December 2024
10Dec

Belgium. Staggering Pension Gap Revealed: Shocking Differences Between Civil Servants and Workers

The ongoing formation of a new federal government in Belgium, led by Bart De Wever, is facing significant challenges. A key issue at the forefront is the pension reform aimed at achieving substantial savings. As Stijn Baert highlighted on ‘De tafel van Gert’, the disparity between public and private sector pensions raises questions. How can this gap be addressed effectively? Fast Answer: Belgium’s pension reform discussions reveal a stark contrast between public and private sector pensions, with civil servants earning significantly more. This...

December 10, 2024
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04Dec

China raises veterans’ pensions for 20th consecutive year

In a move that underscores its commitment to supporting military veterans, China has announced increases to the pensions and living allowances enjoyed by certain retired service members and other eligible recipients. The adjustment marks the 20th consecutive year that China has raised allowances for veterans, reflecting a sustained emphasis on honoring their service, according to the Ministry of Veterans Affairs. China has been working to better protect the rights and interests of the country's ex-servicemen and improve their well-being. In August, China...

December 4, 2024
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November 2024
26Nov

Romania’s Govt. announces 12.1% hike in pensions as of January

Pensions in Romania will increase with the hike in the reference point value (VPR), rising by 12.1%  from RON 81 currently to RON 91 after January 1, 2025, the Ministry of Labor announced on November 20 on its Facebook page. "The 12.1% increase in the VPR is above the inflation rate.  The new Pension Law is a firm guarantee that every pensioner will benefit from a sustainable increase in income," said the minister of labor and social solidarity, Simona Bucura Oprescu,...

November 26, 2024
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22Nov

Public Pension Funding Index November 2024

By Rick Gordon & Rebecca A. Sielman October 2024 broke the five-month positive investment return streak for public pensions, prompting a decrease in the estimated funded status of the 100 largest U.S. public pension plans from 82.8% as of September 30, 2024, to 81.2% as of October 31, 2024, as measured by the Milliman 100 Public Pension Funding Index (PPFI). We estimate a calendar year-to-date investment return of 7.6% through the end of October. We have projected the aggregate funded status forward from October...

November 22, 2024
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22Nov

US. Public pension funding ratios drop in October, first dip since April — Milliman

The overall estimated funding ratio of the 100 largest U.S. public pension plans fell in October, the first such decline since April, according to the Milliman 100 Public Pension Funding index. The drop in the funding ratio to 81.2% as of Oct. 31 from the estimate of 82.8% as of Sept. 30 was primarily the result of negative investment returns. It was the first decline after five straight months of increases due to strong market returns. Before that streak had begin,...

November 22, 2024
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14Nov

Brazil. Military pensions post largest deficit among retirement systems

The segment is also the one with the most retirement benefits, according to a TCU report Targeted by the fiscal reforms under consideration by the government, Brazil’s military pension system (SPSMFA) recorded a deficit of R$49.73 billion last year, placing it as less sustainable than the General Social Security System (RGPS) and generating a per capita deficit 17 times higher. This data appears in a separate report by Walton Alencar of the Federal Court of Accounts (TCU), presented during the review...

November 14, 2024
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13Nov

Australia. Government urged to transform Disability Support Pension after its ‘lacklustre’ response to Senate report

A coalition of disability and social services groups has called for further reform of the Disability Support Pension (DSP) and condemned the federal government for its official response to a Senate inquiry into the payment. In 2021, a months-long Senate inquiry into the purpose, intent and adequacy of the DSP received 134 submissions and held four public sessions. The inquiry reported early the following year while the Morrison government was still in power, and heard "overwhelming evidence" the DSP was inadequate and that...

November 13, 2024
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08Nov

A ‘Mandatory’ Pension Scheme? Late-Stage Dropouts from the National Pension System in South Korea

By Jongseok Oh, Seho Son & Kun Lee In this study, we investigate the patterns of individuals dropping out of the National Pension System, a mandatory public pension scheme in South Korea with a generous and redistributive benefit structure. We analyze administrative pension insurance data on individuals eligible for a lump-sum refund of lifetime accrued contributions at the age of 60 due to insufficient contribution records. We employ a set of linear probability models with region-fixed effects and within-between-region effects...

November 8, 2024
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October 2024
29Oct

Malta. Government to enroll its workers in pension schemes, match contributions

The government is to launch a voluntary occupational pensions scheme and will match contributions made by public sector workers, Finance Minister Clyde Caruana announced in his budget speech on Monday. The initiative aims to expand pension savings options for employees by encouraging both public and private sector workers to participate. "While employers will not be obliged to contribute, they must offer their employees the opportunity to join such a plan.  It is up to the employee to decline this option," the...

October 29, 2024
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18Oct

SEC Investigations of Public Pensions

By Kangkang Zhang In recent years, the looming threat of substantial unfunded liabilities and the obligation to meet these financial commitments have become critical issues for numerous state pension plans, prompting concerns about their solvency and management. This study examines the effect on public pension plans of investigations by the U.S. Securities and Exchange Commission (SEC). Utilizing a stacked cohort difference-in-differences design, I observe that state pensions tend to improve investment performance when subjected to SEC investigation. The observed effect...

October 18, 2024
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