July 2020

Financial System Requirements for Successful Pension Reform

By David P. Blake This paper examines the financial system prerequisites needed for the successful delivery of funded private pensions. In particular, it examines the financial instruments and investment strategies required during both the accumulation and decumulation stages. It does so within the context of a specific developed economy with a mature pension system, namely the United Kingdom. The lessons learned can help to inform the debate in developing countries that are in the process of undertaking pension reform....

June 2020

Supreme Court Clears Bankruptcy Restructuring of Puerto Rico Government Pension Plans

On June 1, 2020, the Supreme Court of the United States issued a unanimous decision in Financial Oversight and Management Board for Puerto Rico v. Aurelius Investment, LLC, No. 18–1334, holding that the selection of the members of the Financial and Oversight Management Board for Puerto Rico did not violate the Appointments Clause of the U.S. Constitution. Consequently, the Board’s actions regarding the management and control of the budget and other financial matters of the government of Puerto Rico,...

Bahamas. ‘Baffled’ Over Failure To Reform Public Pensions

The Chamber of Commerce's chief executive says he is "baffled" at the government's failure to reform public sector pensions by making civil servants contribute towards their own retirement costs. Jeffrey Beckles, speaking on a webinar hosted by the Chartered Financial Analyst (CFA) Society of The Bahamas, said: "I can't find a model in the world that has been using the same system where it has proven successful or profitable, and I don't know what causes us to feel that...

Ireland. Warning of cuts to social welfare unless pension age is raised to 67

Cuts to social welfare will be needed if the new government does not push up the pension age to 67 next year. The Department of Employment Affairs and Social Protection has warned that reductions in other social protection payments may be necessary if the pension age stays the same. It said ensuring the pension system is sustainable is vital if current workers are to receive a pension when they reach retirement age in the future. Read more @Independent

India. Modifications in National Pension Scheme financially untenable: Finance Ministry

The Finance Ministry has ruled out proposals by a federation of central and state governments employees seeking modification in the National Pension Scheme, saying its corpus is invested in a prudential manner to ensure optimal returns and suggested that changes will be financially untenable. The response comes following a petition to the Prime Minister''s Office (PMO) by Manjeet Singh Patel, president of Delhi unit of the National Movement for Old Pension Scheme (NMOPS), seeking revival of the old pension...

Japan. Relieve non-regular workers’ anxiety through reform of pension system

By The Japan News Editorial There is great significance in improving the foundation of the quality of life in old age for part-timers and other non-regular workers. Laws related to pension system reform have been passed. The range of people eligible for employee pensions will be expanded to include short-term workers from companies with fewer employees. Read also India. Modifications in National Pension Scheme financially untenable: Finance Ministry Currently, companies are required to join the employee pension program if they meet the...

May 2020

Retirement Reforms: Occupational Strain and Health

By Kantha Dayaram, Alistair McGuire A concurrent increase in the demand for state age pensions and health care has led to reforms in delaying retirement. We employ thirteen waves of longitudinal data to examine the mental and physical health effects of Australian men and women at “early” and “traditional” retirement. We use before and after propensity score matching (PSM) estimates between treatment and control groups of retired and not retired individuals aged 60 and 65 years. The results indicate...

Peru takes another stab at major pension reform as AFP bill forced through

Peru’s government has submitted a bill for urgent consideration that establishes a special commission tasked with proposing ways to improve the country’s private and public pension systems. The commission will look at areas such as sustainability, pension size, coverage and demographics. President Martín Vizcarra (pictured) has previously called for an overhaul. Read also OECD pension chief says reforms must continue, urges crisis policy caution The body will comprise representatives of congress, the executive, the central bank and financial services...

April 2020

OECD pension chief says reforms must continue, urges crisis policy caution

Global pension reform initiatives that got underway prior to the coronavirus outbreak must continue – but implementation needs careful reconsideration. That, along with concerns over the potential long-term impact of pension freedom and contribution relief measures, was among the key points raised during a webinar hosted by industry organisation the International Federations of Pension Funds Administrators (FIAP). Chile – which has a defined-contribution, or private scheme, and a solidarity pillar – is among those that have embarked along the...

OECD pension chief says reforms must continue, urges crisis policy caution

Global pension reform initiatives that got underway prior to the coronavirus outbreak must continue – but implementation needs careful reconsideration. That, along with concerns over the potential long-term impact of pension freedom and contribution relief measures, was among the key points raised during a webinar hosted by industry organisation the International Federations of Pension Funds Administrators (FIAP). Chile – which has a defined-contribution, or private scheme, and a solidarity pillar – is among those that have embarked along the...