Russia:
Pension Fund has Started Paying out Compensations (December 27, 2004)
(Article in Russian)
Genadyi Batanov, the head of Russia Pension Fund on Ministry of Health and
Social Development meeting said that the Pension Fund had started paying
out money compensation to pensioners. About 15 million persons will
receive the monthly compensation payments. For 2005, the government plans
to spend about 99, 9 milliard rubles for these monthly pensions.
Russia:
Putin:In Market Economy Money Compensation is More Effective then Benefits
(December 23, 2004)
(Article in Russian)
Putin, the President of Russia talked about pension reforms during a
recent Kremlin press conference and underlined the advantages of money
compensation to people who used to have “natural“ (or public)
benefits. He said that new market economy made the old system of
government support to pensioners ineffective. Putin also noted that the
amount of budgeted money for social support of pensioners would be 6 times
more than it used to be. The President reminded pensioners about their
right to keep some “natural” benefits during 2005. Free transportation
and medical treatment are among them.
Serb Pension Law Rehabilitates WW2 Chetniks (December 21, 2004)
Serbia's parliament approved a law on Tuesday offering pension rights to
former members of the World War Two Chetnik guerrilla army, which many in
former Yugoslavia remember as backing the ruthless Nazi occupation. The
ensuing debate about whether to grant or deny pensions to older persons
based on their willing or unwilling participation in the wars of the
1940’s demonstrates the long debate between retribution and
reconciliation.
Latin America: Pension Reforms Hit Women Hard (December
20, 2004)
Neo-liberal changes to pension systems in Latin America have heightened
gender-based discrimination and will lead to greater poverty and
vulnerability among women if corrective measures are not adopted,
according to Sonia Montaño, chief of the ECLAC Women and Development
Unit. Women face higher levels of unemployment, earn lower salaries and
are often employed in the informal sector so their pension payouts are
also lower when they retire. Besides, they face discrimination on monthly
payouts which are lower because they tend to live longer.
China: It Will be the First Time of the Year
that the Distribution of Pension is on Time (December 18, 2004)
(Article in Chinese)
Beijing – According to news from China News Daily, the Labor Protection
Department held the National Labor and Society Protection Conference in
Beijing on Dec 7th. At the conference, they summarized what they had done
in the past year and laid out what will be done for the coming year.
Siling Zhen, the secretary for the Department of Labor Protection, said
that thanks to greater employment, the Department will be able for the
first time to distribute pensions at the set date.
World:
Age and security: How social pensions can deliver effective aid to poor
older people and their families (2004)
This report makes a strong case for providing universal non-contributory
pensions - "social pensions" - to older people in developing
countries. It describes how social pensions effectively target aid,
reducing the poverty of older people and the families they so often
support.
Russia, Siberia: Pensioners Apply to Human Rights
Committee More Often (December 11, 2004)
(Article in Russian)
Tamara and Vladimir Chyub are among many Russian pensioners who have
recently applied to the Irkyutsk regional human rights committee in an
attempt to defend their rights. When they came back from the little summer
house where they spend 6 months a year growing food, pensioners did not
receive the usual official re-calculations for their winter apartment’s
utilities. It means that they have to pay for 6 months of utilities that
they did not use. These attempts to struggle for their rights show how
much the conscience of Russian elderly people has changed. No longer will
they sit and wait patiently until somebody solves their problems.
Great Britain: Many Britons Sour on Private Pension Experiment (December
9, 2004)
Adair Turner, a senior Merrill Lynch banker here who once led Britain's
main employer group and has now been given responsibility for overseeing a
wide-ranging review of the country's retirement benefits, has some advice
for the Bush administration as it moves forward with its own plans to
overhaul Social Security. His cautionary words on introducing private
accounts to the old-age pension program are noteworthy because, in
essence, Britain has been there, done that.
China: A new Guangdong Province Law Will Use Monies Derived from a
Farmers’ Sale of Land to Pay for Their Pensions. (December 8, 2004)
(Article in Chinese)
The Guangdong Province Senators have proposed that the pension system for
farmers whose lands have been used should be included in the social
protection system and should be connected to the basic pension system for
urban residents. At the same time, the law should be enforced to make sure
that budgeting for the farmers’ pensions should be a priority. Among the
funds for the farmers’ pension, the government investment, which will be
from lending the lands, should not be lower than 30% of the total funding.
The communal funds, which will be from the land compensation, should not
be less than 40% of the total funding.
China: In Shanghai, Some 530,000 Farmers Participate in the Town Social
Protection System, Which Includes the Social Protection System for the
Rural Area (December 7, 2004)
(Article in Chinese)
Yixing Yuan, the director for the rural area committee, said that 80,000
farmers among the total of 150,000 farmers in the suburb of Shanghai, are
doing non-farm jobs. There are 15,000 farmers who moved to the city this
year. In the future, the farmers who are doing agricultural works will
continue to diminish. To complete the rural area social protection system,
530,000 farmers will participate in the town social protection system,
which includes the social protection system for the rural area.
Ukraine: “Aval” Explains why the Pensions were not Paid (December 3,
2004)
(Article in Russian)
The recent delay in paying pensions in Ukraine can be explained.
“Aval” says that the Pension Fund of Ukraine stopped the delivery of
money to the bank for some time. However, in reality, due to the recent
election crisis in Ukraine, opposition forces had blocked the building of
the Pension Ministry. The pensioners of all Ukrainian regions began
receiving money again since December 3 as soon as the Pension Fund
deposited its payments to the bank.
Russia: In 2005 Pensions will be Increased Twice (November 30, 2004)
(Article in Russian)
Genadyi Batanov, the chairman of the Pension Fund board has announced the
indexation of the pensions of Russian citizens. The indexation is supposed
to be conducted twice next year- in April and in August- and the total
amount of the indexation will be 233 rubles. Batanov has also promised
that the monetary compensation (the money pensioners receive instead of
public benefits) will also be indexed starting from January 2006.
Ukraine: Azarov: Government is Ready to Work Constructively with
Opposition
(November 30, 2004)
(Article in Russian)
Nikolay Azarov, the Minister of Finance, says that in spite of the budget
deficit, the planned increase in pensions in 2005 will be carried out.
“The deficit in the pension fund that totals 7,5-8 milliard Ukrainian
hrivnas will be covered by of state budget,”
assures Azarov. He recently announced his readiness to work with the
opposition.
China: Enterprise Pension Market Will Have a Balance Between Income and
Investment of Rmb 1,000 Billion by The End of This Year (November 26,
2004)
(Article in Chinese)
Hao Zhang, the vice president of Social Protection Budget Management,
which is a branch of Dept. of Labor and Society Labor Protection, said
yesterday that it is the first time that a balance between income and
investment will reach RMB 1,000 billion by the end of the year. In the
beginning of the next year, the industry pension management organization
qualification will come out. By then, the industry pension will be
activated. At that point, industry pensions will start being put into the
market.
Russia: What if They don’t Bring Compensation Money? (November 26,2004)
(Article in Russian)
Mihail Zybarov, the Minister of Health and Social Development announced
the creation of the federal register of older persons who will receive a
monetary pension instead of the public benefits. This database includes 13
million people who from January 1, 2005, will receive a monthly financial
sum instead of the free transportation, housing, and medical care that
they had previously enjoyed during the Soviet and post-Soviet period.
This article provides the official table that shows the categories of
persons and the amount of money each category will receive.
Argentina: Controversy with BNL Payments (November 18, 2004)
The Banca Nazionale del Lavoro (BNL) was told to abstain from modifying
the corresponding currency of the country of origin (Italy) of pension
payments, unless expressly requested by the beneficiaries. The BNL pays
pensions to more than 70.000 Italian retirees residing in Argentina which,
on average, collect 300 euros monthly. Authorities accuse BNL of charging
commission for currency conversions for these transactions, without having
asked the beneficiaries. Such commissions are doubled when the payment is
received in pesos. These amounts are calculated by the arbitrary currency
change of these pensions, first to dollars and then to pesos, at a rate
determined by the same bank. The BNL charged an exaggerated commission for
these conversions and the retirees were neither informed or requested such
conversions.
Uruguay: World Bank Points Out Advances in
Pensions Systems (November 17, 2004)
In many Latin American countries the percentage of the active population
that contributes to the pension system is very low, which increases the
future risk of a high number of elderly people living in poverty. This is
partly a consequence of having structured pensions systems after European
models, where the formal economy includes more than 90% of the population,
to the Latin American reality, which is characterized by having a high
fraction of workers in the informal economy. Obligatory contributions,
another feature, is in many cases estimated to be too high. Along with
decreasing the obligatory portion, countries want to increase the
voluntary contributions to retirement plans. The necessity of reforms to
the pension systems accompanied with a solid fiscal position to avoid
short-term turbulence has depended on each country, but the cases of Peru
and Chile have had a positive result in growth in volatile markets.
Venezuela: OAS Admits Claim of Viasa Retirees
(November 13, 2004)
(Article
in Spanish)
The Interamerican Commission for Human Rights (CIDH) agreed to hear the
legal case involving the defunct Viasa airline that was the most important
airline in Venezuela. The supranational Organization of American States
has been asked to protect the guarantee that Venezuela will honor the
pension requirement within a period of 60 days. The nation’s single duty
is to reach a settlement on pensions, compensations and a guarantee of
economic stability for the future of retirees. Among the most important
aspects of the decision of the CIDH, the State representative must
recognize that there was a violation of rights, even if he alleges that
they cannot be paid due to bankruptcy. It must be pointed out that there
are at least 1,200 workers who await justice and 8 retirees who already
died without seeing it.
Burkina Faso: “The Government Exploit the Misery of the Workers”
(November 11, 2004)
(Article in French)
On Tuesday, November 10th, the deputies of the National Assembly had a
meeting to adopt a proposed law to change three articles of the Social
Security Code for workers in the semi-public and private sector.
The President announced in his 2004 year end speech this increase in the
retirement age. If this increase in deposited into the banking accounts of
the state employees, the private and semi-public sector will have to wait.
China: The Standards Governing Industry Pensions are not Available Yet but
Will be Available Next Year (November 11, 2004)
(Article in Chinese)
The
Department
of Labor and Social Protection and China
Securities Regulatory Commission collaborated and released, “The Report
for Industry Pension Investment Issues,” which is simplified as “The
Report.” The Report set off
a debate among financial organizations. The Tentative Industry Pension,
the Industry Pension Management and The Report form the industry pension
policy framework.
Russia: Single Social Tax will be
Repealed but Not Very Soon (November 2, 2004)
(Article in Russian)
Arkadyu Dvorkovich, the head of the President’s Expert Commission,
reported that the Single Social Tax which currently finances medical,
pension and the social insurance systems was likely to be substituted for
insurance payments. The employers have wanted this policy for three years.
This will let them finance health care and social protection of their own
employees only. So far, the money that they pay into the system helps fund
the entire system. But this contribution is insufficient since there are
62 million working people in Russia whereas 83 million are non-workers.
So, before making the step toward applying the money to insurance, the
government will have to locate funding for current pensioners and to cover
the health treatment of the elderly, children and disabled.
Russia: Let’s Beat Seniority by Non- insurance
Period (November 1, 2004)
(Article in Russian)
The Russian government is planning to include the army service period and
1.5 year of maternity list in seniority for the account of working years
necessary to get the pension. This bill will likely be ratified before
January 1, 2005.
China: China has Increased its Pension: Those who
Retire Before the End of this Year Will Get the Increase. (October 28,
2004)
(Article
in Chinese)
The Department of Labor in China announced increases in the old age
pension. Those who retire before the end of this year (2004) will receive
the new amount. Currently local governments are putting the new pension
provisions into effect.
Chile: Treaties for Retirement (October 27,
2004)
(Article
in Spanish)
Working for a lifetime and retiring in Chile seems typical, but in an
increasingly globalized world many citizens work and register their
provisional pensions in other countries. For that reason, Chile maintains
bilateral treaties with various countries, which favor those who have
worked and paid pension fees abroad. They also apply to people who are
temporarily sent oversees by their employer, so that they can keep
accumulating benefits. The importance of these treaties comes in the case
of people soliciting their minimum guaranteed pension, after contributing
for 20 years so that their work abroad is counted.
Argentina: Retirees and State Employees will Charge to Impulse Demand
(October 23, 2004)
(Article in Spanish)
The income and pensions of December’s budget, plus the Christmas bonus
for retirees and state employees, will be paid this month. This measure
will inject $3,700 million by year’s end into Argentina’s economy.
This year retirees and state employees will claim their pension 13 times,
but will only do so 11 times in 2005. The announcement forms part of the
government’s measures to distribute the fiscal surplus, the result of a
series of adjustments without precedents. Thus far, this year the surplus
comes to 16, 815 million and it is foreseen that, even with these new
measures, 2004 will close with a savings of 18,000 million. This number is
far above the 10,800 million promised to the International Monetary Fund
this year.
China: Beijing Implements the Pension System by
Building up a Multi-layer Pension System (October 22, 2004)
(Article in Chinese)
Compared to those who stop working in the civil sector, those who retire
from industries receive a much smaller pension. Anming Sun, the vice mayor
of Beijing, reported on these issues to the City People’s Representative
Committee. He promised that the city government will figure out a new
pension system by the end of this year.
Russia:
How to Survive? (
October 22, 2004
)
(Article in Russian)
The
Ministry of Health Care and Social Development together with the Pension
Fund is working on suggestions about extending the pension age. The
demographic situation in
Russia
calls
for this change, according to some policymakers. There
are 72 pensioners for 100 workers currently and this figure will turn into
85 till 2024. Evgenyi Yasin, the head of the top level Russian economic
policy institute, claims that in 20 years
Russia
will
not be able to take care of pensioners at all. On the other hand, Leonid
Rubakovsky, the director of the center of social demography at the
institute of socio-political research argues that discussing an extension
of the pension age until 63 years (men), and 60 years (women) is not very
ethical in a country where the average life span is 58 years for men and
63 years for women.
Germany: Germany to Deregulate Occupational
Pension Funds (October 22, 2004)
In order to transfer the EU pension directives into Germany’s national
law, the German finance ministry has created a draft law to deregulate the
country’s two occupational pension funds known as Pensionskassen and
Pensionsfonds. Though under the current law, Pensionskassen may invest up
to 35% of their holdings in equities, the measure will remove traditional
restrictions on how the funds invest their holdings, as the funds will be
able to operate anywhere in the EU. The draft law “marked a milestone in
the creation of a single European financial market,” said Barbara
Hendricks, state secretary in the finance ministry.
France: Retiree Anger: They Hold a Demonstration To
be Heard
(October 21, 2004)
(Article in French)
French pensioners held a series of demonstrations on the 21st and the 22nd
of October. They organized about one hundred demo’s throughout the
country in La Rochelle, Nimes, Toulouse, Quimper, Bordeaux, Montpellier,
Grenoble, Metz, Lyon, Rouen, Le Havre and Paris. They protested against
their loss of purchasing power due to how pension increases are calculated
and against major changes in health insurance. Noting the sharp increases
in cost of housing, they demanded a pension increase. At present, retirees
make up one person in five among the French population.
China: China Urged to Address Ageing (October 21,
2004)
China has a big challenge to accommodate over the next years: its rapidly
ageing society. Indeed, by 2050 China is expected to have 400 million
senior citizens, making up a fourth of the total population. Mr Zhao, who
wrote a book about this situation, The Silent Revolution, says that China
has to care about its older persons and to find solutions to harmonize the
increase of the ageing population with the growth of the younger
population.
UK: Government Admits Women’s Pensions a Scandal
(October 21, 2004)
Alan Johnson, the UK’s Work and Pensions Secretary, called for a
“Citizen’s Pension” in order to provide the same benefits to women
regardless of how much they work. Women in the U.K. form the majority of
the poorest pensioners, because the state pension is based on National
Insurance contributions and many women often stay home to raise children
and look after the elderly. As a matter of fact, 83 percent of retired
women have an income of less than £1,000 a month, compared with 58
percent of men. While many citizen groups including Help the Aged advocate
Johnson’s “Citizen’s Pension” plan, the plan is incompatible with
the UK’s traditional pension system of means testing, which Johnson
insists to be preserved. On the other hand, experts believe that in order
to pay for the Citizen’s Pension, the state pension age has to be raised
to 67.
Peru: Kuczynsky: The Bond Payments to
Retirees is Insured (October 20, 2004) PIC
(Article in Spanish)
Pedro Pablo Kuczynski, Minister of Economy and Finance of Peru, assured
that pensions were not endangered even when the National Public Savings
Fund (Fonahpu), where the bond payment for retirees come from, will be
lacking a mayor contribution this year. The missing support comes from
Electroperú, the main generator of electricity of the country, due to a
drought and its consequent diminished on energy production. Nonetheless,
the pensions and bond payments are insured by the State and therefore,
will not be affected.
Israel: Court Rules Pension Funds Discriminate
Against Widowers (October 19, 2004)
The National Labor Court ruled that pension fund rates which alloted lower
allowances to widowers than those paid to widows are discriminatory. The
Labor Court's decision came after Uri Fidelman, whose wife Tzipora died in
March 1997, appealed to the court to receive an allowance identical to the
sum a widow would have received.
“According to the fund's Ordinance 35, widows unable to provide for
themselves receive 40 percent of the spouse's salary, whereas the sum
alloted to widowers was set at 50 percent of the wife's pension." The
judges stated that pension fund policies "are discriminatory in a
manner which is unacceptable.”
Russia: Increase in Pension, Other Funds to Fail Solve
Social Problems (October 19, 2004)
“The budgets of the Russian Pension Fund and funds for social insurance
as well as of mandatory medical insurance are to increase next year.
However, some social problems will remain.” Roundtable participants
tried to mediate and were dissatisfied about the change in the payment of
allowances for temporary disability, for example. “This should not be
done this way,”
claimed members of the Federation Council Committee on Social Policy.
UK: British Pension Crisis (October 18, 2004)
A large number of British workers stop earning incomes at a relatively
young age, with the average retirement age being 62 years old.
Accordingly, the implementation of some “radical policies” are
urgently required to solve the ongoing pension crisis in the U.K. Measures
such as substantial increases in taxation to pay for higher pensions,
compulsory savings in the private sector, and extension of the average
retirement age have been heatedly discussed by many government officials
along with Prime Minister Tony Blair. GAA will follow how the U.K. will
address providing pension support to its older citizens.
Venezuela: IVSS Requests Budget Reorganization
(October 14, 2004)
(Article in Spanish)
From the 2,7 billion bolívares assigned budget of the Venezuelan
Institute of Social Security (IVSS), 50% has already been commited and
part of the funds have been used to increase salaries and pensions, cancel
out debts and fund related associations. The daily collections are
allocated to medical uses, increasing investments in infrastructure and
improving information technology. However, the IVSS has asked the Finance
Ministry for a 5 billion bolívares budget for 2005, with the objective of
improving their work. The institute has invested more than 40 million bolívares
in renovating infrastructure, such as hospitals that did not even think
they could get air conditioning
UK: Australians Do It with Compulsion (October 13, 2004)
It has been 12 years since Australia introduced compulsory pension saving
in the private sector. Now, more than 90% of Australian workers have about
9% of their salary withheld for pension saving. In addition, forced
pension saving has definitely transformed the Australian pension market in
a positive direction, supported by the fact that their household net
saving as a share of GDP now stands at about 2% higher than it would have
been without compulsion. The U.K., facing a serious pension crisis,
examines the pros and cons of the Australian forced saving method, in
order to determine if the country should follow the similar path to
Australia.
UK: Pensions Crisis: Your Experiences (October 8, 2004)
A major government commission will report on the crisis in the British
pension system. Eight million people have no pension or savings at all.
There is also a shortfall of £27 billion in the amount people are saving
for old age. At least half of today's pensioners don't have enough money
saved for their old age and that figure could rise to more than 80% by
2050. Experts have warned that the only way to balance the books will be
for people to work further into old age.
Are you worried about the pension crisis? Do you have a story that you
would like to share? Are you facing your own pension crisis? Where did it
all go wrong? What should the Commission recommend? This article is a
collection of testimonies, of opinions about all these questions from
England.
France: Pensions : No Matter How Old You Are You, You can Learn (October
4, 2004)
(Article in French)
A meeting planner is a good way to continue to work. On your own rhythm. A
lot of people dream about it, some of them do it, but few are successful.
Most future pensioners think a consultancy would fill their desire to work
using their skills. However, age discrimination abounds and most
pensioners can find such positions on ly through a personal connection.
Very often, an experienced manager succeeds with such help. But very often
too, it stops here.
Developing Countries: Age and Security: How Social Pensions can Deliver
Effective Aid to Poor Older People and Their Families (2004)
This report from Help Age International makes a strong case for providing
universal non-contributory pensions - "social pensions" - to
older people in developing countries. It describes how social pensions
effectively target aid, reducing poverty of older people and the families
they so often support, and much more.
UK: Raise Pension Age to 67, Say Blair Allies (October 10, 2004)
The Institute for Public Policy Research and the Pensions Commission,
closest advisory groups to Tony Blair, have suggested that the retirement
age be increased to 67 by 2030, in return for the increase in basic state
pension payment. Even though the government has been opposed to the idea
of raising the retirement age, Britain now faces a serious pension crisis
in financing, and a structural reform of the pension system is needed to
solve the crisis. According to the proposal, the basic state pension will
be increased by about one-third to reach £100 a week for a single person.
The abolition of means testing tradition has also been discussed.
Russia: Statistics’ Inaccuracy (October 7, 2004)
(Article in Russian)
According to the last census, there are 145 million people in Russia.
Among them, 44 million live (30%) under poverty line. These are mostly the
pensioners. Nevertheless, not all the pensioners are living in misery.
Retired high state and military officials as well as diplomats get 9-12
thousand rubles. The article’s author suggests conducting an experiment
requiring State officials who legislate such a low pension to try to
survive on that amount for even a single month. Not a bad idea for all
decision makers on pension levels across the globe!
England: Tories to Restore Pensions Wage Link
(October 6, 2004)
The Nationwide building society’s research showed that “an estimated
four out of 10 people in the UK think they will not have enough income for
their retirement.” Following this, the Conservatives pledged to
reintroduce the link between pensions and earnings, which they scrapped
more than two decades ago. Mr Willets, spokesman of the Conservative
party, added that the biggest discrimination in the UK is not race or
religion but age. He called on charities to defend the rights and
opportunities of the older people, but didn’t explain how his party will
do the same.
Africa: Social Foresight in Africa: Pension, a
Nightmare (October 6, 2004)
(Article in French)
Depending on the country, pensions in Africa differ. Nevertheless, a
commonality exists in all African countries: the difficult conditions for
the pensioners. While it is hard to obtain a pension in the first place,
many who have one consider it a “punishment.” Pensions are small and
don’t allow for a decent way of live. After many years of hard work,
most pensioners feel the system doesn’t provide for a normal
continuation of their lives.
Japan: Corporate Pension Asset Growth Slows in Japan
(October 5, 2004)
Both the growth rate of corporate pension programs in Japan slowed down
and the balance assets held in those programs declined in the second
quarter of this year, according to Asia Times. The downward drift reflects
the pause in stock prices. As of June 30, stocks represented 29.5% of the
total asset balance, compared with the rising number of 40.3% for cash and
deposits. Should stocks make up such a large percentage of the portfolio?
Paraguay: Chile Will Investigate Pensions to Repressors (October 4, 2004)
(Article in Spanish)
Some torturers of the Chilean military dictatorship (1973-90) are
allegedly receiving special pensions for “postwar stress”. The
government has begun to investigate these allegations and their legality,
because it is questionable whether or not one can charge for having a
stressful past, even when these individuals were the instigators and not
the victims. But apparently, there are already ex-military personnel
benefiting from these special pensions which are almost double the normal
ones. The government has yet to announce plans to make corrections to the
aforementioned pensions.
UK: Is Your Pension This and Weak, or Strong and Well-Defined? (October 4,
2004)
Many large companies in the UK discourage new employees from joining a
company pension scheme in order to save on the extra costs, according a
study conducted by the Pension Institute at Cass Business School. Employer
tactics include setting contribution levels too high for newcomers,
limiting information, and holding briefings outside business hours.
Furthermore, the level of employer contributions into the new defined
contributions is far lower than their contribution into its predecessor,
making an annual cash difference of several thousand pounds. “This is
simply not fair,” says Tom Powdrill, senior policy officer at the Trade
Unions Congress.
EU: Training Could Aid EU Pension Crisis – Institute
(October 4, 2004)
Life-long training process may help solve the European Union’s pension
problem, according to the European Institute of Public Administration (EIPA).
Introduction of life-long learning program will make workers more flexible
and employable for longer, thus ultimately improving the pension
situation. In addition, Roger Hessel from EIPA says “citizens should be
given more information about their pension entitlements,” such as the
Swedish government’s efforts to send orange envelopes to inform workers
of their pension situation.
Chile: The Roads to Pension (October 4, 2004)
(Article in Spanish)
The Chilean pension system offers various options in a way that at the end
of a career of any number of years, one may end with many different
results. Opting for any one of the pension modalities offered by the
system demands a careful analysis. One bad decision may translate into a
very small retirement or even losing it all together. This system is
highly complex and its study must be done early in the career of the
individual, and not later on when retirement begins to be considered.
Retraite:
Plus de 300 000 Canadiens de 65 ans et Plus Travaillaient en 2001 (October
4, 2004 )
(Article in French)
The notion of retirement changes quickly. More and more Canadians choose
to work during their retirement. According to Statistique Canada, a lot of
persons like their job and want to continue to work. But there are others
who don’t stop or can’t stop for economic, psychological or other
reasons.
France: Le Minimum de Retraite de Base Auquel Vous Avez Droit (Le 2
Octobre 2004)
(Article in French)
In spite of they worked during several years, a lot of persons can only
have a very little pension which is now the minimum of contribution (
indeed, 40 % of the pensions are concerned by this revaluation ). It’s
important to know the minimal level of pension that the older persons can
have, and what are the variations about that.
Russia: Benefits for Money (October 2004)
(Article in Russian)
In a shocking development, Petersburg senior citizens have learned that
the government wants to convert social benefits that they now receive into
a monetary compensation—which will not buy equivalent services.
Ironically titled, “On steps towards social support of some citizens of
Petersburg,” the bill has been approved in its first reading. Russian
language readers can see the official explanations and comments from N.
Grishkevich, Manager of Petersburg’s branch of the Russia Pension Fund,
I. Timopheev, Member of the Social Commission at Petersburg’s
Legislative Assembly, and A. Redko, Member of the Health and Ecology
Commission at Petersburg’s Legislative Assembly.
Pension de Réversion : Les Raisons de La Colère
(September 27, 2004 )
(Article in French)
Published discreetly during this past summer, this decree modifies the way
of calculating pensions beginning in July 2006. This change worries many
people. Trade unions and organizations that represent older persons have
reacted strongly. They focus on the risk for the middle class widowed who
see their rights threatened.
Japan: 40,000 Firms in Pension Pullout Check (September 27, 2004)
Due to the increasing number of businesses withdrawing illegally from
their employees’ pension programs, the social insurance agency launched
a nationwide investigation into suspected cases of those illegal
withdrawals. Under the Japanese pension system, private companies with
five or more employees and all corporations are obliged to join the
program, but more and more companies are filing withdrawal applications
pretending they had closed or suspended their operations, in order to
avoid the premium payments. According to the law, they have to switch to
national pension programs when companies withdraw from the employees’
pension programs, but many of those who illegally withdraw do not do so,
and thus, employees could end up ineligible for pension benefits.
Ireland: Bank of Ireland Warns – 1M Have No Pension
Plan (September 27, 2004)
Almost one million Irish workers do not have a provision for a pension.
Though many of those have taken up Personal Retirement Savings Accounts
that was introduced in early 2003, they are not saving enough either,
warns the Bank of Ireland Life. “Consumers [need] to provide adequately
for their retirement in order to guard against the financial risks of old
age,” says Brian Sullivan, pension manager of the Bank of Ireland Life.
Global Action suggests that a compulsory public social insurance system
should replace the profit-hungry personal retirement accounts.
Colombia: Special Regimes in Pensions will only
Last until 2010 (September 27, 2004)
(Article in Spanish)
In Colombia the number of people receiving pensions is 1 million, out of
the 4 million persons who are old enough to receive it. There are 11.5
million people affiliated with the pension program of which only 5.2
million pay contributions to the pension system, out of a total 20.5
million people who are economically active. Why? Informal and irregular
collection of contributions and bad economic times have created
unemployment and affected the trustworthiness of the pension system. The
annual payout of monthly pensions is 1.1 billion pesos. Current pensioners
will not be affected by these proposed changes. According to actual
projections, their elimination of these categories will reduce the
operational deficit by 12.9% between 2004 and 2005.
Russia: The Elderly of Tver will Take Part in the 4th Congress of Russian
Pensioners Union( September 24, 2004)
(Article in Russian)
The Pensioners of Tver have prepared seriously to participate in the 4th
Congress of the Russian Pensioners Union that will take place in Moscow on
September 25. They also have high expectations to establish the status of
“the children of the war” that would be the necessary condition
towards the civil society.
Uruguay: Proposed Augmentations on Salaries for the Calculations of
Pensions for Disability and Old Age (September 23, 2004)
(Article in Spanish)
The proposed modifications to the pension system take into account if a
person asks for a pension for disability or old age (more than 70 years
old). The authorities will consider incomes of the family, both those who
live and don’t live with the prospective pensioner. The State wants to
change the criteria to decide on assistance. Until now, this calculation
was done according to strictly economic and mathematical means. Now, the
State wants to impose a means test. What will it cost the bureaucracy to
implement such a means test? Most governments find it more costly to pay
for inspectors than simply honoring the human rights of older and disabled
persons.
Russia: We Will See (September 23, 2004)
(Article in Russian)
Herman Gref, the minister of economic development and trade, guided by
“the care” for pensioners’ money suggested launching a new State
regulating agency that actually will take all accumulated money of the
Russian citizens under the age of retirement. If this project is ratified
then Russian pensioners will not have any choice concerning their money
investments. So far they still can choose between state and private
companies.
Ukraine: 11,4 mil. Citizens of Ukraine Get Pensions
that are Under the Subsistence Level. ( September 22, 2004)
(Article in Russian)
Boris Zaichyuk, the chairman of the Pension Fund of Ukraine is aiming to
help citizens whose pensions’ level is less than 284 hrv.69 kop.
that is under subsistence level. The money from the Pension Fund of
Ukraine as well as from the State Budget is supposed to be used for this
purpose.
Canada: Stats Can Finds More Women Joining Pension
Plans (September 22, 2004)
The number of women registered in a public pension plan increased by 2.4
percent in 2002 and almost reached 2.57 million, according to Statistics
Canada. Growing employment opportunities for women in the public sector
explain the increase. “Women made significant gains in public
administration, educational and health care services, retail trade and
finance, insurance and real estate,” says Stats Canada.
Russia: Highly Strict Pension (September 21, 2004)
(Article in Russian)
More then 200 elders currently live in 3,000 so-called eldercare
institutions. The author raises the question of who has the right to
control the money of these lonely, miserable old people. Currently the
Pension Fund transfers the money not to the pensioners directly. Rather,
it deposits their pensions and other resources in the eldercare
institutions’ accounts. It turns out that the eldercare administration
has the sole right to decide how and when to hand the money out. For
example, the administration of Gerontology center in Krasnodar has decided
not to give the money to the old people at all. This makes the older
residents highly vulnerable to economic abuse.
Japan: Pension Agency to Go After Deadbeats (September 21, 2004)
The Social Insurance Agency will start a “nationwide manhunt” in
October, searching for 50,000 delinquents of their public pension premium
payments. Many people who have shirked pension payments are those who have
withdrawn from corporate pension plans after quitting or being laid off,
choose not to join the national pension program though it is legally
required. The 30,000 main delinquents out of 50,000 that are deemed most
capable of paying the premiums may face losing their driver’s licenses
and passports. But do these persons have the money to pay the premiums?
Ukraine: Playing Thimble with the People or 7 Illusions
about Pensions Increase (September 21, 2004)
(Article in Ukrainian)
It is clear that the much talked about pension “increase” is nothing
but a game that the Ukrainian government plays with its people, argues
this article. The government iappears to be misleading the pensioners. The
state’s budget, for example, allows only one-time payments in September,
October and November – there will be no pension increase after these
three months. The illusion of improvement will disappear after November
president’s election.
Cote d’Ivoire: Toh Raymond: “ The Reform Has to Be Ameliorated” (Septmeber
18, 2004)
(Article in French)
In this article, Toh Raymond gives his opinion about reforming pensions in
Cote d’Ivoire. There are some advantages: first, it seems to improve the
contribution rates of the pensions for a lot of older persons. Then, it
simplifies the way to calculate a pension and creates a pension for
widowers. But there are also some inconveniences such as the conditions of
perception for the “reversion pension," especially for the
widowers.
Nevertheless, this reform has to answer to the pensioners’s needs and
expectations. It appears that the country is on the right way and seems to
be more and more interested in older persons' needs: the possibility for
the pensioners to have advances, the creation of a magazine for them, and
the celebration of the third world day for older persons in Cote
d’Ivoire.
Venezuela: Retirements in the Central Bank of Venezuela Generate Struggle
for the Presidency of the Institution (September 16, 2004)
(Article in Spanish)
The directors of the Central Bank of Venezuela approved a reform which
allows a minimum of 45 work years for men and 40 work years for women to
retire from the institution, benefiting from 60% of their salary. With
this modification, 500 employees will effectively retire including the
heads of the organization. The selection of the new coordinators and
employees of key divisions, such as monetary operations and international
investments, will have political consequences for both the institution and
the population as a whole.
UK: Employees to Have Greater Say on Pensions (September
14, 2004)
The Work and Pensions Secretary Alan Johnson promised the unions that they
will have a greater say in the running of their pension funds by ensuring
50% of pension scheme trustees being member-nominated. “Our approach is
to give people greater flexibility to make decisions about when and how
long to work,” Johnson said. He also promised the workers that the
government would not raise the state pension age to 70.Though many of his
promises are “free of new policy details,” Johnson seeks for a new
method to address ongoing pension issues of the U.K.
Argentina: There Could be 70.000 Anticipated Retirements
(September 7, 2004)
(Article in Spanish)
The initiative that is currently on the floor of the Argentinean Congress
could benefit more than 70, 000 citizens. The proposed plan provides 50%
of their pension to the currently unemployed who have contributed for more
than 20 years but, less than 30, and have reached their retirement age –
65 for men and 60 for women. Also, the proposal would ask the court to set
a date when the unemployed can access the benefits. The objective of this
measure is to avoid creating an incentive for companies to fire personnel
between 55 and 60 years of age since they are eligible for retirement
benefits.
Ukraine: The Americans Help Ukrainian Pension
Reform (September 13, 2004)
(Article in Russian)
The joint plan as for Pension Reform implementation is one of the four
projects that launched as a result of the signed Memorandum and the
Agreement of cooperation between the Ukrainian Labor Ministry and US Labor
Department. No other details available.
El Salvador: Insurance of the AFP, Additional Benefit
(August 12, 2004)
(Article in Spanish)
The System of Pension Savings (SAP) only pays based on three
qualifications: old age, disability or death. A percentage of the
contributions paid to AFP goes to cover the premiums – this complements
the pensions in case of death or disability. Statistics show that from May
1998 until June 2004, the insurance companies paid out more than $80.7
million to 13,935 beneficiaries under the disability category. Today,
there are 1.8 million persons affiliated with the pension system. Of
these, 500,000 effectively pay contributions and 50,000 are independent.
Those affiliated with the pension system pay $22.8 in insurance annually,
or $1.9 million monthly. Individuals who have low to minimum wage salaries
may not receive less than $114 (minimum pension), even though the strict
formula dictates that they be given $80, for the sake of redistribution.
Canada: Pension Plans in Canada (2003)
This document presents the results of the Pension Plans in Canada Survey
as of January 1, 2003. It gives a brief overview of changes over time in
the participation of men and women in registered pension plans, the
coverage of the labor force by these plans, membership in defined benefit
and defined contribution plans, and total contributions paid into these
plans. The document also briefly describes retirement compensation
arrangements with an analysis covering the period 1991 to 2001.
Ukraine: Don’t Offend Us by Pension-Leveling! (
September 18, 2004)
(Article in Russian)
Enakievo Local Veteran Council members have sent a petition to the
Ministry of Ukraine as well as to the Parliament expressing their
opposition to the Pension Reform. They totally disagree with the system of
pension-leveling that requires that the subsistence level (284 hrv.)
pension to include all the benefits such as WW2 medals, donors’ blood
contributions, etc., that had previously enhanced their small incomes.
Ukraine: The Prime Minister has Provided
Kirovograd with Transportation and Computers (September 17, 2004)
(Article in Russian)
If there is little else for the elderly people of Kirovograd, (a little
provincial town in the center of Ukraine) they can benefit from the
numerous strategies that current Prime Minister Yanukovich offers. He
wants to be elected president of Ukraine in November 2004. In his last
demonstration of “care” for older persons, he provided 5 trolleybuses
and 20 “Tavriya” cars to pensioners and veterans of WW2 among the
other election year gifts to celebrate the 250th jubilee of the town. He
also apologized for delays in sending pensions. No doubt, the senior
citizens of Kirovograd will enjoy the beautiful new trolleybuses that
provide their only affordable means of transportation. But, of course,
they understand the real reasons for such generosity as well as its
temporary character
Russia: The Pension Reform is Lagging Behind (September
17, 2004)
(Article in Russian)
So far, the Pension Reform in Russia that started in 2003 does live up
most people’s expectations. Less then 2% of the pensioners have
entrusted their accumulated pensions to private structures. The private
pension companies do not expect a great number of the clients this year
either. The main reason is that neither citizens nor the private
structures responsible for the reform turned out to be ready to its
practical implementation. Other countries’ experience shows that it
takes 5-6 years to understand and make a conscientious choice. Therefore,
the target date seems to be postponed for 2007-2008
China Explores Ways to Set Up Social Security Systems
For 900 Million Farmers (September 16, 2004)
(Article in Chinese)
Beginning
Sept. 1, 2004, the workers who come from the countryside and other Chinese
cities to work in Beijing will join the medical insurance system in
Beijing. This regulation means that these workers will enjoy the same
medical insurance system as Beijing residents. The employers will pay the
basic medical costs.
Russian Experts Hope to Strengthen Cooperation in
the Pension Field with China (September 16, 2004)
(Article in Chinese)
Mr.
Butanof, President of the Russian Pension Committee, noted that Russia and
China have huge populations and both nations should strengthen their
cooperation in the pension field. Both nations should learn from each
other in developing their national pensions. When the XinHua News reporter
interviewed him in Beijing, Mr. Butanov said that both nations are faced
with the same tasks – to protect the elders’ basic living costs and to
protect their rights. Mr. Butanof said that good political and economic
relationships between the two nations make a good basis for the
cooperation.
Tverskaya Region. The Pensioners are Dying in Spite of
the Pension Increase (September 15, 2004)
(Article in Russian)
According to the data from the Regional Statistics Committee, the pension
level in Tverskaya region increased by 16% during the period of July
2003-July 2004. In reality nevertheless, it is only a 5% increase
considering the hike in prices for goods and services. At the same time,
the number of the pensioners went down to 8,200 persons.
Russia: The Failure of the Pension Reform Suits
Insurance Agents Perfectly (September 15, 2004)
(Article in Russian)
By the year 2010 the insurance market in Russia that is currently
estimates 100 mil. doll. will increase up to 1 mild. dol. The main reason
to such 40% increase analysts see in the failure of the pension reform
that left Russian elderly to face the miserable state pensions.
Philippine: “Senator Files Bill For Pension
Benefits Increase” (September 13, 2004)
Manuel Villar Jr., chairman of the Senate Committee on Finance, proposed
to increase the pension benefits of Social Security System (SSS) members,
Sun Star Journal reported. In order to determine if the proposed increase
in pension benefits for SSS members is reasonable, Villar has suggested a
Senate to conduct an inquiry into the agency’s performance over the
years. “Members who have contributed longer to the SSS should receive
higher pension benefits,” he added.
Experts Suggest That China Research Separating
Retirement Conditions and the Payment (September 13, 2004)
(Article in Chinese)
Recent
reports say that the Department of Labor and Social Protection plans to
postpone worker’s retirement ages to reduce the pressure of “the white
wave” on social protection of the elders.
UK: Liberal Dems Promise Pensions Boost (September 7,
2004)
The Liberal Democrats have pledged to restore the link between pensions
and earnings for over-75s, Party leader Charles Kennedy announced.
According to the plan, single pensioners over the age of 75 would have an
extra £25 a week and couples £33.70 for their pension checks. In
addition, women who have stayed at home would be no longer penalized under
the plans, since the pension would be based on residence instead of their
history of national insurance contributions. Pension Minister Malcolm
Wicks, however, opposes those plans by the Liberal Democrats saying
“their sums don’t add up…these plans haven’t been seriously
considered” and would end up benefiting the richest of the 75 years old.
The cost of transition and the actual practice, according to Kennedy,
would be covered by measures such as abolishing the Department of Trade
and Industry, which Wicks calls “another half-baked policy from the
Liberal Democrats.”
France: The Reform of French Pensions (September 7,
2004)
Prime Minister Jean-Pierre Raffarin has launched a national debate on the
key economic reform of the French pensions system. His proposal includes
two changes: The first is to lengthen the contribution periods for public
employees from the current 37.5 years to possibly match the 40 years
required for a full pension in the private sector. The second is to open
personal retirement savings account. “The reform that is before us
requires a burst of solidarity, the overcoming of selfishness, and
collective ambition” ---Raffarin has commented.
Ireland: “Pensions Board Crack Down on PRSA
Access” (September 2, 2004)
One of only a few countries, Ireland has introduced personal retirement
savings accounts (PRSAs) along with the traditional governmental pension
system. However, many employers so far have failed in their
responsibilities to give workers access to PRSAs, and thus, the Pensions
Board is going to issue 64,000 letters to those employers, in order to
promote the compliance with their pension obligations. According to the
Board, failure to comply with their obligations is a criminal offence that
could lead to possible significant criminal sanctions. So far,
approximately 35,000 people have taken out PRSAs in Ireland. Perhaps the
Irish experience will forewarn PRSA enthusiasts about the dangers in the
US.
Ukraine: People Born in the Period of May 1927- May
1945 will have Benefits (September 10, 2004)
(Article in Russian)
The Parliament of Ukraine is planning to set the benefits for the people
born in the pre-war and during the war period (WW2). Among them are: free
prescribed medicine, 50% discount on housing, utilities payments, and free
transportation.
Russia: In Rostov Region 7 mil. Rubles are Provided for
Citizen Social Help during September ( September 10, 2004)
(Article in Russian)
Needy people in the Rostov region will get some social help in September.
Some 12,000 thousand persons are expected to apply for such assistance.
Officially, among those who have a right to this state support are poor,
nonworking pensioners and people over 80s.
China: Urgent Need for China to Adjust Pension
System, Says Report (September 9, 2004)
Within the next two decades, every 10 workers will have to support four or
more retirees in main land China, according to Hu Xiaoyi, spokesman for
the Labor and Social Security Ministry. China currently exercises a “pay
as you go” system, in which contributions from current workers are used
to pay out pensions to the retirees. However, this model has to be changed
more towards building up funds for current workers, Hu insists. Government
officials, on the other hand, have not started discussing how a change
might be made. With hundreds of millions of people working in both urban
and rural areas, the Chinese government has to decide what measures it
should take, in order to avoid future difficulties.
UK: Pensions Will Be Someone Else’s Problem
(September 9, 2004)
A heated discussion over the future of the UK’s pension systems has
followed the resignation of Andrew Smith, the Works and Pensions Minister
of British government. Whoever succeeds Smith’s position, many point out
in the article, will have to face one of the most complex jobs in the
government. With a huge funding gap of £54bn in the current pension
system and the increasing aged population, what would be the best decision
for the British government to take? Many working class pensioners see
their employers funding hefty pensions for company directors while forcing
cuts on lowly working stiffs.
Colombia: After more than a Decade the Government
Divulged that 409 Pensions had Anomalies (September 8, 2004)
(Article in Spanish)
The local administration discovered 409 pensions with irregularities that
add up to 3.747 million pesos. Three ex- deputies and one ex-manager of
the Beneficencia are under investigation. Additionally, a large number of
public sector former employees receive payments from the pensions in
question. Maria Elena Castrillón, the lawyer who led the state
investigation, has stated that she fears for her life and possible
attempts against her. The Colombian government has already made the
necessary adjustments to the pensions.
Poland: Some 2 Mln Poles Expected to Open Individual
Retirement Accounts, 32% Seek Bank Offers (August 31, 2004)
On September 1, individual retirement accounts in which Polish people may
set money aside became available in some banks and insurance companies.
Still, a poll conducted shows that 40% of those polled are undecided about
the managing institution and 48% do not know how much they would be
willing to save in those retirement accounts. In addition, only 4%
expressed their willingness to save 80% or more of the maximum legal
amount, which is defined as 150% of the average Polish yearly salary.
People in many countries, including the US, are discussing private
retirement accounts. Observers will watch this Polish government attempt
to “privatize” with great interest. Who will benefit? Who will lose?
China: World Forum on Social Security to Be Held in
Beijing (August 30, 2004)
The 28th International Social Security Association General Assembly is
meeting in Beijing, from September 12th to 18th. About 1,500 delegates
from 149 countries are attending the Assembly, with the theme of the
Assembly entitled as “Social Security: Securing Social Justice.”
Important social security problems common to many countries will be
discussed there, including social protection of migrant workers,
investment of social security, etc.
Argentina: Crisis in Security: an Indirect
Answer to Blumberg’s Critics (August 28, 2004)
(Article in Spanish)
The leaders of Mothers and Grandmothers of the May Plaza met with
President Néstor Kirchner to receive a ratification of Human Rights from
the government. Specifically, the new compensation law will cover those
who were born while their mothers were detained, or those who remained in
prison or clandestine centers with their parents during the last
dictatorship. Victims of identity substitution may also request
compensation. Both groups expressed satisfaction with the law and, relief
with the existence of processes that safeguard civil liberties. Yet, the
Mothers continue their preoccupation with kidnappings that still occur in
today’s Argentina.
Mexico: Elderly: Business or Pension? (July
7, 2004)
(Article in Spanish)
The Mexican Government’s Federal District offers loans to help citizens
start small businesses. Approximately 33% are for adults over the age of
50 and 70% of those are women. These loans represent an investment of 91
million pesos, close to a third of the total fund budget, and they have a
return rate of 82%. Also, a “White Revolution” program calls other
elderly concerns to the government’s attention. Such issues include
family abandonment, lack of medical attention and opening the doors of
schools so that older persons can finish their studies.
The Yearly Pension Income is Low and the Retirement
Age for Employees should be adjusted (September 3, 2004)
(Article
in Chinese)
Dehai Pi, the associate director for the Chinese Department of Labor and
Social Security, suggested adjusting retirement ages for all employees and
that women should retire before 55 years old. He also said that the yearly
pension income continues at a low level.
Japanese pension has about 300 billion Japanese
currency deficit (Aug31, 2004)
(Article
in Chinese)
Tokyo – A report by the Department of Labor in Japan released
information that the Japanese pension system incurred a 300 billion
Japanese currency deficit between April 2002 and March 2003.
U.K.: “Pension Panel Opts For Forced Saving”
(August 30, 2004)
A government pension panel is planning to file a recommendation that says
pension savings should be compulsory through workplace schemes. Currently,
employees can choose whether or not they want to join an occupational
pension scheme. But “compulsion [is] necessary to help plug the £27bn
gap between what is saved and what is needed for old age,” according to
Mary Francis, director general of the Association of British Insurers (ABI).
The ABI survey reveals that only 26% of working adults in U.K. support
compulsion while 17% oppose to the idea. The recommendation is due to be
submitted by the end of this year.
Nigeria: Workers Applaud Pension Scheme
Computerisation (August 26, 2004)
The Nigerian government has initiated the computerization of the pension
scheme, in order to reduce bureaucracy to a minimal level. With
computerization, information such as workers’ names, fingerprints, and
photographs are now stored electronically, and local governments can log
on to the computer to access the necessary information through the
Internet. Most Nigerian workers, according to All Africa, are so far
willing to cooperate with the system, since many have been worried about
the “genuineness and transparency” of the pension scheme. The
computerization was realized as a part of government’s efforts to
“ensure that workers in the state have a future they can look up to.”
Russia: Minimal Wages, Pensions to Be Increased in
Russia in 2005 (August 23, 2004)
The Russian government is going to increase its pension payments by 250
roubles in 2005, ITAR-TASS News has reported. According to Minister of
Public Health and Social development Mikhail Zurabov, the proposed
increase is because of the increasing inflation rate, which is estimated
to stand at 7.5-8.5 percent in 2005. As a result, pensions will exceed the
subsistence level of Russian workers by about 5-6 percent.
India: UN Pension Fund Gets FII Status (August 22,
2004)
The United Nations Joint Staff Pension Fund (UNJFPF) has registered with
the Securities and Exchange Board of India, in order to operate as a
foreign institutional investor (FII) in the country. As on December 2003,
UNJFPF had assets over $26 billion, which were invested in 46 different
countries including the emerging markets. Along with UNJEPF, many foreign
funds have expressed interest to invest in India in recent years,
including California Public Employees’ Retirement System (Calpers) which
is the largest public pension fund of the United States. It seems like the
Indian capital market has started generating a great interest among
foreign investors.
Zambia: Two Pension Funds Under Threat (August
26, 2004)
The existence of Zambia’s traditional pension systems -- the Public
Service Pensions Fund (PSPF) and the Local Authorities Superaanuation Fund
(LASF) --have been threatened because of a drastic loss of membership
since the National Pension Scheme Authority (NAPSA) was created in 2000.
According to the NAPSA Act, all new civil service employees except for
teachers and security personnel are to affiliate to NAPSA. Many, including
the World Bank Economist Aniruddha Bonnerjee, demand the government give
more careful coordination between NAPSA, PSPF and LASF especially in terms
of funding. Others, like the International Social Security Association
representative, point out that, in order to make profit off the pension
systems, public pension funds of Zambia need more improved investment
techniques. It also appears that government officials may have interfered
with pension investments.
Australia: Super Fund Shortfall Fears Grow (August 26,
2004)
As a result of growing shortfall in pension funds, more and more
Australians are considering working longer than the so-called retirement
age, according to a survey conducted by the Association of Superannuation
Funds of Australia (ASFA). In a few decades, the aged population in
Australia is estimated to rise to 25% of the total population, which means
there will be only 2.5 workers for everyone aged 65 or over, in order to
fund the government pension. More people will face “a gap between their
retirement savings and their desired lifestyle in retirement,” according
to ASFA pension executive Philippa Smith.
Czech Republic: Czechs Eye Mid-2006 For Pension
Reform (August 26, 2004)
The Czech Parliament approved a proposal for a government pension reform
that is to be prepared by mid-2006, IPL reported. In the new system,
individual income and pension contributions are going to be reflected
more, while the existing pay-as-you-go system will be maintained. In
addition, the new government wants to encourage volunteer pension
insurance and include employee pension schemes. The new system “should
bring financial stability and long-term functionality,” commented Martin
Jahn, Vice Premier for Economic Issues. The fund to cover the transition
costs to the new pension system, according to Czech Finance Minister
Bohuslav Sobotka, will most likely be financed by privatization revenues
and dividends from large companies. This privatization strategy may prove
illusory as the companies insist on profit margins that a public system
does not require. For certain, sharp disparities in income levels between
retirees will occur.
Ukraine: Long Waited Duty Stimulus Has Shown Up
(August 14, 2004)
(Article in Russian)
While overcoming the problems that brought the pension reform, Ukrainian
pensioners have suffered from humiliating and inhuman service at the local
branches of the Pension Fund of Ukraine. Vitalyu Leonidovich Avgustimov
was trying to appeal against the legitimacy of sadly known resolution of
the cabinet № 1783 from November 20, 2003. He was able to find
neither justice in Kiev Pecher Court nor in the Capital Courts of Appeal.
Still, the Supreme Court of Ukraine and The European Human Rights Court
are waiting to intervene in the problems of the Ukrainian elderly.
Ukraine: Yushenko has brought to Shame to the
Yanukovich Pension Reform (August 12, 2004)
(Article in Russian)
Viktor Yushenko, the presidential candidate has criticized pension reform
by the Yanukovich government for creating hardship for the elderly people
who have been working for their whole life. He also called the tradition
of giving some extra money to the pensioners before the election campaign
a “disgrace.” Yushenko suggested that the criteria for the pension
should be continuity of employment and the salary level received.
Taiwan: Activists Demand New Labor Pension Plan Be
Postponed (August 12, 2004)
Worried about the negative outcomes that may be brought about to Taiwanese
workers, Labour groups have petitioned the government to postpone the
introduction of its new labor pension plan. According to the new plan,
once an employee reaches the age of 60 after working for at least 15
years, he or she will receive a monthly pension payment. “Salary cuts,
lay-offs and outsourcing” that will be used by companies to combat this
new pension plan, the Association for Middle Aged and Senior Employment
indicates, will be very disadvantageous to the 3 million Taiwanese elderly
who are currently unemployed. In addition, according to the 104 Job Bank
chairman Rocky Yang, between 5 and 10 percent of small and medium
businesses may end up closing as a result of increased labor costs brought
on by the new system.
Japan: Gov’t To ‘Force’ Job Leavers To Join
Public Pension Program (August 12, 2004)
Beginning the next fiscal year, the Japanese government will make it
compulsory for job leavers to join public pension programs. The Ministry
of Health, Labor, and Welfare and the Social Insurance Agency decided to
do so, in order to increase the number of paying policy holders which will
eventually improve the status of the public pension fund. While under the
current system, people who failed to sign up for the pension program after
the agency notifies them twice will be ineligible for future benefits, the
new system will automatically register them and mail them an invoice for
national insurance payments. Furthermore, low-income earners can be exempt
from the payment obligation and still can receive benefits, if they join
the program. While many call for a drastic pension reform of Japan, we
will see if this reform was a right action for the government to take.
Nigeria: Military Pension: FG May Seek N15Bn
Supplementary Budget (August 11, 2004)
In the country of Nigeria where accumulation of arrears for military
retirees has been a big issue, Minister of State for Defense Roland
Oritsejafor recently announced that the government is planning to present
a N15 billion supplementary budget at the National Assembly. If the plan
is carried out, the seven months’ arrears of military pensions will be
finally offset. Oritsejafor also expressed his confidence in the newly
proposed contributory pension scheme, saying that when it comes into
operation, “all the problems encountered by his Ministry with regards to
military pensions would be a thing of the past.”
U.K.: Ombudsman Poised To Launch Inquiry Into
Pensions Advice (August 5, 2004)
Following the allegations that the U.K. Treasury had been falsely advising
consumers saying that their retirement savings were guaranteed by
legislation, the Parliamentary Ombudsman decided to launch an inquiry into
the accuracy of Government advice over the security of occupational
pension schemes. The investigation is estimated to last up to a year, and
according to the campaigners, the Government may have to face as much as
£2.2bn to cover the compensation payments for those who lost all or some
of their occupational pension savings after their companies went bankrupt.
The inquiry is to be launched in early September.
Japan:
Public To Get Notice Of Pension Payment Status (August 11, 2004)
Following Sweden, the Social Insurance Agency of Japan will begin mailing
out records to the taxpayers, as to how much they can expect to receive
from the government pension programs after the retirement age. The age
limit to access this information was lowered from those aged 58 to 55 in
January 2004, but beginning the fiscal year of 2008, everyone including
non-payers will be able to receive this reliable information. These
changes in pension-payment-notification system, according to Asahi Shimbun,
were made because most people want to make sure if they have kept up with
their pension premium payments, and more importantly because the agency
wants to raise public awareness, particularly among non-payers, about the
need to pay into the pension system.
India: Indian Pros Lose Security Benefits in US (August
10, 2004)
While many temporary Indian workers in the U.S. are obliged to pay for
Social Security retirement benefits through deductions from their
paychecks, most of them get zero benefits as they return to India before
they become eligible for the benefits. “The US issues only temporary
work permits for 3-6 years,” a Bangalore-based software engineer from
India, who lost six years of Social Security contributions, points out the
unfairness of the system. His claim is understandable since American
workers in India, on the other hand, are eligible to have their pension
contributions back when they leave the country. Manmohan Singh, Prime
Minister of India, is to discuss this issue with the U.S. federal
government when he visits the States in September.
Philippine: Villar: Gov’t Can’t Afford P15B Early
Retirement Program (August 10, 2004)
The government of Philippine is facing a serious financial crisis. They
are planning to borrow P15 billion (approximately US$270 million) from the
World Bank in order to fund its early retirement program, but Sen. Manuel
Villar points out that the government already has a lot of foreign debts
and it “needs to save and reduce the budget deficit.” He has also
suggested a series of program reforms, including reassignment of
governmental jobs and restructuring of government corporations.
Russia: Russia Welfare Bill Sparks Anger (August 3, 2004)
About 200 Russians have been protesting near the Duma against President
Vladimir Putin’s welfare system reform. Under the plan, the Soviet-style
system of automatic benefits, such as free transport and subsidized
medicine, would be replaced with cash compensation for pensioners, the
disabled, and war veterans. However, even those who receive these new cash
benefits are against the reform, saying that “the new law would make
them worse off” because of the possible inflation and instable Russian
economy. A large portion of Russian population is increasingly becoming
Putin’s opponents.
Mexico: Proposed Mexican Social Security Overhaul
Sparks Violent Protests, Late-Night Senate Debate (August 5, 2004)
More than 11,000 Mexicans blocked main avenues across Mexico’s capital
and caused huge traffic jams, in protest over the governmental proposal
for changing Mexico’s Social Security Institute’s pension system. The
proposal would prohibit the institute from using its operating budget to
fund pensions and require that retirement funds be financed entirely by
deductions from the pay checks of its employees. “The government’s
intention is to privatize social security and break all the unions,”
union representative. Beatriz Arenas said furiously at the protest site.
Lower House has already approved the proposal, and if the Senate votes in
favor, it becomes law. Stay tuned!
Ghana: Presidential Commission On Public Services
Pension Schemes Inaugurated (August 4, 2004)
Responding to the Teachers and Civil Servants’ public demonstrations and
pension worries, John Agyekum, president of Ghana, addressed the
country’s need for a new Pension Scheme at the August 4th Presidential
Commission on Public Service Pensions Schemes at the Castle, Osu. Agyekum
demanded that the Commission take a comprehensive look at the current
workers’ conditions on salaries and wages, and then to come up with
recommendations to the government as to what needs to be done to implement
a new Pension Scheme. The Teachers and Civil Servants, a Ghana’s leading
civil organization, will follow the proposals closely.
Russia: Pensions To Increase By 130 Roubles On
Average; The Rise Will Embrace All Pensioners Or 38.2 Million People
(August 1, 2004)
Russian pensions will increase by 130 roubles (approx. US$4.50) on
average, according to the Russian Pension Fund. This means that the
average Russian pensioner will receive 2,195 roubles (approx. US$75.00) a
month to support their basic living expenses. This pension reform is
particularly aimed to raise the pensions of those with handicaps and
veterans who served in the Great Patriotic War.
Japan: Most Japanese Distrust Pension System: Survey
(August 1, 2004)
Japanese are putting intense pressure on Prime Minister Junichiro Koizumi
to reform the national pension structure. According to the survey
conducted by Yumiuri Shimbun, up to 71% of eligible voters expressed their
distrust toward the current national pension system of Japan. Though the
Koizumi cabinet endorsed reforms in June, the bills’ primary objective
would add premiums and cut benefits over the next decade. The public and
the opposition parties oppose this idea. With the skyrocketing number of
the elderly in the national background, what can Koizumi do to regain the
trust of citizens?
Aiming to Perish the Pension Reform, Government Made the Pension Fund of
Russia (PFR) Monopolistic (August 2, 2004)
(Article in Russian)
The Government of Russia made the Non-state Pensions Funds (NPFs) very
unattractive to the retired citizens. Existing laws will never let NPFs
compete with the Public Pension Fund of Russia (PFR). If retirees want to
transfer their accumulated pensions to the private (non-state) pension
fund, they must pay 24% of this amount to the Government! Not a good deal!
Italy: Italy To Raise Retirement Age Under Pension Reform (July 29, 2004)
By a margin of 333 positive votes to 148 negative and one abstention,
Italian Prime Minister, Silvio Berlusconi, won a vote of confidence to
overhaul Italy's pension scheme. Under the new bill, Italian workers will
now either have to pay social security for 40 years or be older than 60
and have paid social security for 35 years to be eligible for full pension
benefits. This is a marked change from the current pension bill which
qualifies Italians for full pension after 35 years if they are older than
57. Prime Minster Berlusconi has argued that the reform is a crucial step
towards meeting EU Stability Pact rules.
Japan: Vision Necessary for Future Social Security
(July 27, 2004)
Japan is taking several steps to ensure that a proportionately large
growth in the aging population does not adversely affect its economy. A
conference was held in Tokyo recently to encourage dialogue about the
future of the country's Social Security. The forum was appropriately
titled, "Vision for an Aging Society with a Declining
Birthrate-Overcoming the Generational Conflict of Interest" and was
sponsored in part by the Tokyo Colloquium and the Yomiuri International
Economic Society. Among the distinguished panelists were; Japan project
manager of the Swedish Care Institute, Gustav Strandell; Professor
Toshiaki Tachibanaki of Kyoto University and House of Representatives
member, Yuji Tsushima.
UK: Borrowing To Solve The Pension Fund Problem
(July 27, 2004)
For an increasing number of pension schemes in crisis in the UK the
proposed solution seems almost as precarious as the problem itself: borrow
money to pay debt. WH Smith is the latest company in the UK to join the
bandwagon of organizations trying to plug the hole in their pension bucket
with newly-borrowed funds. Kate Swann, Chief Executive Officer for the
company, agrees that, "in reality, it is just moving money from one
part of the balance sheet to the other." For the time, however, there
are no other solutions. WH Smith has a pension deficit of estimated £220
million (US $400 million).
Australia: Property Threat To Pensions (July 21,
2004)
Maybe it does not pay to keep with the Joneses after all. In another of
several crackdowns by the Australian government in recent weeks, old-age
pensioners and other welfare recipients who own a second house may lose a
portion of their benefits or have to forfeit them altogether under the
Howard Government’s new assets scheme. Owing to Australia’s so-called
property boom, authorities have indicated that for many pensioners, the
value of assets such as a second home may supersede the pension cut-off
point and cause them to be eligible for benefits they currently receive.
President of Australia’s Pensioners and Superannuants Association,
Morrie Mifsud, has made clear his strong opposition to the possible
changes, and maintains that, “not everyone who has a second home is
rich. Some people are assets rich but finance poor.” But, how does a
government balance the needs of poorer older persons with those who have
been fortunate enough to acquire the “wealth” of a second home?
Zambia: 90,000 Pensioners to Lose Their Benefits
(July 20, 2004)
The Zambian pension crisis graduated from bad to worse for 90,000
retirees. The Public Service Pension Fund (PSPF) has acquired a debt of K1
trillion (US $205 billion) and has found no foreseeable way to eliminate
it. Beginning next year, the organization will be unable to pay close to
100,000 pensioners what it owes them. Though the Fund will be restructured
between 2004 and 2008, there appears no clear-cut plan to erase debt.
The Public Service Pension Fund borrowed K20 billion towards debt
consolidation from the Finance Ministry but is now unable to account for
the money. What a violation of public trust when the government borrows
recklessly without means to re-pay the loans.
Jamaica: We Need More Money! (July 20, 2004)
There appears to be no easy solution for the pension crisis among retired
teachers in Jamaica. President of the Retired Teachers Association, Leo
Williams, recently offered an impassioned plea to the Jamaican government
to help the nation’s retired teachers and, in particular, those who
stopped working before the pension law reform in 1997. “Teachers who
stopped working between 1986 and 1995 [are] at a disadvantage,” notes
Williams, because of the diminutive pensions they receive. The average
monthly allowance for persons who retired prior to 1995 is between $10,000
and $13,000 (US$164 -$213). For those who retired after 1995, the monthly
pension is upward of $20,000 (US$ 328). The Jamaica Government
Pensioners’ Association (JPGA) and Jamaica Teachers' Association's
Co-operative Credit Union both contribute heavily to pensions funds but
both organizations maintain that it is merely a drop in the bucket. As
many groups continue to advocate for pension increases, it is clear that,
in many respects, what is needed is to, "analyse the past, appreciate
the present, [and] anticipate the future.”
Russia: Russian Pension
Funds To Merge (July 20, 2004)
In compliance with reforms approved by Russian President Vladimir Putin,
Vneshtorgbank and Vnesheconomicbank, two of the country’s leading
financial institutions, have merged their pension funds. The union is
expected to prove beneficial for both parties involved, in particular
because of Vneshtorgbank’s extensive experience with pension funds on
the world market. The proof will be in its performance and the eventual
payouts to Russians who lost their benefits after the change from the
Soviet Union’s government.
Namibia: Request To Retire At 50 (July 20, 2004)
What social factors, if any, should influence the retirement age? One
Namibian writer argues that the prevalence of HIV/AIDS and the high death
rate in Namibia are reason enough to lower the country’s retirement age
from 55 to 50. Persons may continue to work even after 60 years old but
should not be required to. A lower retirement age may also mean that
younger persons will enter the job market in larger numbers at an earlier
stage. In the end, this may prove beneficial to Namibia both economically
and socially.
Australia: Pensioners Lose Concessions (July
20, 2004)
The Australian government has rescinded some 34,000 concession cards in
what is being dubbed, “an unprecedented crackdown on Australia’s
elderly and disabled.” The country’s Social Security department
recently reassessed the status of over 37,000 pensioners and has since
argued that an estimated 15,400 retirees have been receiving $39 million
that they were not entitled to. The concession cards qualify holders to
benefits averaging between $750 and $1000 per annum and the change is
expected to cut government expenditure by $241 million over the next four
years. The transition will undoubtedly be very difficult for much of
Australia’s elderly population.
Scotland: CBI Calls For Raising Of State Pension And Retirement Age (July
19, 2004)
Scotland has joined the league of countries searching for a solution to
their pension issues. Recently, the Confederation of British Industry's
(CBI) Pension Strategy Group suggested that the retirement age in the UK
be raised in stages to 70 years old. The proposal is one of several
changes recommended by CBI to help the UK meet its current pension
challenges. The raise would take place over the course of ten years and
would significantly reduce the state's dependence on means-testing
low-paid workers.
Poland: Poland Prunes Costs, Limits Regular Adjustments To Pension &
Disability Benefits - News Analysis (July 19, 2004)
Poland is taking several steps to eliminate national debt. The latest such
proposal to gain approval from parliament prohibits the systematic
adjustment to pension and disability benefits and also limits indexations
to one every three years or whenever cumulative inflation is 5 percent.
The reform is expected to increase overall pension payouts over the next
six years and save the state budget PLN 8.9 billion (approximately US$2.4
billion) between 2005 and 2007. Talks are currently underway to reform
farmer social security and to assess Poland’s public finances.
Nigeria: 17 Private Sector Unions Reject Pension
Scheme (July 19, 2004)
In a somewhat gutsy move, seventeen unions from the Nigeria Labour
Congress (NLC) opted not to participate in the country’s new pension
reform bill. In a closed meeting at the national secretariat of the Food
Union, the 17 groups decided to show their opposition to the reform by
refusing to take part in it. The unions attest that the new reform does
not serve their interest and, according to Bright Anukuru, leader of the
private sector group, “it does not have a future for our people. The law
does not take our interest into consideration. What it did was to devalue
the already existing scheme to make us poorer.” President Olusegun
Obasanjo’s administration received a 30-day ultimatum from the Unions to
withdraw the law before its passage.
Colombia: Colombia's Uribe To Present Legislation To
Cut Pension Deficit (July 19, 2004)
The number of pensioners living in Columbia has grown but the money
available to support them has almost disappeared. Recent reports indicate
a steady decline in government resources available for pensioners so much
so that it is feared that they may be fully exhausted within the next
month. Columbian President, Alvaro Uribe has proposed to cut expenditure
to help resuscitate the Country’s dying pension scheme and will ask
congress for a constitutional amendment to cap monthly payments at 9
million pesos (US$3300). In addition, Uribe is also advocating for a 4
percent sales tax on commodities such as food as well as taxation on rent.
The patchwork system required a state subsidy to private pensions, a
pension for political figures 50 times more than the least pension, and
permitted an early retirement age. Hopefully, the new system will be fair,
universal, and sustainable.
Australia: 'Lack Of Vision' In Pension Reforms
(July 19, 2004)
Opposition Employment Services spokesman, Anthony Albanese has cited the
Australian government’s response to the pension crisis as evidence of a
greatly “misunderstood” problem. Reports from Australia’s Bureau of
Statistics indicate that 1.6 million Australians aged 45 to 64 years are
either unemployed or not in the labour force. Additional data also
suggests that a significant portion of older Australians have been forced
into early retirement because of job losses. Albanese concludes that when
the government finally decides to put measures in place to counter the
unemployment and pension crisis, it may very well be too late.
Japan: Pension Bills Littered With Errors (July
17, 2004)
The Japanese government dealt another blow this week as it is revealed
that the recently passed and widely unpopular pension bill is “littered
with errors.” Though authorities insist that the flaws are minor and
will not necessitate a review by the Diet, the ministry has expressed
outrage at the findings. All responsible parties will be forced to take a
10 percent pay cut for 4 weeks as reproval for the errors. The new pension
bill proposes to increase pensions every year until 2017 while
simultaneously cutting benefits to cut expenditure. Most critics of the
reform argue that it is both burdensome and
inconsistent with the country’s changing demographics.
Canada: Canada May Introduce New Retirement Savings Plans, Post Reports
(July 15, 2004)
Talks are now underway in Canada to introduce a tax-free retirement
savings plan. The scheme, which was first discussed during the last fiscal
year, would be fueled primarily by after-tax investments and returns from
interest payments. All subsequent withdrawals would be tax-free. It has
been rumored that Canada’s Finance Department supports the proposal and
believes that it would prove highly profitable for some Canadians and the
Canadian economy alike. What are the equity issues? Will rich older
Canadians simply get richer and avoid taxes and let the poor elderly stay
poor—or get poorer— in old age? Aren’t taxes supposed to support a
better life for all?
Trinidad And Tobago: TSTT Playing Games On Pensions
(July 14, 2004)
One of Trinidad's leading corporations, Textel Communications, has failed
to deliver on yet another promise to pay overdue pensions to former
employees. Court appointed spokesman for the group, Eugene Lopez, reminded
Communication Workers Union (CWU) members of the Chief Justice's 2000
response to the issue, "the company could afford to wait till all the
Textel employees died and then keep the surplus." An irate Lopez also
argued more recent talks with Textel has yielded an equally disconcerting
response.
India: Gov’t To Launch Savings Scheme For Elderly
On Aug 1 (July 14, 2004)
India’s elderly population will soon have another savings scheme to
choose from. The Indian government has promised that as of August 1, a new
five-year pension plan will be put into effect. The tax-deductible plan
will be available to persons 60 years of age and older and will penalize
pensioners for premature withdrawal. Smaller plans are traditionally very
popular in India and will continue to be sold in many non-fiduciary
institutions.
India: Pondy Govt Hikes Old Age Pension (July 13,
2004)
Following deliberations lasting two days, the Congress government in
Pondicherry, India has okayed an increase in the old age pension. The
pension will go up to RS 225 for retirees and to Rs 425 for physically
handicapped persons. Talks are also underway to renew the inclusion of
destitute women in the pension bill. Adjustments will be made to the
2004-05 budget to accommodate the pension increase.
Macedonia: The Number of Social Security
Beneficiaries Rapidly Increases (July 13, 2004)
More people receive Social Security benefits, reports the Macedonian
Ministry of Labour. The increased distribution of payments from 61,700
households last May to 64,832 households for the same period this year is
largely the result of job losses. In Macedonia, employment payments last
between 3 and 14 months, depending on the duration of work and experience,
after which Macedonians are eligible for Social Security benefits. The
recent closure of factories and mines contributed to the country’s
mounting unemployment. The Ministry estimates that by the end of this year
the number of unemployed will grow to 65,000.
India: Government Modifies Pension Scheme For Widows (July 13, 2004)
The name of India’s Pension’s Scheme for Women is not the only thing
being changed by the organization. The newly titled, ‘Rehabilitation
Scheme for Widows,’ has resolved to eradicate the loopholes in its
current scheme and discontinue benefits to some 27,000 unqualified
recipients in the future. Other extensive changes to the scheme include a
policy ratification to exclude divorcees and destitutes (women separated
from their husbands but not divorced) from the plan as well as mandatory
training for all beneficiaries in a government-recognized trade. The
scheme’s management will also undergo a significant shake-up. Under the
revised plan, the Directorate of Social Defence will be replaced by the
Revenue Department as the primary authority in the implementation of the
scheme’s policies. Will the Revenue Department want to keep costs low or
help women?
Australia: Retirement Blues For Bosses (July 10,
2004)
A recent study reveals that Australian businessmen are "afraid"
to disclose information about their retirement to coworkers. Data gathered
from several companies suggests that fear of marginalization drives the
hush-hush attitude among executives. Several of the study's participants
describe the findings as related to the unavailability of part-time or
casual work for employees in transition to retirement.
Japan: Painful Pension Reform In Japan (July 9,
2004)
The state of Japan's pensions may tilt the upcoming elections in favor of
the country's opposition Democratic Party. Prime Minister Junichiro
Koizumi's has faced increasing unpopularity through his handling of the
nation's pension scheme, which many retirees fear will force them to leave
retirement to take up part-time jobs. Koizumi's proposal maintains that in
order to boost Japan's two largest pension plans, the government must
reduce payments and raise contributions. Koizumi's Pension Reform Plan has
been the cause of several protests and has cost him the support of voters
such as 62-year old Terubumi Nakada who fears that the new scheme will rob
him of as much as one sixth of his pension.
Ecuador: Ecuador's Social Security Board Members
Appeal Their Removal (July 9, 2004)
Ecuadorian seniors continue to protest the nation's diminutive pensions.
Despite the recent approval of a nationwide pension increase and a
"shake-up" of the Social Security board, Ecuador's elderly are
still pushing for more to be done. Policy makers are meeting with
demonstrators in hopes of reaching a tentative agreement and quelling the
uprisings. Former Social Security board members who are also dissatisfied
at the unfolding of events in the pension crisis have appealed their job
termination but an equally frustrated superintendent has refused to
retract his decision.
Japan: Wealthy Retirees Boost Demand For Luxury Goods
(July 9, 2004)
Japan's moneyed elders have mastered the art of living well and in style.
The recent upsurge in the purchase of luxury goods in Japan has been
directly tied to the increase in the number of wealthy seniors. One report
indicates, for example, that the average passenger on the Tokyo-based
Asuka, 35, 000 yen (US $319) per day cruise, is 70 years old. The increase
in the sale of luxury goods such as the notoriously pricey Maserati
Quattroporte car and Audemars Piguet watch has also been attributed in
part to wealthy retirees. As the demand for luxury goods grows, businesses
such as American Express seek to capitalize on new demands by introducing
products to make it easier for individuals to spend large sums of money.
El Salvador: New Retirement Law (July 8, 2004)
As of 2005, Pensions will have a new face in El Salvador. The Legislative
Assembly has approved a retirement law that will equate eligibility to
retire with age and years of service rather than solely the latter. Under
the current law, Salvadorean workers are able to retire after 30 years of
service regardless of age. The new law, however, stipulates that a
Salvadorean retiree must have completed at least 25 years of labor and be
a minimum age of 60 for men and 55 for women.
Israel: Treasury Praises Histadrut's Change On
Pension Fees (July 8, 2004)
Israel's Histadrut labor federation has decided to cancel a policy that
would subject pensioners to additional member fees. The fees, which would
be directly deducted from member accounts, will be replaced by a free
support service. Attorneys representing the pensions and insurance company
announced, "a substantive decision has been made that any money
coming in from management fees will be rolled back to members, without
taking any sums out." The initial proposal to charge retirees member
fees is believed to have been a part of a larger scheme by Histadrut to
profit from member pensions.
Italy: Diliberto: Berlusconi Cuts Pensions And Taxes
For The Rich (July 8, 2004)
In an apparent bid to regain "consensus," Italian Prime Minister
Silvio Berlusconi has embarked on a scheme to bring about large scale tax
cuts. The country's opposition leaders argue, however, that it is too
late. PDCI Secretary, Olivioero Dilberto, contends that, "given the
current state of affairs, Mr. Berlusconi should really resign from his
office and make room for early elections." Dilberto goes further to
suggest that the proposed tax cuts will only benefit society's elite and
will bring Italy one step closer to becoming a
"post-feudalistic" country.
Nigeria: Implementation Of New Pension Reforms
Begin (July 8, 2004)
Nigeria has put into effect the recently passed Pensions Reform Bill.
Officials this week marked the introduction of the scheme by stressing its
benefits and long term goals for implementation. Several of the nation's
banks will participate in the scheme though many others that are unable to
foot the N500 million initial deposit will be denied an operating license.
All policies in the Pensions Reform Bill are effective this month.
UK: Pensions Rethink Urged For Younger People (July
6, 2004)
Britain's biggest pension advisers have suggested that younger people
switch back to the state pension. They argue that recent changes in
government strategy geared towards increasing retirement income from
private savings and reducing state contribution to pension funds, mean
that it may no longer prove advantageous to avoid state schemes. Insurers
are also advising older persons to reconsider joining government schemes.
China: It Will Take A Long Time For China To Marketize
The Current Pension
System (July 6, 2004) (Article in Chinese)
A report that investigated an effective "free market" pension
system published on July 2nd attracted a lot of attention. The Division of
Financial Research at China National Development and Research Center
published the report. However, China is in the process of changing from a
public to a market system but the transition is not complete. A "free
market" requires laws to assure fairness. China needs to discuss
further how a market-based pension will be developed in China.
Japan: Baby Boomers' Retirement Poses Problems (July 6, 2004)
In 2007, the first generation of Japan's baby boomers will turn 60. The
group, which currently accounts for 5 percent of Japan's population and
1.09 million of the country's workforce, has many economists fearing that
their retirement will seriously damage the Japanese economy. Predictions
so far estimate a 7 trillion yen drop in earned income, as well as a
large-scale decrease in consumption and a 16 million yen fall in the
country's gross domestic product. Several tactics have been suggested to
help curb possible damage. There are others still who speculate that
detailed planning, pension reform and graduated reduction in employment
will wholly prevent negative impacts on the country's economy.
Germany: German Pension Measures Insufficient -
Report (July 6, 2004)
German President and former head of the International Monetary Fund, Horst
Köhler, contends that Germany's welfare state has not been adjusted to
meet population ageing. The comment comes in the wake of the IMF's latest
publication on Germany in which the country's statutory retirement age and
long-term unemployment among elderly were cited as cause for "major
concern." The report went on to highlight several positive changes in
the Germany economy such as the introduction of hedge funds, asset-backed
securities and inflation-indexed government bonds.
Russia: Zurabov Says Pension Rise Is Affordable
(July 6, 2004)
The Russian pension system continues to receive a major boost. On April 1
the pension indexation grew to yield a rise of 125 rubles ($1 equals about
29 rubles) of the average Russian employee's pension. Another increase is
likely, and the country's Minister of Health and Social Development,
Mikhail Zurabov, has dispelled some doubts by publicly stating that the
raise will be affordable. This year, the minimal pension in Russia went up
to 944 rubles and the maximal pension increased to 2,243 rubles.
Turkey: World Bank Advises on Social Security
Reforms (July 5, 2004)
Turkey's economy will not be affected by the US Federal Reserve's 0.25
percent increase on interest rates, reports World Bank's Turkey Director,
Andrew Vorkink. The comment comes after Vorkink's announcement of Turkey's
"good work" with its social security reforms. Turkey, which
boasts one of the highest economic growth trends of the world's developing
nations, is also expected to attract increased foreign investment in the
coming year.
UK: Government 'Is Ignoring Pension Scheme Victims'
(July 1, 2004)
Leading pensions expert, Ros Altmann, concludes, "the Government is
simply trying to exclude as many people as possible from the
assistance." Altmann's response, like that of many, appears to be one
of frustration at the British government's handling of the nation's
pension system. The administration has been criticized innumerable times
