID-19 pandemic. And in the next few months, state and local leaders will have to step up again and act decisively to avoid the financial effects of this pandemic from creating long-term damage to their public sector retirement systems. Unlike the demographics most vulnerable to succumbing to the physical effects of the virus, those with the biggest cause...

April 17, 2020

News, OP Ed, SliderCoronavirus, COVID-19, Funding, Pension Management, Public Pensions

06AprApril 6, 2020

US. Underfunded public plans facing a new round of woes

The coronavirus has increased pressure on underfunded public pension plans that were already facing significant stress before the crisis. Not only have plans' investment portfolios taken double-digit losses as a result of the pandemic, but government plan sponsors will need to increase their contributions at a time when revenues are down and expenditures are up. Read also US. Some companies are cutting 401(k) matches because of the coronavirus "This has put a lot of strain and stress on pension deficits,...

April 6, 2020

News, Slider2020, Funding, US

03AprApril 3, 2020

The Political (In)Stability of Funded Pension Systems

By Roel M. W. J. Beetsma, Oliwia Komada, Krzysztof Makarski, Joanna Tyrowicz We analyze the political stability of capital funded social security. In particular, using a stylized theoretical framework we study the mechanisms behind governments capturing pension assets in order to lower current taxes. This is followed by an analysis of the analogous mechanisms in a fully-edged overlapping generations model with intra-cohort heterogeneity. Funding is efficient in a Kaldor-Hicks sense. Individuals vote on capturing the accumulated pension assets and...

April 3, 2020

Articles, System Sustainability2020, Defined Benefit, Funding

May 2020

April 2020