June 2024
12Jun

South Africa. Two Pot Retirement System

What is a two-pot retirement? The two-pot retirement system is a reform that will allow retirement fund members to make partial withdrawals from their retirement funds before retirement, while preserving a portion that can only be accessed at retirement to help improve retirement outcomes. This means members need not resign to access part of their retirement benefit if they are in financial distress. This reform will come into effect on 1 September 2024. Who is it meant for? The new system will...

June 12, 2024
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07Jun

Protection of EU Consumers Vis – À – Vis Pension Products: the Dutch Case: Towards a New Regime

By Hans van Meerten The book is an extensive examination of the intersection between EU consumer protection laws and the Dutch pension system, particularly in light of the transition to a new pension regime. It contains lessons for a new EU consumer regime vs pension products. The Dutch reform is taken a a case study. The document advocates for a comprehensive review of the Dutch pension system and its alignment with EU consumer protection laws. It suggests that while the Dutch pension...

June 7, 2024
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03Jun

Discussions on Japan pension reform must respond to anxiety about future

Deliberations on Japan's pension reform in 2025 are in full swing at a council of the Ministry of Health, Labor and Welfare. The future vision of the country's public pensions that support people's lives in their old age is being called into question. The public pension system consists of a two-tier structure -- the national pension and employees' pension, with the latter covering company workers and others. The national pension is the basic portion that is common to all people,...

June 3, 2024
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May 2024
31May

Switzerland: Social security changes come into force, with implications for pension plans

Employer Action Code: Act Switzerland’s AHV/AVS 21 law, which was approved by parliament and then passed by public referendum in 2022, took effect January 1, 2024. Among other things, the law will increase the age for normal retirement (now called the “reference age”) for women under the social security AHV/AVS[1] retirement program as well as for pension plans that provide the mandatory BVG/LPP[2] retirement benefits. Key details The reference age for women (currently age 64) under the AHV/AVS and under BVG/LPP pension...

May 31, 2024
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16May

Swiss to vote on pension reform and biodiversity in September

A referendum against a reform of the so-called second pillar of the Swiss pension system, launched at the end of March 2023 by leftwing parties and unions, collected over 141,000 signatures, almost three times more than necessary. The reform provides for a reduction in the pension conversion rate from 6.8% to 6%, which is necessary due to rising life expectancy. The capital built up in an occupational pension scheme during professional activity is set to result in a smaller annuity. +...

May 16, 2024
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15May

Pension Reform in Lebanon: Good Intentions, Uncertain Outcomes

By Haneen Sayed, David Robalino, Ibrahim Muhanna   The passing of Pension Law 319 by Lebanon’s Parliament in December 2023 was a milestone. For decades, the vast majority of the Lebanese people have lived with little or no income security in their old age, a situation that has worsened since the economic-financial crisis that began in 2019. Approximately 80 percent of the Lebanese population has no formal pension coverage, which forces elderly people to rely on family or other types of informal support. Rapid...

May 15, 2024
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13May

Swiss pension reform: the latest changes

These are the most important changes since January 1, 2024: – Expansion of the flexibility of pension payments – Incentives for gainful employment after 65 – Raising the retirement age (now called the reference age) for women to 65 (from January 1, 2025) On September 25, 2022, the Swiss electorate approved the reform package to stabilise the pension scheme. This aims to secure and maintain the level of old-age pensions, ensure the financial balance of the system over the next decade and meet...

May 13, 2024
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April 2024
30Apr

Czechs approve raising retirement age to help future budgets

The Czech government approved changes to the country's pension system on Tuesday, raising retirement ages and lowering pensions for future retirees as it aims to save the system billions of dollars per year. The reform builds in gradual shifts in the retirement age, delaying retirement by seven months for people who are now 52, compared to the current retirement age of 65, according to plans. It also lowers pensions calculated for future retirees by about 8% compared with the current...

April 30, 2024
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29Apr

Czech Republic. Government to debate proposed pension reform next week

The government is set to discuss proposed changes to the pension system on Tuesday. The proposal envisages a gradual increase in the retirement age linked to a higher life expectancy, a different basis for calculating old-age pensions, a lower indexation of pensions and a minimum pension amounting to 20 percent of the average wage. Most of the changes would affect people born after 1966. The present retirement age is 65 for both men and women. According to Labour Minister Marian...

April 29, 2024
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26Apr

Economic Consequences of Pension Bailouts: Evidence from the American Rescue Plan

By Michael Dambra, Phillip J. Quinn & John Wertz Multiemployer pension plans (MEPPs) provide retirement benefits for 11 million participants, yet until recently, hundreds of these pension plans – covering 3 million participants – faced insolvency. We use the 2021 passage of the American Rescue Plan Act to examine how pension bailouts affect the management and administration of pension plans. Consistent with the ARP inducing moral hazard, we find that MEPPs increase risk taking in investment allocations, increase benefit payments,...

April 26, 2024
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