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 Competition and Markets Authority (CMA) has published three working papers as part of its investigation into the investment consultancy and fiduciary management markets.
In this week's Pensions Buzz, we wanted to know whether contract-based, trust-based or a master trust arrangement would be best for a new defined contribution (DC) scheme.
This week's edition of Professional Pensions is out now
MPs failed to place legislation into the Financial Guidance and Claims bill that would have made pension guidance default, which Just Group director Stephen Lowe said left a "bitter taste".