June 2020

26Jun

UK. Key workers being targeted by pension transfer scammers – APJ

There has been an uptick in the number of key workers being targeted by scammers to transfer their pensions into high-risk self-invested personal pensions (Sipps), APJ Solicitors has said. The law firm revealed that is has been contacted by an increased number of NHS staff and other key workers who have been convinced to transfer their pensions and lose thousands of pounds in the process. It noted that the NHS defined benefit (DB) scheme is “one of the best...

June 26, 2020
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24Jun

US. New Labor Department rule reinforces pension funds’ fiduciary duties.

The Labor Department proposed a rule Tuesday that will govern how the $10.7 trillion invested in private pension plans should be managed in light of the push to consider the environment, social factors and corporate governance, or ESG, when making investment decisions. According to Morningstar, from 2018-19 flows into “sustainable” funds increased nearly fourfold, and the number of conventional funds claiming to consider ESG factors rose to 564 from 81. More than 3,100 institutional investors and businesses that provide...

June 24, 2020
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23Jun

European Parliament Approves CRR “Quick Fix” to Mitigate Economic Consequences of COVID-19

The measures grant relief for EU banks to enhance bank lending to companies and households. Read also Pension funds expect more focused passive approach On 18 June 2020, the European Parliament approved the so-called CRR “quick fix” to Regulation (EU) 575/2013 (Capital Requirement Regulation (CRR)) and Regulation 2019/876 (Capital Requirement Regulation 2 (CRR2)) to mitigate the economic consequences of COVID-19. The temporary measures are, inter alia, intended to enhance credit flows to companies and households, thereby supporting the EU’s economy....

June 23, 2020
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22Jun

UK. TPR urged to nudge savers back into pensions

Employees who have opted out of their workplace pension during the coronavirus crisis should be encouraged back into saving more quickly than usual, MPs have said. Read also UK. Key workers being targeted by pension transfer scammers – APJ The Work and Pensions committee urged the Pensions Regulator (TPR) to consider helping such workers re-enrol sooner than the current three-year timeframe under auto-enrolment rules. Read also India. Govt may restrict foreign investment in pension funds The committee believes this is important...

June 22, 2020
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22Jun

India. Govt may restrict foreign investment in pension funds

Amid LAC tension, the Finance Ministry has proposed restrictions on pension fund investments from any bordering country. Foreign investment in pension funds regulated by the Pension Fund Regulatory and Development Authority is capped at 49 per cent under the automatic route. According to a draft notification circulated for comments on Friday, “A government approval would be required for the investing entity or individual from any of the bordering countries, including China.” The restriction will be applicable from the date...

June 22, 2020
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19Jun

UK. Coronavirus: Why the pension triple lock is back in the spotlight

At present, the state pension increases each year in line with the rising cost of living seen in the CPI measure of inflation, increasing average wages, or 2.5%, whichever of those three is highest. This is known as the triple lock, and it is a Conservative manifesto pledge for the five years of this Parliament. However, the technical aspects of state-paid wages during the coronavirus outbreak could lead to a big rise in the state pension if the government...

June 19, 2020
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18Jun

Boris Johnson Has ‘No Plans’ to Scrap Key U.K. Pension Pledge

British Prime Minister Boris Johnson has “no plans” to abolish a politically sensitive election pledge he made to the U.K.’s pensioners, despite fears among government officials that the policy could be at risk in the pandemic fallout. Officials are aware that the pensions “triple lock,” promised by the last three Conservative prime ministers as a guarantee that retirement incomes will keep rising, may have to be reviewed, a person familiar with the matter said. Johnson’s spokesman played down the...

June 18, 2020
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18Jun

Japan Mulls Resubmitting Legislation to Raise Retirement Age of Civil Servants

Japanese Prime Minister Shinzo Abe's government will consider resubmitting legislation to raise the retirement age for civil servants, its top spokesman said on Wednesday, after public backlash prompted the withdrawal of draft legislation. During the parliamentary session that ended on Wednesday, the government abandoned its push to enact legislation that would raise prosecutors' retirement age to 65 from 63, and let the cabinet defer retirement of senior prosecutors for a further three years. Critics and others argued it would...

June 18, 2020
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17Jun

UK. Pensions triple lock at risk from Covid-19 fallout

Rishi Sunak is preparing to break the Conservative party’s “triple lock” state pension pledge, amid Treasury fears that the policy could soon become unaffordable because of the fallout from the coronavirus crisis. The UK chancellor’s willingness to break a 2019 Tory manifesto commitment is a sign of how the Covid-19 pandemic is forcing the government to confront political taboos. Mr Sunak has been warned that unless he breaks the pledge next year, the value of the state pension could...

June 17, 2020
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16Jun

Publication of EIOPA’s Annual Report 2019

Today, the European Insurance and Occupational Pensions Authority (EIOPA) published its 2019 Annual Report, setting out its activities and achievements of the past year. Throughout the course of the year, EIOPA continued to play an essential role in the supervision of insurance and pensions in Europe, working closely with national supervisory authorities, European institutions and other stakeholders to fulfil its strategic objectives set out in its annual work programme. EIOPA significantly strengthened its work on conduct of business supervision. EIOPA...

June 16, 2020
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