The Latest Global NewsThe 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 offer 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, 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] Common law partners have had constitutional recognition since 1993. This ruling extends common-law couples’ rights to survivor pensions. [June 10, 2008] Proposed amendments to Quebec’s phased retirement legislation aim to make the plans more attractive to employees. Under the draft legislation, introduced on April 2, 2008, older employees would be able to receive up to 60 percent of their retirement pension while working and continuing to accrue pension benefits. The changes are in line with amendments to federal law approved in December 2007. [June 5, 2008] The number of employers offering workers financial incentives to better manage their health is expected to jump sharply next year, according to a new survey. [June 2, 2008] An April 2008 ruling by the European Court of Justice will require German courts to determine whether a registered same-sex partnership and a marriage should be considered equivalent and, thus, whether surviving partners should be entitled to the same kinds of survivor benefits. The court’s decision may have consequences for occupational and public pension plans both in European Union countries in which same-sex marriage and legal partnerships are recognized and in countries in which they are not. [May 31, 2008] Management of the assets held by the National Pension Fund (NPF) would be outsourced to a group of private investment managers under a recent proposal. The government hopes such a change would lead to better asset management and greater returns for employees and retirees. [May 30, 2008] Rapidly increasing life expectancy probably will drive up the contributions employers need to make to defined benefit (DB) pension plans, according to a study by the Society of Actuaries in Ireland. [May 30, 2008] Most employers in the province of Alberta will experience significant cost savings from government plans to eliminate premium payments for the Alberta Health Care Insurance Plan (AHICP). The elimination will take effect on January 1, 2009. Employers may need to review contractual commitments and collective agreements in light of the change. [May 28, 2008] A new law prohibits health coverage and employment discrimination based on genetic information about plan participants and employees and their family members. The law applies to a wide array of health programs, including retiree medical programs. As a result, employers should determine whether they are collecting genetic information and, if so, how that information is being used. [May 27, 2008] A recent court ruling in Peru gives common-law partners the right to receive a survivor pension under the public pay-as-you-go system. [May 27, 2008] China’s new Labor Contract Law, which took effect on January 1, 2008, tightened requirements for severance payments. Although the law is still new, companies need to be alert to potential financial implications, as a recent Watson Wyatt case study points out. [May 21, 2008] A majority of companies are having trouble attracting and retaining top-performing and critical-skilled employees in Latin America, a recent study reveals. However, companies in the region tend to be more proactive about adopting total rewards and goal-setting programs than their counterparts in other regions. [May 9, 2008] Two public holidays – Martyrs’ Day and Independence Day - only will occur on Mondays, as the result of a new law. [May 8, 2008] |
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