Including: US - New York signs pension anti-fraud law; GLOBAL - Markets warned to expect more intervention; US - New ERISA guidance for fiduciaries; AUSTRALIA - Sunsuper acquires former Citistreet admin business
The governor of New York has passed a state law designed to prevent abuses of public pension schemes which has seen some school district workers receive both pension payments and salaries while working as external contractors in the same or similar job they had recently retired from.
The law requires schools to wait a year before hiring any former employee to the same or a similar position they left and requires schools also show they made all reasonable efforts to recruit non-retired workers to fill the position.
GLOBAL - Markets warned to expect more intervention
Investors should expect further market intervention by central governments and regulators despite the actions already taken, Watson Wyatt has warned.
In a research note, the company said increasing uncertainty in the real economy and tightening credit conditions would make further intervention in the markets necessary, including further rate cuts, expansion of liquidity facilities and direct involvement in the banking system.
US - New ERISA guidance for fiduciaries
The Department of Labor has issued new fiduciary guidance under the Employee Retirement Income Security Act (ERISA) to clarify its stance on investor activism.
The guidance states the primary responsibility of a "workers' money must be invested solely to provide for retirement, not for political, corporate or other purposes".
AUSTRALIA - Sunsuper acquires former Citistreet admin business
Sunsuper has acquired CSA Retirement Services, formerly Citistreet Australia.
CSA Retirement Services has worked with Sunsuper for eight years, providing administration services to the fund. After the acquisition is completed, CSA Retirement Services will be a wholly owned subsidiary of Sunsuper, but will continue to service its other clients as existing contracts demand.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.