This whitepaper discusses changes in the Dutch pension system landscape and options for employers. The playing field for pensions has changed significantly due to factors like increased longevity, economic pressures, individualization, and stricter regulations. This has resulted in lower accrual rates and indexation potential. The document analyzes different pension scheme and administration options and how they distribute risks between employers and employees. It provides a matrix to help employers evaluate options based on interests of stakeholders like participants, works councils, and the employer.
Narrowed Horizons: the fiscal choices at Spending Review 2013 and beyondResolutionFoundation
The government's plans for deficit reduction have increasingly stark implications for public spending as their deadline draws nearer. The Resolution Foundations senior economist Matthew Whittaker explains the implications of current spending commitments and forecasts to the next election and beyond.
Sample Comprehensive Personal Financial Plan Created in Excel based Personal ...Satish Mistry
Sample Comprehensive Personal Financial Plan in Excel with Entire Life Cash Flow, Child Future Planning, Future Need & Dream Planning, Retirement Planning, Investment Planning, Investment Analysis, Portfolio Rebalancing, All Life Insurance Policy Analysis including LIC's Plan, IRR Calculation, Mutual Fund Porttfolio Analysis, Mutual Fund Portfolio Rebalancing, Practical Asset Allocation with Scheme Removal / Addition. Also seek possibilities of early retirement. Income Tax Planning with Net Taxation Ratio on your Income. Instant Generated Financial Plan in Excel with Real time value of your all Financial Investment ( In Indian Context). If uou need more info, kindly mail me.
Nordic Pension Funds Embrace a New RealityState Street
The document discusses challenges facing Nordic pension funds, including rising longevity, stringent solvency requirements, exposure to global markets, and aging populations. Pension funds in Sweden, Finland, Norway, and Denmark are undergoing reforms to address these issues, such as increasing retirement ages and adopting more defined contribution plans. Nordic funds are also diversifying their portfolios, increasing their use of alternative assets and passive investment strategies, and enhancing internal expertise and oversight of external managers. Improving data management and technology is seen as important for better governance and decision making.
This document discusses pension funds and their roles. Pension funds are meant to generate stable growth over the long term and provide financial support to employees when they retire. They are funded by both employer and employee contributions. Pension funds help maintain staff morale and productivity by assuring future financial stability. They also help attract and retain competent employees, support retirees and dependents, and encourage investment and growth. The document then discusses the National Social Security Fund (NSSF) in Kenya and its corporate social responsibility initiatives and milestones in membership growth and benefits.
This document summarizes key aspects of pensions in Canada. It discusses the issues facing pensions globally and in Canada due to low interest rates. It defines pension assets and liabilities and explains underfunding. It outlines the differences between defined benefit and defined contribution plans. It provides an overview of retirement options in Canada like CPP, OAS, RRSPs, and TFSAs. It discusses the large unfunded liabilities of public sector pensions in Canada and other countries. It also summarizes statistics about assets and returns of private sector pensions in Canada.
Presentation on superannuation and retirement income for people age 50 plusEquipsuper
1) The document provides information about retirement planning and income options from Equipsuper, an Australian superannuation fund and financial services provider.
2) It discusses strategies for increasing retirement savings like salary sacrificing, making extra contributions, and using a transition to retirement pension.
3) The document also covers converting superannuation into retirement income streams like account-based pensions, and managing investments and withdrawals over the course of retirement.
Top10 SMSF strategies for 2011/12 presentation conducted by Aaron Dunn of The SMSF Academy in conjunction with Business Fitness.
Download a copy of the free webinar, by visiting http://thesmsfacademy.com.au/free-webinars/
Hi Friends,This presentation provides the details about the pension plan and its benefit.You can know now that why pension plan is important for life and in old age.For more details visit here :- www.thepolicykart.com..also you can check cons and pros of this plan also,because many companies provide pension plan,but the executive didn't provide the proper details to them.
Narrowed Horizons: the fiscal choices at Spending Review 2013 and beyondResolutionFoundation
The government's plans for deficit reduction have increasingly stark implications for public spending as their deadline draws nearer. The Resolution Foundations senior economist Matthew Whittaker explains the implications of current spending commitments and forecasts to the next election and beyond.
Sample Comprehensive Personal Financial Plan Created in Excel based Personal ...Satish Mistry
Sample Comprehensive Personal Financial Plan in Excel with Entire Life Cash Flow, Child Future Planning, Future Need & Dream Planning, Retirement Planning, Investment Planning, Investment Analysis, Portfolio Rebalancing, All Life Insurance Policy Analysis including LIC's Plan, IRR Calculation, Mutual Fund Porttfolio Analysis, Mutual Fund Portfolio Rebalancing, Practical Asset Allocation with Scheme Removal / Addition. Also seek possibilities of early retirement. Income Tax Planning with Net Taxation Ratio on your Income. Instant Generated Financial Plan in Excel with Real time value of your all Financial Investment ( In Indian Context). If uou need more info, kindly mail me.
Nordic Pension Funds Embrace a New RealityState Street
The document discusses challenges facing Nordic pension funds, including rising longevity, stringent solvency requirements, exposure to global markets, and aging populations. Pension funds in Sweden, Finland, Norway, and Denmark are undergoing reforms to address these issues, such as increasing retirement ages and adopting more defined contribution plans. Nordic funds are also diversifying their portfolios, increasing their use of alternative assets and passive investment strategies, and enhancing internal expertise and oversight of external managers. Improving data management and technology is seen as important for better governance and decision making.
This document discusses pension funds and their roles. Pension funds are meant to generate stable growth over the long term and provide financial support to employees when they retire. They are funded by both employer and employee contributions. Pension funds help maintain staff morale and productivity by assuring future financial stability. They also help attract and retain competent employees, support retirees and dependents, and encourage investment and growth. The document then discusses the National Social Security Fund (NSSF) in Kenya and its corporate social responsibility initiatives and milestones in membership growth and benefits.
This document summarizes key aspects of pensions in Canada. It discusses the issues facing pensions globally and in Canada due to low interest rates. It defines pension assets and liabilities and explains underfunding. It outlines the differences between defined benefit and defined contribution plans. It provides an overview of retirement options in Canada like CPP, OAS, RRSPs, and TFSAs. It discusses the large unfunded liabilities of public sector pensions in Canada and other countries. It also summarizes statistics about assets and returns of private sector pensions in Canada.
Presentation on superannuation and retirement income for people age 50 plusEquipsuper
1) The document provides information about retirement planning and income options from Equipsuper, an Australian superannuation fund and financial services provider.
2) It discusses strategies for increasing retirement savings like salary sacrificing, making extra contributions, and using a transition to retirement pension.
3) The document also covers converting superannuation into retirement income streams like account-based pensions, and managing investments and withdrawals over the course of retirement.
Top10 SMSF strategies for 2011/12 presentation conducted by Aaron Dunn of The SMSF Academy in conjunction with Business Fitness.
Download a copy of the free webinar, by visiting http://thesmsfacademy.com.au/free-webinars/
Hi Friends,This presentation provides the details about the pension plan and its benefit.You can know now that why pension plan is important for life and in old age.For more details visit here :- www.thepolicykart.com..also you can check cons and pros of this plan also,because many companies provide pension plan,but the executive didn't provide the proper details to them.
Five Trends Reshaping the Global Pension Fund IndustryState Street
This executive briefing explores how pension funds are adapting to the challenges of a new investment environment. The research presented in this report is based on an international State Street survey, conducted by the Economist Intelligence Unit in August 2014, of 134 senior executives in the pension fund industry.
The document provides an assessment of India's fiscal situation for the base year 2012-13 if no corrective policy actions are taken. It estimates that the fiscal deficit would reach around 6.1% of GDP compared to the budget estimate of 5.1%, due to a likely tax revenue shortfall of Rs. 60,000 crore and higher than budgeted subsidy expenditures of Rs. 70,000 crore. Key risks are seen in oil and fertilizer subsidies due to rising international prices and a weakening rupee.
The document discusses retirement planning and provides information about retirement benefits. It covers topics such as the importance of retirement planning, sources of retirement income like government and company programs, retirement benefit schemes, and strategies for retirement planning such as maximizing workplace savings and establishing IRAs. The document aims to help people understand retirement and the need for financial planning to ensure a comfortable retirement.
Superannuation is a mandatory retirement savings scheme in Australia where employers contribute a percentage of an employee's salary to a superannuation fund on their behalf. These funds are tax-advantaged and allow savings to grow for retirement income. Employers must contribute a minimum of 15% of basic salary to each employee's superannuation scheme, which is often managed by life insurance companies like LIC to provide pensions for retirement.
This is a copy of the presentation of the August 2010 Webinar on High Net Worth SMSF strategies conducted on 'thedunnthing' blog, http://thedunnthing.com
This document provides an overview of key economic indicators and competitiveness rankings for France. It shows that in 2012, France had a population of 65.4 million people and GDP of $2.6 trillion. France ranked 23rd out of 148 countries on the Global Competitiveness Index, with strengths in infrastructure and market size but weaknesses in labor market efficiency and taxation. The most problematic factors for business were found to be restrictive labor regulations, tax rates and regulations, and access to financing.
Superannuation refers to a pension granted upon retirement. Retirement plans are typically set up by employers, insurance companies, governments, or other institutions to provide income for people after they stop regular employment. Superannuation funds are retirement benefits contributed by employers, usually a percentage of basic wages, and invested over time to provide pension payments upon retirement. Employees can withdraw some benefits as a lump sum at retirement and receive the rest as monthly annuity payments. Unused superannuation balances can be transferred if employees change employers or withdrawn with tax implications if no longer working.
"You would be surprised that in some schools, the restriction appears to be implicitly understood, since they neither have a line for temporarily restricted funds on their balance sheet nor the statement below in their respective financial statement notes".
This document is Mohammed Saud Alshiban's personal financial plan. It includes assumptions about his income, assets, and goals. It provides analyses of his current balance sheet, income statement, asset allocation, credit card options, investment funds, home purchase, taxes, and insurance coverage. The plan outlines Mohammed's short-term goals within 5 years and longer-term goals within 10-20 years, such as paying off his mortgage, investing in a business and beach property, and family trips.
This document discusses non-performing assets (NPAs) in the Indian banking system. It defines NPA and categorizes them as standard, sub-standard, doubtful or loss assets. It examines the causes of NPA, including lack of due diligence, speculation, default, fraud and policy changes. The high levels of NPA have negatively impacted banks' profits, cash flows, goodwill and equity values. The document analyzes factors driving the rise in NPA, both internal like management issues, and external like economic conditions. It provides bank-wise NPA ratios for 2017-18 and discusses strategies to manage NPA, including preventive monitoring and curative actions like restructuring loans, settlements and legal recovery processes.
Pension plans are schemes by which small amount is saved on a monthly basis over a considerable period of time so that one can enjoy monthly income after retirement.
The document discusses various risks to consider for retirement planning such as longevity risk, inflation risk, and investment risk. It introduces variable annuities as a potential solution to help mitigate these risks by providing guaranteed lifetime income, protection against market downturns, and upside potential from stock market investments. Variable annuities can help secure retirement income through features such as living benefits and death benefits. Working with a financial advisor can help assess if a variable annuity is a suitable strategy for individual retirement goals and risk tolerance.
This document summarizes a report on a proposed New South Wales Government social impact bond pilot program. The report reviews potential policy areas and nonprofit organizations for the pilot, assesses investor appetite, and recommends a structure. It finds potential in programs addressing juvenile justice and parenting skills, and identifies criteria for selecting participants, measuring outcomes, and establishing an independent audit body. The report provides an overview of social impact bonds and lessons from the UK experience to inform next steps for the NSW Government's pilot program.
This document discusses the latest trends and strategies for SMSF estate planning, including:
1. Using binding death benefit nominations and including provisions in governing rules to direct benefits to specific beneficiaries.
2. Paying death benefits to "non-traditional" beneficiaries like those in an interdependency relationship.
3. Managing the tax implications of death benefits, including any untaxed elements or use of anti-detriment payments.
4. Preserving fund assets and control after a member's death through strategies like non-member benefit insurance or paying income streams.
Good SMSF estate planning requires a holistic understanding of the SMSF's interaction with a member's other assets and estate plan.
A powerful presentation on non performing assets which very much influencial when presented before others. Being a law student, I myself created the presentation and presented before the elite authorities which impressed them to a larger extent.
The newsletter provides an overview of the Indian stock market and economy in May 2021. It notes that most equity indices rallied significantly over the month, with gains of 7-10%. Banking and financial stocks saw major recoveries, while metal stocks had phenomenal rises. The newsletter suggests the market is no longer fearful of rising COVID cases and sees signs of sector rotation. It provides recommendations on positioning equity investments and strategies for the current situation. The newsletter also includes sections on personal finance topics like emergency funds, health insurance, and term life insurance.
Este documento presenta un proyecto para promover la carrera de psicología entre los recién egresados de la preparatoria de la Universidad Metropolitana de Monterrey (UMM). El objetivo es informar a los estudiantes sobre las actividades y ámbitos a los que tendrán acceso si estudian psicología en la UMM. El mensaje transmitirá que la psicología permite entender el mundo desde diferentes perspectivas. Los medios de comunicación incluirán volantes, redes sociales de la universidad y una conferencia. El plan de acción det
Este documento presenta los principios de contabilidad generalmente aceptados aprobados en 1965, los cuales incluyen: equidad, ente, bienes económicos, moneda de cuenta, empresa en marcha, valuación al costo, ejercicio, devengado, objetividad, realización, prudencia, uniformidad, materialidad y exposición. Estos principios establecen las bases para la preparación de estados financieros que reflejen de manera justa la situación financiera y los resultados de una entidad.
Five Trends Reshaping the Global Pension Fund IndustryState Street
This executive briefing explores how pension funds are adapting to the challenges of a new investment environment. The research presented in this report is based on an international State Street survey, conducted by the Economist Intelligence Unit in August 2014, of 134 senior executives in the pension fund industry.
The document provides an assessment of India's fiscal situation for the base year 2012-13 if no corrective policy actions are taken. It estimates that the fiscal deficit would reach around 6.1% of GDP compared to the budget estimate of 5.1%, due to a likely tax revenue shortfall of Rs. 60,000 crore and higher than budgeted subsidy expenditures of Rs. 70,000 crore. Key risks are seen in oil and fertilizer subsidies due to rising international prices and a weakening rupee.
The document discusses retirement planning and provides information about retirement benefits. It covers topics such as the importance of retirement planning, sources of retirement income like government and company programs, retirement benefit schemes, and strategies for retirement planning such as maximizing workplace savings and establishing IRAs. The document aims to help people understand retirement and the need for financial planning to ensure a comfortable retirement.
Superannuation is a mandatory retirement savings scheme in Australia where employers contribute a percentage of an employee's salary to a superannuation fund on their behalf. These funds are tax-advantaged and allow savings to grow for retirement income. Employers must contribute a minimum of 15% of basic salary to each employee's superannuation scheme, which is often managed by life insurance companies like LIC to provide pensions for retirement.
This is a copy of the presentation of the August 2010 Webinar on High Net Worth SMSF strategies conducted on 'thedunnthing' blog, http://thedunnthing.com
This document provides an overview of key economic indicators and competitiveness rankings for France. It shows that in 2012, France had a population of 65.4 million people and GDP of $2.6 trillion. France ranked 23rd out of 148 countries on the Global Competitiveness Index, with strengths in infrastructure and market size but weaknesses in labor market efficiency and taxation. The most problematic factors for business were found to be restrictive labor regulations, tax rates and regulations, and access to financing.
Superannuation refers to a pension granted upon retirement. Retirement plans are typically set up by employers, insurance companies, governments, or other institutions to provide income for people after they stop regular employment. Superannuation funds are retirement benefits contributed by employers, usually a percentage of basic wages, and invested over time to provide pension payments upon retirement. Employees can withdraw some benefits as a lump sum at retirement and receive the rest as monthly annuity payments. Unused superannuation balances can be transferred if employees change employers or withdrawn with tax implications if no longer working.
"You would be surprised that in some schools, the restriction appears to be implicitly understood, since they neither have a line for temporarily restricted funds on their balance sheet nor the statement below in their respective financial statement notes".
This document is Mohammed Saud Alshiban's personal financial plan. It includes assumptions about his income, assets, and goals. It provides analyses of his current balance sheet, income statement, asset allocation, credit card options, investment funds, home purchase, taxes, and insurance coverage. The plan outlines Mohammed's short-term goals within 5 years and longer-term goals within 10-20 years, such as paying off his mortgage, investing in a business and beach property, and family trips.
This document discusses non-performing assets (NPAs) in the Indian banking system. It defines NPA and categorizes them as standard, sub-standard, doubtful or loss assets. It examines the causes of NPA, including lack of due diligence, speculation, default, fraud and policy changes. The high levels of NPA have negatively impacted banks' profits, cash flows, goodwill and equity values. The document analyzes factors driving the rise in NPA, both internal like management issues, and external like economic conditions. It provides bank-wise NPA ratios for 2017-18 and discusses strategies to manage NPA, including preventive monitoring and curative actions like restructuring loans, settlements and legal recovery processes.
Pension plans are schemes by which small amount is saved on a monthly basis over a considerable period of time so that one can enjoy monthly income after retirement.
The document discusses various risks to consider for retirement planning such as longevity risk, inflation risk, and investment risk. It introduces variable annuities as a potential solution to help mitigate these risks by providing guaranteed lifetime income, protection against market downturns, and upside potential from stock market investments. Variable annuities can help secure retirement income through features such as living benefits and death benefits. Working with a financial advisor can help assess if a variable annuity is a suitable strategy for individual retirement goals and risk tolerance.
This document summarizes a report on a proposed New South Wales Government social impact bond pilot program. The report reviews potential policy areas and nonprofit organizations for the pilot, assesses investor appetite, and recommends a structure. It finds potential in programs addressing juvenile justice and parenting skills, and identifies criteria for selecting participants, measuring outcomes, and establishing an independent audit body. The report provides an overview of social impact bonds and lessons from the UK experience to inform next steps for the NSW Government's pilot program.
This document discusses the latest trends and strategies for SMSF estate planning, including:
1. Using binding death benefit nominations and including provisions in governing rules to direct benefits to specific beneficiaries.
2. Paying death benefits to "non-traditional" beneficiaries like those in an interdependency relationship.
3. Managing the tax implications of death benefits, including any untaxed elements or use of anti-detriment payments.
4. Preserving fund assets and control after a member's death through strategies like non-member benefit insurance or paying income streams.
Good SMSF estate planning requires a holistic understanding of the SMSF's interaction with a member's other assets and estate plan.
A powerful presentation on non performing assets which very much influencial when presented before others. Being a law student, I myself created the presentation and presented before the elite authorities which impressed them to a larger extent.
The newsletter provides an overview of the Indian stock market and economy in May 2021. It notes that most equity indices rallied significantly over the month, with gains of 7-10%. Banking and financial stocks saw major recoveries, while metal stocks had phenomenal rises. The newsletter suggests the market is no longer fearful of rising COVID cases and sees signs of sector rotation. It provides recommendations on positioning equity investments and strategies for the current situation. The newsletter also includes sections on personal finance topics like emergency funds, health insurance, and term life insurance.
Este documento presenta un proyecto para promover la carrera de psicología entre los recién egresados de la preparatoria de la Universidad Metropolitana de Monterrey (UMM). El objetivo es informar a los estudiantes sobre las actividades y ámbitos a los que tendrán acceso si estudian psicología en la UMM. El mensaje transmitirá que la psicología permite entender el mundo desde diferentes perspectivas. Los medios de comunicación incluirán volantes, redes sociales de la universidad y una conferencia. El plan de acción det
Este documento presenta los principios de contabilidad generalmente aceptados aprobados en 1965, los cuales incluyen: equidad, ente, bienes económicos, moneda de cuenta, empresa en marcha, valuación al costo, ejercicio, devengado, objetividad, realización, prudencia, uniformidad, materialidad y exposición. Estos principios establecen las bases para la preparación de estados financieros que reflejen de manera justa la situación financiera y los resultados de una entidad.
Presentation in English about U-QASAR and how it connects with the current problems found by the growing number of SQA SaaS tools found in the enterprise market.
Jeune Afrique Media Group is the largest pan-African media group in terms of readership, audience, influence, and engagement on the continent. It produces influential print and digital publications, as well as audiovisual content seen by over 5.5 million people weekly. The group provides strategic communication and media solutions to help clients raise their profile and become economic leaders in Africa through its expertise in content creation, events, and audiovisual production.
This short document promotes creating presentations on the photo sharing platform Haiku Deck and sharing them on SlideShare. It features a photo from NASA and text encouraging the reader to get started making their own Haiku Deck presentation. The message is to try making a presentation using Haiku Deck's tools and share it publicly on SlideShare.
Charlie Quinones is seeking a position that allows him to gain knowledge and experience. He has over 15 years of work experience including as an order selector, forklift operator, extruder operator, electronic assembler, and yard maintainer. His skills include critical thinking, judgment and decision making, troubleshooting, and repairing. He is bilingual in English and Spanish and holds forklift and electric pallet jack certifications.
Defined Contribution In Europe: the DirectionOpen Knowledge
One of the most important developments in the retirement landscape over the past years is the global trend away from defined benefit (DB) plans towards defined contribution (DC) plans. This shift is having an immense impact on public policy and the retirement industry.
20151008 The Future Book - Edition 2015 finalSarah Luheshi
The document provides an overview of the UK pension system and changes that have impacted defined contribution pensions. It describes the state pension system and voluntary private pensions. It outlines risks in pension saving and how defined benefit, defined contribution, and hybrid schemes allocate risks differently. It also discusses demographic trends like increasing lifespans and market changes that have reduced defined benefit provision, leading to more people saving in defined contribution schemes.
2012 Small Employer Health Insurance Survey EhealthinsuranceRobert Hutt
This document summarizes the findings of a survey of 236 small business owners regarding their health insurance plans and costs. Key findings include:
- Nearly all employers prioritized affordability over other factors like benefits or access to doctors.
- Most spent over $300/month per employee on premiums, though over half required employees to pay 10% or less of premiums.
- While affordability was important, over 60% offered plans with deductibles of $1,500 or less annually.
Like the rest of the financial services industry, insurers are subject to increasingly complex and prescriptive regulations and standards. In the year ahead, insurers will need to focus on the new U.S.Department of Labor fiduciary standard, which is likely to have a significant effect on how insurance products are sold. Moreover, global developments, especially those related to the developing International Capital Standard, will require insurers to closely monitor – and ideally contribute to – official discussions about how globally active insurers should manage capital
The document discusses compensation surveys, which are used by organizations to determine prevailing market rates and design competitive compensation strategies. It outlines the importance of compensation and benefits in motivating employees and reinforcing organizational culture. It then describes the objectives and types of compensation surveys, including standard and customized surveys. Steps for conducting an effective salary survey are also provided, such as determining an appropriate sample, comparing data accurately, and evaluating a survey's validity.
This document contains the table of contents for a report on sustainable finance and human rights. The report analyzes survey data collected in 2022 from 85 financial institutions in Europe and compares it to baseline data from 2020. Key findings show that while human rights remain a priority, regulations are now the main driver for addressing them. Top management still supports human rights but organizations face obstacles integrating them fully. The report recommends that financial institutions strengthen human rights practices, use reporting to drive implementation, and that stakeholders work towards more consistent standards and data sharing.
This document contains the table of contents for a report on sustainable finance and human rights. The report analyzes data from surveys conducted in 2020 and 2022 among banks and asset managers in Europe to assess developments in integrating human rights considerations into their core activities. Key findings show that while support from top management remains, integrating human rights fully into operations remains challenging due to lack of data from companies and need for clearer guidance. The report recommends that financial institutions strengthen human rights capacity and reporting, and that other stakeholders support consistent regulations, data provision, and sustainable finance demands.
The document discusses how increased choice in UK pension benefits has created behavioral complications for members. It examines potential behaviors people may exhibit given more freedom over how they access pension funds. While choice is welcomed, there is concern that too much could overwhelm people and reduce optimal outcomes. The key question is how much choice is dangerous and how can its effects be managed. The document suggests employers understand member behaviors to plan accordingly and provide support through engagement programs to help people make informed retirement decisions.
This year’s guide has a particular focus on the United Kingdom, and featured topics include automatic enrolment, pension flexibility and the rise of defined contribution pensions.
This report analyzes liability-driven investment strategies to hedge risks for pension funds. It first discusses the pension crisis and identifies key risks like shifting demographics, market volatility, and interest rates. It then models pension liabilities using actuarial assumptions and cash flow projections. Several hedging strategies are proposed, including duration matching with futures. Back-testing finds that combining corporate bond and long-term Treasury futures best hedges risks. The results suggest heavier weighting of corporate bonds and stocks for underfunded plans.
Welcome to the fifth edition of Outline, Redington’s quarterly collection of thought-pieces designed to help institutional investors make smarter and more informed decisions.
This edition features short articles on the future of pensions policy, the complexities of running a pension scheme and how technology can help overcome them, risks inherent from gilt and swap rate differences, an outcome-driven approach to fund management, a review of asset classes in 2013, plus an overview of the global macro environment.
We hope you find the articles interesting and helpful as you consider how best to manage the risk-adjusted return of your portfolios
The document is a report by Boston College Center for Work & Family sponsored by MetLife that examines how multinational companies are helping employees better manage their personal finances globally. It finds that financial wellness is influenced by factors like financial literacy, behavior, situation, and stressors. While government provisions and cultural differences impact programs, companies are increasingly providing financial education to address lack of preparation for financial decision-making and retirement responsibility among consumers worldwide in light of pension changes. The recession had varied impacts by country but increased concerns over job security and financial stress for many.
Inflation Hedging and the Change in Indexation from RPI to CPI - Survey ResultsRedington
The document summarizes the results of a survey conducted by Redington and Pension Corporation on UK final salary pension schemes. Key findings from the survey include:
- The majority of defined benefit pension schemes are highly vulnerable to future inflation increases as less than 20% have at least 50% of their inflation-linked pensions backed by inflation-linked assets.
- 64% of actuaries and 39% of trustees believe schemes will carry out a buy-out or buy-in within the next three years.
- 91% of trustees said they would consider better asset-liability matching over the next three years.
The document discusses expanding private disability insurance (PDI) in Australia to reduce the economic burden on the National Disability Insurance Scheme (NDIS). Currently, PDI coverage is limited and most disability support comes from government programs. The modelling study examines how financial incentives for PDI, similar to incentives for private health insurance, could increase PDI uptake and generate savings for both government programs and private insurers. The findings suggest that with appropriate premiums and rebates, expanded PDI coverage could save the government $8.5 billion over 5 years while reducing reliance on the NDIS and Disability Support Pension.
Several scam websites have been suspended that were misleading people about accessing their pension funds before age 55. The National Crime Agency has suspended around 18 pension scam websites as well as those using text messages and cold calls. Normally people cannot access pensions before 55 unless seriously ill, but scammers were enticing people to access funds early against the rules. Managing frozen pension plans still requires active management and planning like active plans, reviewing strategies for funding, investments, benefits and finances. Pension plans may be frozen to minimize total obligations, and companies will need plans for covering shortfalls if underfunded and making lump sum payouts.
This document provides an overview of trends impacting the global financial services industry in 2012 from the perspective of Investance, a management consulting firm. It identifies 12 key trends, including a focus on increasing capital requirements, right-sizing businesses to focus on core operations, growth in emerging markets and fee-based businesses, and cost optimization efforts. The document also discusses views on European and French banking, including the need to reduce balance sheets and rescale business portfolios due to regulatory changes and liquidity scarcity.
This document discusses how to conduct a compensation review to assess pay equity within an organization. It outlines the challenges of ensuring internal pay equity given recent legal and regulatory changes. The key steps discussed are:
1. Involving legal counsel from the beginning to maintain confidentiality.
2. Establishing clear goals for the review such as assessing exposure to litigation/investigation or planning for mergers.
3. Careful planning which includes defining the employee groups and compensation metrics to study, and determining internal and external involvement.
4. Proper grouping of employees for valid comparisons during analysis.
It emphasizes the importance of the compensation review for risk management, but cautions that organizations must be prepared to make
International certificate in advanced wealth management applied financial adv...Adel Alaa
This document discusses cash deposits, including:
1) The main types of cash deposit accounts are current/checking accounts, which provide easy access but low interest, and savings accounts, which provide higher interest but may have restrictions on access.
2) Savings accounts can be further classified as instant access, notice, or fixed-term accounts depending on requirements for advance notice of withdrawals and restrictions on access.
3) Key factors to consider when selecting a cash deposit include access, security, liquidity, and interest rates. Deposit insurance and credit risk of the institution should also be considered.
This document discusses pension trends in emerging markets, specifically the rise of defined contribution (DC) pension plans in Central and Eastern Europe and Asia. It notes that these regions have undertaken more extensive pension reforms than Western countries by establishing mandatory DC plans to improve portability and transparency. This will lead to rapid growth of pension assets but also poses challenges regarding financial education, plan design, regulation, and product development to ensure adequate retirement incomes.
1. Risk. Reinsurance. Human Resources.
Aon Hewitt
Pension solutions in 2016:
Whitepaper
January 2016
2. Aon Hewitt Pension solutions in 2015: back to basics 32 Name of study or publication
1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2 A new playing field. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Increased life expectancy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
Economic downturn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
Individualisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
New, stricter regulations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
Changes to the playing field . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
3 Pension schemes: who bears which risk. . . . . . . . . . . . . . . . . . . . . . . 6
The employer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
The employee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
DB schemes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
DCschemes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
4 Forms of administration: increasing number of options. . . . . . . . . . . 7.
PPI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
IORP and multi-IORP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
APF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
5 Factoring in all interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
6 Getting started!. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Contact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Table of Contents
For many years, the Dutch pension system has been renowned as one of the best pension systems in the world.
However, our system has undergone significant change. Under legislation effective from 1 January 2015, pension
accrual has dramatically decreased with far stricter requirements to pension funds.
The pace at which our pension legislation has changed is high to such an extent that employers and pension funds can
often only implement the bare necessities in order to comply with statutory obligations and requirements. However,
exactly now, when the dust is settling, it is vital to not put the pension file in a drawer, but dig a spade deeper and
review the fundamental reasons for having a pension plan.
Ask yourself the following questions:
• Which mid-term strategic goals does my company have?
• Does the current employment benefits package contribute to achieving those goals? Does the current pension
system still match the employee benefits package I wish to offer my employees?
• How much freedom of choice do my employees or pension participants have and what are the risks they run?
• Which form of administration is most appropriate for our business strategy?
This whitepaper shows how Aon Hewitt assesses the changing playing field with respect to pensions. You can also
read which pension schemes are the best solution for you as an employer and which pension solutions offer the best
options to your employees. This will help you make well-founded choices and arrive at a suitable scheme for you and
your employees.
1 Introduction
3. Aon Hewitt Pension solutions in 2015: back to basics 4 Aon Hewitt Pension solutions in 2015: back to basics 5
Economic downturn
The economic climate in the Netherlands has added additionel pressure to the pension system. Companies and their
employees are feeling the squeeze due to low market interest rates reducing the returns on the invested pension
assets. This makes pension accrual under a Defined Benefit agreement (DB scheme) more expensive. Even for Defined
Contribution pension schemes (DC schemes), the low market interest rates are felt, as this affects the pension that can
be purchased upon retirement. The question is whether we will manage to grant indexation on our pension benefits
in the coming 5 to 10 years.
Individualisation
In social terms, strong individualisation and less solidarity is now asserting itself. We want to be independent and
require increasing freedom of choice - also relating to our old age provisions. Employees expect their employer to
adjust their pension scheme to their risk preference. Accordingly, risk appetite surveys are quickly growing in popularity.
Stricter regulations
To counter the effect of the aging population and economic downturns, the Pension Funding Framework (nPFF)
became effective on 1 January 2015. It includes stricter rules relating to funding ratios and more explicit alignment of
relating to the investment policy with both employers and pension participants risk appetites. For example, how do
they deal with interest rate risk? In addition pension insurers are confronted with stricter supervision requirements
issued by European authorities.
Meanwhile, the requirements imposed on pension fund board members are also becoming increasingly strict. This
makes it hard to find new pension fund board members, whilst there is more demand for such persons.
Changes to the playing field
The changes in the pensions playing field can be set out in a diagram as follows:
2 A new playing field
The legislation and regulations around pension accrual traditionally corresponded closely to the economic and demo-
graphic situation in our country. In these fields in particular, there were many changes in the past few years. With the
PFF (Pension Funding Framework), the government has already substantially amended legislation and regulations in
order to ensure the sustainability of our pension system. The SER (the Dutch Social and Economic Council) is currently
studying new variations of our pension system that may be a better match to our economic performance and demo-
graphics. The findings of the SER will form the basis for future changes to the pension system in the
Netherlands.
Increased life expectancy
In the past few decades, the main problem was the continued increase in our life expectancy. This causes a substantial
increase in our pension liabilities; after all, an aging population proportionally requires a higher pension capital. The
expectation is that life expantancies will continu to increase in the coming years. This means we should assume that
we will have to accrue more pension in the years to come, for example by working longer.
Life expectancy at birth (in years)
Source: Forecast Table AG2014
Decreasing
• Employees’ acceptance of risk transfer
• Interest rate
• Value of shares
Increasing
• Pressure from regulators:
- AFM (Financial Markets Authority)
- DNB (the Dutch Central Bank)
• Stakeholder expectations:
- Employees
- Works Councils
- Pensioners
84
82
80
78
76
74
72
70
68
66
1950 1960 1970 1980 1990 2000 2010
men women
4. Aon Hewitt Pension solutions in 2015: back to basics 6 Aon Hewitt Pension solutions in 2015: back to basics 7
4 Forms of administration:
increasing number of options
Choosing a particular pension design is not the only point of attention for you as an employer. Selecting the right
vehicle for the chosen design is also of crucial importance. The options and choices are increasing. Have you been
satisfied with your company pension fund for years and would you like to continue? Or are you also considering other
options, such as membership in a sector-wide pension fund or direct insurance with an insurer?
In addition to these traditional vehicles, it has recently become possible to also choose a PPI, IORP or multi-IORP.
Another option, i.e. establishing an APF (General Pension Fund), is added since januari 2016. What are these new
pension vehicles exactly? In which situation should you choose which option? And for whom?
PPI
A Premium Pension Institution (PPI) is a relatively new vehicle for investing pension premiums. Anyone can establish a
PPI - including employer and employee organisations, banks, asset managers and advisors, subject to licensing. PPIs
are only allowed to administer pure DC schemes, excluding any risk benefits. PPIs are often cheaper in terms of admi-
nistration fees than pension insurers; however, the investment risk is fully transferred to the employee and a PPI is not
able to offer guaranteed pension amounts. PPIs are a logical alternative to direct insurance and their popularity is on
the increase.
IORP and multi-IORP
An IORP is a cross-border pensionfund with centralised governance, financing and investment management. It is an
attractive option for pension funds that feel that asset management and indexation potential in their current form of
administration has room for improvement. Multi-national organisations with pension plans in a number of European
countries may be interested in estabishing an IORP. Smaller employers may be interested in joing a luti-IORP (an IORP
for multiple unrelated employers). In either case, and IORP (or multi-IORP) offers advantages for employers and plan
members. For example, a defined benefit scheme can be administered with lower costs and risks.
APF
In December 2015 a law was introduced that made the creation of a so-called General Pension Fund (APF) possible.
The Senate approved this bill on December 22, 2015 and the law went into effect on 1 January 2016. From that date
on, pension administrators can apply for a license. The APF is especially suited for small funds and employers with an
insured scheme. Suited for small funds, because it enables them to combine their management and administration.
Suited for employers with an insured scheme, because with the current low interest rate, guarantees have become
way too expensive to insurers. They then benefit from economies of scale, but retain control over the scheme.
3 Pension schemes: who bears
which risk?
The distribution of risks between employers and employees is a major issue in pensions. How are risks distributed in
your pension scheme? How should they be distributed according to your employees? What are the options under the
new pension regulations in the current playing field? Depending on the desired distribution, you may choose
between various pension schemes.
The employer
The employer generally pays most of the premium in the Netherlands. Depending on the pension system, the content
of the pension scheme and a fluctuating interest rate may lead to major fluctuations in contributions. In general, the
highest short-term risk is therefore for the employer.
The employee
For the employee, the main risk is the long-term risk relating to the amount of the pension eventually to be provided.
In this context, it is detrimental that the accrued pension premiums have been granted no or very low indexation -
and it is not expected that this will be possible in the next few years either. After all, lower pensions lead to lower post-
retirement purchasing power. This applies equally to pensioners and employees still accruing a pension.
DB scheme
With a DB scheme, your employees’ annual pension accrual is fixed, but the premium may vary during the year. This is
mainly a risk to you as an employer, since you pay most of the premium. Approximately 80 to 85% of Dutch employees
are currently accruing pension in a DB scheme. DB schemes are very popular among sector-wide pension funds in
particular. To keep a grip on the premium, a CDC scheme could be an attractive alternative.
DC scheme
In a DC scheme, the monthly premium for the employees is fixed, and you, as the employer, need to include only the
premiums paid in your annual financial statements. The uncertainty lies mainly in the eventual pension capital
accrued, which depends on the returns achieved. In fact, this means that the investment risk is fully transferred to the
employee. DC schemes are popular with employers who take out a new pension scheme. Approximately 90% opts for
a DC scheme.
5. Aon Hewitt Pension solutions in 2015: back to basics 8 Aon Hewitt Pension solutions in 2015: back to basics 9
6 Getting started!
Now is the time to fundamentally review your pension scheme and the new playing field and take a critical look at the
future. Going beyond compliance with new statutory requirements - that is the opportunity. After all, the plan design,
the financing method, indexation potential and the risk appetite of all stakeholders as well as the pension vehicle are
closely interrelated.
Only by factoring in the interests of all stakeholders will you arrive at the best possible pension plan for your
employees which is both sustainable and aligned with your company’s business objectives.
5 Factoring in all interests
Knowledge of the available options and their benefits and disadvantages is not all that is required. The real challenge
is to balance all interests when choosing a scheme. Which interests will you give the highest weighting? How do you
see your employer practices in relation to this key secondary employee benefit? Making an inventory and weighting of
all interests will allow you to find the best long-term future-proof pension solution for you and your employees.
The matrix below can serve as a starting point for making a well-founded choice. The matrix indicates how the options
compare for both the pension participants, the extent of participation by the Works Councils and unions and for you
as an employer. Please note that this is no more than a general outline. We recommend couducting a feasibility study
for your specific situation to arrive at best solution.
Company
pension fund
Insured scheme Sector-wide
pension fund
(Multi) IORP APF
Participants
indexation
Limited Moderate Limited Higher Limited
Investment/mix risk Moderate Low Moderate Moderate Moderate
Pension liabilities Moderate High High Moderate High
Other costs Moderate Moderate Low Moderate Moderate
Volatility High Low Low Moderate Moderate
Control Moderate Low Low High Moderate
Time required for governance Hard Light Light Moderate Moderate
6. Aon Hewitt Pension solutions in 2015: back to basics 10 Aon Hewitt Pension solutions in 2015: back to basics 11
Contact
Frank Driessen (Chief Commercial Officer) has been working for Aon Hewitt since 2001. He joined the
Board of Directors of Aon Hewitt Netherlands in 2012. In his role as Chief Commercial Officer, Frank is
responsible for advisory services and the quality of Aon Hewitt’s service provision to customers. He
also fulfils the role of Chief Actuary.
Frank has extensive experience at Board and Director level within sector-wide and company pension
funds and international and domestic companies. He deals with strategic reorientation of pension
schemes, mergers and acquisitions and negotiation processes within insurers and reinsurers, among
other things. Customers characterize Frank as a pro-active and solution-driven consultant. Frank
studied Econometrics at Tilburg University and Actuarial Science at Amsterdam University. He is a
member of the Actuarial Association and Actuaris AG.
Frank (F.H.P.) Driessen, AAG
M 06 12 99 18 85
E frank.driessen@aonhewitt.com
www.aonhewitt.com