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Europe - United Kingdom:  Government considers strengthening Pensions Regulator’s powers 

On April 25, 2008, the government issued a consultation document on providing the Pensions Regulator (tPR) with powers to pursue companies and individuals whose actions weaken pension schemes, even where this effect is unintentional. The legislation will force companies to undertake more rigorous risk management.  [April 30, 2008]

Europe - Italy:  Private medical benefits part of most reward packages  

More than 85 percent of companies provide additional medical benefits to employees covered by national contractual labor agreements as a retention and attraction tool, a recent survey has found. While employers appear committed to providing private healthcare benefits, most predict the rate of medical cost increases will accelerate in coming years. Many will be looking to review plan design and benefits levels in an effort to control the cost of their plans.   [April 30, 2008]

Latin America/Caribbean - Colombia:  Higher minimums set for taxable income calculation  

Employed and independent workers' minimum taxable income for 2008 tax filings has been raised as of January 1, 2008.   [April 30, 2008]

Asia-Pacific - Australia:  Superannuation changes to go into effect 

As of July 1, 2008, all employers must provide superannuation support of at least 9 percent per employee’s “notional earnings base.” In addition, all superannuation funds must provide a minimum level of death insurance to members who have joined it by default. Although employers have been preparing to meet these requirements for some time, many are taking another look at their plans now that the deadline is drawing near.   [April 30, 2008]

United States:  Ruling may pave way for broader use of multinational pooled assets 

The Labor Department recently ruled that a specific but complex global asset pooling arrangement satisfies ownership requirements under the Employee Retirement Income Security Act (ERISA). This ruling potentially removes a significant roadblock multinational companies faced when attempting to combine assets of employee benefit plans maintained all over the world into a single pool.  [April 29, 2008]

Europe - Spain:  New accounting rules in place  

New accounting rules take effect for accounting periods beginning on or after January 1, 2008. The rules for long-term employee benefits liabilities may, on the surface, seem similar to international standards. However, a few differences could force employers to explore whether their accounts will qualify as equivalent under the new rules and could affect the valuation and accounting of their defined benefit pension liabilities.   [April 29, 2008]

Latin America/Caribbean - Chile:  Reforms could give employers new retirement tools 

The government recently approved a number of changes to retirement programs that could broaden coverage for workers. Among them is a provision that will allow employers to offer voluntary savings vehicles (ahorro provisional voluntario or APV) on a group basis, with tax advantages for employees. As a result, this new vehicle could offer employers a significant attraction and retention tool.  [April 25, 2008]

Europe - Sweden:  Proposal would make it easier to recruit foreign workers 

Proposed immigration reforms in Sweden would make it easier for employers to recruit employees from around the world and would automatically give work permits to any foreign worker with a job in Sweden. The measure, which is expected to be enacted, would take effect on December 15, 2008.  [April 23, 2008]

Latin America/Caribbean - Panama:  New social security system now in place 

A new social security system, with components of both traditional defined benefit (DB) pensions and defined contribution (DC) retirement accounts, began operating on January 1, 2008. Employers and employees are paying higher contributions to fund the new system.  [April 16, 2008]

Middle East - Israel:  Pension portability reform to be implemented 

Employees will be able to transfer funds between pension instruments and providers without suffering tax consequences, under legislation that will be implemented in two steps. The new law will apply to provident and pension funds as of October 1, 2008, and to executive insurance accounts as of January 1, 2009.   [April 14, 2008]

Latin America/Caribbean - Argentina:  Retirement benefits and contributions to social security increased  

Employers must withhold more social security contributions from employees’ paychecks according to a presidential decree of February 21, 2008. The decree also sets new maximum and minimum levels for retirement benefits paid by the government.   [March 31, 2008]

Europe - France:  Minimum pension payments and salaries adjusted 

Minimum pensions and salaries are being adjusted based on corrected inflation estimations, the Labor Minister recently announced.   [March 31, 2008]

Global:  Proposal would change postretirement benefit accounting 

The International Accounting Standards Board (IASB) has published a discussion paper that would make a number of changes to the way postretirement benefits are accounted for on financial statements. The Board is now accepting comments on the changes, which could give rise to a higher assessment of liabilities and increased volatility in financial statements.   [March 31, 2008]

Europe - Ireland:  Compulsory training for pension trustees to be introduced  

Companies will be required to arrange formal training for pension trustees under new regulations proposed by the Social Welfare and Pensions Bill 2008 and expected to be approved soon.   [March 28, 2008]

Europe - United Kingdom:  Strong penalties now in place for hiring illegal migrants 

Employers hiring illegal migrant workers from outside the European Union could face strong penalties under new immigration rules that took effect on February 29, 2008.   [March 28, 2008]

Latin America/Caribbean - Colombia:  Pension funds allowed greater equity investments 

Investment restrictions on pension funds have been loosened, allowing fund administrators to invest up to 40 percent of their assets in local and foreign stock, as well as in private investment funds.  [March 27, 2008]

Global:  New pooling networks information available 

Pooling networks have grown in popularity in recent years as multinational companies have realized they can use them for a variety of purposes – negotiating down insurance rates, collecting data and aggregating content to meet disclosure rules.  [March 26, 2008]

Asia-Pacific - China:  Pilot defined contribution schemes launched for public employees 

A pilot defined contribution retirement plan scheme for employees of state institutions is being launched in five provinces and municipalities. The plan was approved on February 29, 2008, by the Chinese State Council, and aims to narrow the gap between the benefits retired enterprise workers receive and those received by employees of state institutions.   [March 19, 2008]

Europe - Spain:  Social security reform now in effect 

Measures to encourage longer labor force participation and modernize the social security system are now in place. They went into effect on January 1, 2008, one and a half years after the government, trade unions and employer associations reached agreement on the contentious issues.   [March 18, 2008]