INDIA - The Ministry of Finance has proposed relaxing rules governing employer-sponsored pension fund investment.
The ministry has proposed allowing fund to invest up to 5% of assets in equities and 10% in corporate bonds, most likely invested through government-approved mutual funds and not by direct investment, according to Watson Wyatt.
This rule would apply to provident funds, pension funds and funds set up by employers to finance mandatory severance payments. The reforms would also impact on the government-run Employees Provident Fund, which most employers use as the provider for mandatory provident fund benefits.
The proposed reforms would have to be approved by parliament as part of the national budget legislation.
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.
Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point