November 2020

13Nov

UK pensions regulator warns on employer insolvency

The trustees of British defined benefit - or final salary - pension schemes must be ready for possible employer distress or insolvency to protect their members as COVID-19 impacts the economy, the country's pensions watchdog said on Thursday. "Trustees are the first line of defence for savers," Mike Birch, director of supervision at The Pensions Regulator said in a statement. "The faster they act, the more options and greater time they'll have to protect members' retirements. Trustees should know...

November 13, 2020
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September 2020

25Sep

Greece. Funded pension plan for more workers

The Labor and Social Security Ministry is examining the idea of granting younger workers – with few years of labor in the current social security system – the option of choosing to join the new funded auxiliary pension system, the very system that new entrants in the labor market must now enter by law. The same option, per the proposals examined at the General Secretariat for Social Security, will also be offered to any groups of workers who have...

September 25, 2020
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08Sep

US. Should Pre-Retirees And Retirees Worry About The Presidential Election’s Impact On Their 401(k)?

It’s understandable if pre-retirees and retirees are nervous about the impact of the upcoming presidential election on their retirement savings, especially if they’re keeping up with the news these days. If they are, they might feel as if they’re being whipsawed between conflicting headlines they’ve read or heard in the media. For example, President Trump claims the stock market will crash if Biden is elected, but not if he himself is reelected. On the other hand, several recent news...

September 8, 2020
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August 2020

27Aug

UK ‘lifeboat’ scheme for company pensions at risk

A former minister has warned that the government’s “lifeboat” scheme for company pensions is at risk from a huge wave of corporate defaults which in extreme circumstances could result in a 10% cut to pensioner incomes. Read also UK. Why we’re largely a nation of ‘no clues’ on pensions The Pension Protection Fund is the “insurance policy” for millions of people in final salary-style company pension schemes, promising to pay out if the employer becomes insolvent. It is funded by...

August 27, 2020
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24Aug

Philippines. Dominguez pushes for reforms in corporate pension system

The Capital Market Development Council chaired by Finance Secretary Carlos Dominguez III is considering reforms in the corporate pension system, including the recommendation by the Fund Managers Association of the Philippines to require the partial or full funding requirement of retirement plans for private sector workers. Dominguez said over the weekend the council consulted the Department of Labor and Employment on FMAP’s recommendation. He said the recommendation would help provide sufficient funds for the pension or retirement plans...

August 24, 2020
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21Aug

Volkswagen Mexico agrees 5.5% hike in worker pay and benefits

Volkswagen’s Mexico unit has agreed an increase in worker pay and benefits of 5.46 percent, the local union for the German automaker said on Tuesday, after the company froze worker salaries in Germany this year due to the coronavirus crisis. Read also US. 27% of Savers Have Decreased or Stopped Retirement Plan Contributions Due to the Coronavirus Manuel Aburto, spokesman for the Independent Union of Automotive Industry Workers, said the deal for a new 2020-21 collective contract comprised a salary...

August 21, 2020
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12Aug

Despite Robust Returns, US Corporate Pension Funding Falls in July

A 39-basis-point drop in the monthly discount rate to a record-low 2.26% canceled out strong asset gains and lowered the funded ratio for the US’s 100 largest corporate pension plans to 81.1% at the end of July from 83.5% a month earlier. Read also US. Public Funds Lead Institutional Investment Rebound According to consulting firm Milliman’s Pension Funding Index (PFI), the funded status of the plans worsened by $68 billion during July, while the deficit jumped to $388 billion as...

August 12, 2020
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12Aug

Thai Airways must pay B5.4bn in pensions

Debt-ridden Thai Airways International (THAI) will have to pay more than 1,600 employees pensions worth 5.4 billion baht over the next 13 years, according to a source at the airline. The revelation came as THAI puts together a debt rehabilitation plan -- which necessitates aggressive cuts to employee salaries and other expenses -- to be submitted to the Central Bankruptcy Court on Aug 17. It has also appointed six members of its board of directors to execute the plan....

August 12, 2020
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July 2020

14Jul

UK. Does benchmarking DB transfers against a workplace pension make sense?

Under new rules to be introduced from 1st October, IFAs who are recommending a transfer out of a DB pension will need to benchmark the proposed destination for the funds against a low-cost workplace pension. But many of these workplace pensions were designed for automatic enrolment and regular contributions by active members rather than large transfers in from Defined Benefit (DB) pension schemes by members approaching retirement. New analysis from consultants LCP based on a survey of master trusts...

July 14, 2020
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June 2020

30Jun

UK. £127bn transferred out of workplace schemes since 2015 – ONS

Around £127bn has been transferred out of UK funded occupational pension schemes since 2015, with £36.9bn-worth of transfers out in 2017 alone, according to figures from the Office for National Statistics (ONS). The government body’s Financial Survey of Pension Schemes found that transfers in to occupational schemes bounced back the following year, rising from £2.2bn in 2017 to £9.6bn in 2018, driven by a sharp rise on transfers into defined contribution (DC) schemes, which made up £3.8bn, or 40...

June 30, 2020
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