The Latest Global NewsThe Pensions Bill will require employers, beginning in 2012, to automatically enroll employees between ages 22 and the state pensionable age into a “qualifying” retirement scheme. The latest round of parliamentary debates on the bill has revealed further details about this new obligation. [July 31, 2008] Superannuation funds could experience cost savings from new regulations that allow them to issue annual reports on their Web sites rather than by printing and mailing. The changes apply to reports for the 2007/2008 calendar years and later, as long as certain conditions are met. [July 31, 2008] Requirements for disclosing companies’ executive compensation policies are expected to change by the end of 2008. If approved, the new regulations would be enforceable starting in the 2009 proxy season and would require substantial changes to how executive compensation is calculated and recorded for many employers. [July 29, 2008] Employers plan to keep pay raises steady next year. Additionally, a full one-third of companies have not made any workforce contingency plans in the event the economy continues to falter, a new study has found. [July 24, 2008] The recently approved pension system reform includes the creation of Collective Voluntary Pension Savings (ahorro provisional voluntario colectivo or APVC), with some characteristics that are very similar to the 401(k) retirement savings system in the United States. The new plan will allow employers to complement the savings of their employees through an external fund administrator. [July 23, 2008] More than 40 percent of U.K. defined benefit (DB) pension schemes are expected to have closed to future accruals within the next five to 10 years, up from the current 6 percent, according to a new survey. The proportion of DB schemes open to entrants is predicted to decrease from 25 percent to 18 percent in the next two years. [July 18, 2008] A bill that requires administrative expenses to be included when pension plan contributions are calculated could force some plan sponsors to pay higher contributions retroactively. The measure would make “technical corrections” to the Pension Protection Act (PPA) of 2006. While it passed the House of Representatives on July 9, 2008, it is still not certain if it will become law. [July 15, 2008] In an effort to reduce high employment costs and cut back on illegal work, a new law approved by the president on May 16, 2008, offers subsidies for registered employment, including easing social security insurance premium payments. [July 3, 2008] The minimum retirement age will increase gradually and some early retirement schemes will be eliminated under recent reforms that will take effect on October 1, 2008. The government’s objective is to ensure the financial sustainability of the social security system. [June 30, 2008] Although rules adopted in the last few years have paved the way to offering pan-European pension schemes, the number of employers implementing such plans is growing at a gradual pace. However, the issue still bears watching for employers, as some developments in the marketplace could speed adoption of such plans. [June 30, 2008] The Legislative Council has made a few key changes to tighten administration of the Mandatory Provident Fund (MPF) scheme, including closing a loophole related to housing allowances that had existed since the MPF’s inception in 2000. The changes, which will take effect on November 1, 2008, include significant penalties for employers who do not follow the new rules. [June 26, 2008] A proposal to create a joint Government-Industry Investment Governance Group (IGG) is likely to move investment governance issues higher up the priority list among institutional investors. This proposal is contained in a consultation document from HM Treasury, the Department for Work and Pensions and the Pensions Regulator, which also proposed certain amendments to the well-established Myners’ principles. [June 26, 2008] Paid maternity and paternity leave periods have been lengthened for parents who adopt children or become foster parents. The changes mean employers may need to update their workplace policies. [June 18, 2008] A set of trial insurance reforms approved recently in the Binhai New District of China’s Tianjin province will provide tax incentives for employers and employees that use supplementary pension insurance products. It is not clear when the trial will begin but some insurance companies have already begun to offer insurance products suitable for the trial. [June 12, 2008] Employers are required to take a greater share of social security contributions from employees’ paychecks. The change comes in response to Congress’ decision to revoke a tax on banking transactions (Contribuição Provisória sobre Movimentação Financeira - CPMF) that many of these employees had paid. [June 10, 2008] A recent court ruling in Peru allows common-law partners the right to receive a survivor pension under the public pay-as-you-go system. [June 10, 2008] |
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