Author: Mary Pat Campbell

China says working on plan to raise retirement age

Mary Pat Campbell

Link: http://global.chinadaily.com.cn/a/202102/26/WS6038c7efa31024ad0baab6c7.html

Excerpt:

You said raising the retirement age in a gradual manner is a major decision made upon China’s overall economic and social development, which will improve the use of China’s human resources, enhance the sustainability of the social insurance system and ensure basic living of the people.

Currently, in China, the retirement age for men is 60, while for women it is 55 for white-collar workers and 50 for blue-collar employees.

With great social and economic progress taking place in China, the retirement age, which was set in the 1950s, is relatively low, according to You, who cited longer average life expectancy as well as changes in demographic structure and the supply and demand of labor.

Publication Date: 26 February 2021

Publication Site: China Daily

Stalin Sees Poll Motive In TN CM Raising Retirement Age; Mum On DMK-Congress Seat-sharing

Mary Pat Campbell

Link: https://www.republicworld.com/india-news/politics/stalin-sees-poll-motive-in-tn-cm-raising-retirement-age-mum-on-dmk-congress-seat-sharing.html

Excerpt:

DMK president MK Stalin on Thursday hit out at Tamil Nadu Chief Minister K Palaniswami for raising the retirement age of government employees to 60 years, saying the announcement was made with an eye on the forthcoming assembly elections in the state. Though increasing the retirement age of state government employees was welcome, it appears that the announcement was made with the elections in mind, Stalin alleged.

….

“Raising the retirement age is welcome, albeit the announcement made for the election,” the DMK leader said in a Facebook post on Thursday. He said the Chief Minister should have fixed the age criteria of 60 years when he had increased the retirement age to 59 from 58 years in May last year.

Publication Date: 26 February 2021

Publication Site: RepublicWorld.com

Raising of retirement age flayed

Mary Pat Campbell

Link: https://www.thehindu.com/news/cities/Tiruchirapalli/raising-of-retirement-age-flayed/article33934131.ece

Excerpt:

The upward revision of retirement age for State government employees will affect opportunities for younger generation in getting employment in government departments, said K. Balakrishnan, state secretary, CPI (M) on Thursday.

Addressing journalists in Thanjavur, he said the State government, which was struggling to settle the retirement benefits of the State Transport Corporation employees, had announced that the retirement age for government employees would be increased to 60 years. This was nothing but an attempt to evade its responsibility of shouldering the financial burden of settling the retirement benefits of those due to retire from government service during this year.

Publication Date: 25 February 2021

Publication Site: The Hindu

Murphy will think about extending retirement age for judges

Mary Pat Campbell
Murphy will think about extending retirement age for judges

Excerpt:

Gov. Phil Murphy said he will think about increasing the mandatory retirement age of New Jersey judges beyond the age of 70.

“You do have the reality.  You’ve got a 78-year-old president who succeeded a 74-year-old president, so this is not a blip anymore,” Murphy said in response to an inquiry from the New Jersey Globe on Friday.

When New Jersey approved a new State Constitution in 1947 that forced judges to retire at 70, the average life expectancy of men in the United States – there was only one woman on the bench at the time, Libby Bernstein Sachar in Union County – was 62.

Author(s): David Wildstein

Publication Date: 26 February 2021

Publication Site: New Jersey Globe

Retirement age raised with eye on poll: Stalin

Mary Pat Campbell

Link: https://www.thehindu.com/news/national/tamil-nadu/retirement-age-raised-with-eye-on-poll-stalin/article33936796.ece

Excerpt:

DMK president M.K. Stalin on Thursday said Chief Minister Edappadi K. Palaniswami had increased the retirement age of the State government employees with an eye on the Assembly election.

In a statement in Chennai, he said although it was welcome, the decision could have been taken last year when the retirement age was raised to 59.

Publication Date: 26 February 2021

Publication Site: The Hindu

Wall Street Lobbies to Bring More ESG Funds Into 401(k)s

Mary Pat Campbell

Link: https://www.wsj.com/articles/wall-street-lobbies-to-bring-more-esg-funds-into-401-k-s-11614767400?mod=djemwhatsnews

Excerpt:

Money managers are lobbying to scrap a Trump-era rule that makes it difficult for 401(k) plans to invest in socially focused funds.

The Labor Department rule, announced in October, imposed restrictions on what can and can’t be offered as company 401(k) funds. One result is that plans can’t use funds with nonfinancial goals as default investments for employees.

That means 401(k) overseers and managers need to show that environmental, social and governance strategies can boost financial returns—a challenge for the nascent industry. ESG-focused funds are a growing profit center for asset managers.

Lobbyists representing managers, pensions and retirees began making calls to the Biden transition team in the weeks after the rule was announced. Some lobbyists urged the incoming administration to agree not to enforce the rule and place it under review, said people familiar with the matter.

Author(s): Dawn Lim

Publication Date: 2 March 2021

Publication Site: Wall Street Journal

Florida pension revamp would push public workers into 401(k)-type investment plan

Mary Pat Campbell

Link: https://www.thecentersquare.com/florida/florida-pension-revamp-would-push-public-workers-into-401-k–type-investment-plan/article_e9cfb564-7b87-11eb-a9b5-cfb50af7e2ac.html

Excerpt:

Senate Bill 84, filed by Sen. Ray Rodrigues, R-Estero, would require new public employees enroll in a 401(k)-type investment plan rather than in the Florida Retirement System (FRS), the nation’s fourth-largest public pension plan that serves about 5.1 million Floridians, including 4.425 million retirees.

According to SB 84’s legislative analysis, the 51-year-old FRS carries $36 billion in “unfunded liabilities,” the gap between assets and obligations, an exposure critics insist put the state at risk.

The bill offers an “investment plan” as an option to more than 644,000 active employees, 432,258 annuity recipients, 15,512 disabled retirees and 33,593 enrolled in the Deferred Retirement Option Program (DROP).

Author(s): John Haughey

Publication Date: 2 March 2021

Publication Site: The Center Square

HIDDEN PENSION ‘TAX’ COSTS EACH ILLINOISAN MORE THAN $1,400 PER YEAR

Mary Pat Campbell

Link: https://www.illinoispolicy.org/hidden-pension-tax-costs-each-illinoisan-more-than-1400-per-year/

Graphic:

Excerpt:

Despite the record increase in pension expenditures in the past several decades, Illinois’ pension system remains the nation’s worst by multiple measures. According to Moody’s Investors Service, Illinois’ pension debt was equal to 500% of the state’s revenues in fiscal year 2018 and almost 30% of the entire state economy, both the highest rates in the nation. At the same time, Illinois’ credit rating has been in precipitous decline and now sits at the lowest credit rating in the nation.

As pension debt continues to increase, so do required pension contributions. Pension contributions now consume 26.5% of the state’s general funds budget, up from less than 4% during the years 1990 through 1997.

Author(s): Orphe Divounguy, Bryce Hill

Publication Date: 2 March 2021

Publication Site: Illinois Policy Institute

Funded status of largest U.S. pension plans climbs in 2020

Mary Pat Campbell

Link: https://www.pionline.com/pension-funds/funded-status-largest-us-pension-plans-climbs-2020

Excerpt:

The average funding ratio of 19 U.S. publicly listed corporations with more than $20 billion in global pension fund liabilities totaled 86.2% at the end of 2020, up from 84.9% at the start of the year, according to a report from Russell Investments.

Strong investment returns offset a decrease in the discount rate of more than 70 basis points that brought the total liabilities of the club to more than $1 trillion for the first time, said the report released Tuesday.

Assets for the “$20 billion club” totaled $901.9 billion as of Dec. 31, up 8.6% from the start of the year, and projected benefit obligations totaled $1.05 trillion, up 7.3% from the start of the year.

Author(s): Rob Kozlowski

Publication Date: 2 March 2021

Publication Site: Pensions & Investments

Multiemployer pension measures cleared for relief bill vote

Mary Pat Campbell

Link: https://www.pionline.com/legislation/multiemployer-pension-measures-cleared-relief-bill-vote

Excerpt:

Legislation to help struggling multiemployer pension funds is to remain in the COVID-19 relief measure headed for a Senate vote this week.

The package also calls for some funding relief for single-employer plans, through extended amortization periods and pension interest rate smoothing changes.

The pandemic relief package was approved by the House along party lines Feb. 27. Its pension provisions were at risk of being stripped until the Senate parliamentarian ruled late Monday that they fit the rules for a budget reconciliation process that allows Democrats to prevail under a simple majority.

Author(s): Hazel Bradford

Publication Date: 2 March 2021

Publication Site: Pensions & Investments

Italy Goes Green for the First Time With Inaugural Bond Sale

Mary Pat Campbell

Link: https://finance.yahoo.com/news/italy-goes-green-first-time-082347375.html?.tsrc=fin-srch

Graphic:

Excerpt:

Italy is making its first foray into the green bond market, the latest major debt issuer to tap into one of the fastest-growing sectors of finance.

The nation is selling debt maturing in 2045 via banks, an unusual tenor that is expected to draw interest from domestic investors as well as specialist environmental funds. European nations are piling into the market as they seek to finance a greener recovery from the pandemic.

Author(s): John Ainger

Publication Date: 3 March 2021

Publication Site: Yahoo Finance

The Biggest Business Fails of All Time

Mary Pat Campbell

Link: https://moneywise.com/a/the-biggest-business-fails-of-all-time

Excerpt:

3. Spreadsheet error costs JPMorgan $3.1 billion

You might recall the “London Whale” incident in 2012, when notorious trader Bruno Iksil — whose other monikers include the White Whale and even Voldemort — conducted a series of credit default swaps that cost JPMorgan Chase $6.2 billion.

What you might not know, however, is that half the loss was incurred by a simple Excel spreadsheet error.

Bloomberg reports that the Excel model, which relied heavily on copy and pasting of information, accidentally “underestimated risk by half.”

Author(s): Serah Louis

Publication Date: 1 March 2021

Publication Site: MoneyWise