June 2024
07Jun

US. New Issue Brief: Time to Fix Underfunding of Public-Sector Pensions

Public-sector pensions are facing a significant underfunding crisis that has only worsened over the past 25 years despite periods of high-asset returns. This growing burden threatens the financial stability of municipal and state finances, potentially leading to higher taxes or severe cuts to retirees’ benefits and essential services if not addressed promptly. In a new Manhattan Institute issue brief, senior fellow Allison Schrager argues the current high-interest rate environment presents a unique opportunity to set public-sector pensions on a more sustainable path. Improper pension...

June 7, 2024
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May 2024
24May

Most Australians still relying on government pension on retirement

A government pension or allowance was still the main source of personal income at retirement according to the latest statistics from the Australia Bureau of Statistics. Forty-three per cent of retirees relied on a government pension, with 27 per cent relying on superannuation, an annuity or private pension. Bjorn Jarvis, ABS head of labour statistics, said over the past decade the number of people who said they had no personal income has fallen from 25 per cent in 2012-13 down to...

May 24, 2024
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22May

Nigeria. Retired police officers protest unpaid pension in Abuja

RETIRED police officers in Nigeria under the contributory pension scheme, on Tuesday, May 21, expressed their displeasure over several months of unpaid pensions. The retired officers stormed the National Assembly in Abuja, to protest the “severe hardships” they had faced due to the alleged failure of the National Pension Commission (PENCOM) to pay their entitlements. The retirees representing various state chapters called on the federal government to remove them from the Contributory Pension Scheme. The retirees, seen with various placards, lamented being...

May 22, 2024
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17May

Female Labor Supply and Rural Pension Eligibility in Brazil

By Gaurav Khanna, Margaret Lay, Stephanie Lee & Benjamin Thompson In 1991, Brazil expanded its rural old-age pension to cover millions of previously uncovered women, conditional on work requirements.  We use a difference-in-differences approach to show that this expansion drastically increased women’s employment by nine percentage points, or 26 percent.  This increase in labor force participation occurred among women who were immediately age-eligible, and among younger cohorts that would be eligible in the future. These results illuminate the capacity of...

May 17, 2024
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17May

How Hidden Costs Undermine Public Pensions in the US

 By Richard Ennis Public pension plans in the US incur exorbitant asset management costs. Most spend a lot and get nothing for it. High cost has hindered efforts to realize their actuarial return requirement. It has resulted in poor performance pretty much across the board. And yet, very few plans provide a full accounting of the costs they incur. Some still fail to net all their investment expenses from the returns they report. High cost is the Achilles heel of...

May 17, 2024
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13May

US. The Myth That Public Workers Don’t Care About Pensions

Although some may argue that pensions are no longer a relevant tool for recruiting and retaining public workers, the historical data and broader research show otherwise. However, with financial literacy being a significant challenge in the United States, it is critical that employers provide the necessary education around these benefits to maximize their potential in the battle to attract and keep talent. As pensions have become less common in the private sector, they have increasingly become a highly coveted benefit for current...

May 13, 2024
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10May

Policy Ideas for Boosting Defined Benefit Pensions In The Private Sector

By Dan Doonan, John Lowell, Jonathan Price, Michael Kreps, Tyler Bond & Zorast Wadia In response to a request for information issued by the U.S. Senate Health, Education, Labor, and Pensions (HELP) Committee, the National Institute on Retirement Security has submitted a research issue brief with policy ideas to help expand defined benefit (DB) pension coverage for private-sector employees. The research brief, Policy Ideas for Boosting Defined Benefit Pensions In The Private Sector, details six options  for Congress to consider to...

May 10, 2024
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10May

US. Public Retirement Systems Need Policies for Navigating Volatile Financial Markets

Over the past decade, policy reforms and increased financial contributions have dramatically improved the cash flow situation of some of the nation’s most troubled state pension plans. Thanks to these changes, no state was at risk of pension insolvency as of fiscal year 2021. Yet for some states, these improvements won’t be enough to provide their pension systems—and the public employees and retirees who rely on them—with long-term stability. In 2021, once-in-a-generation investment returns raised state pension funding to levels...

May 10, 2024
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April 2024
24Apr

Ghana. Public sector workers to strike May 2 over pensions

The Forum for Public Sector Associations and Unions has hinted at plans to stage a nationwide strike if government fails to resolve all issues bordering on the implementation of pensions for public sector workers. The Forum, in a notice, revealed its members will embark on a strike from Thursday, 2 May 2024, if by Tuesday, 30 April, issues relating to the implementation of pensions for public sector workers remain unresolved. “Notice is hereby served,” the Forum indicated. The Forum is made up...

April 24, 2024
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04Apr

Nigeria. Abia State Government to Introduce Contributory Pension Scheme for Civil Servants

The Abia State Government, under the leadership of Governor Otti, has announced plans to implement a Pension Contributory Scheme for its civil servants. Mr. Okey Kanu, the Commissioner for Information and Culture, made this revelation during a press briefing following the State Executive Meeting held at the Government House, Umuahia, on Tuesday. According to Kanu, the state government has made significant progress in preparing for the transition to the new pension scheme. He stated, “The state government has concluded plans to...

April 4, 2024
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