JORDAN - A pension reform linking benefits to lifetime contributions and ensuring pensions are indexed to inflation should be a priority, the International Monetary Fund (IMF) said in a staff report.
The IMF staff declared the Jordanian Social Security Corporation (SSC), which collects pension contributions and hands out benefits, needed to put its finances on a “sustainable footing.”
Inflation-linked pensions will help prevent the erosion of their real value over time, the IMF staff said.
The report suggested the government should discuss SSC reforms as well as development of the pension system.
In other news, the SSC has set up a pension fund for Jordanian expatriates. This will give Jordanian workers residing outside the country the opportunity to make pension contributions.
A buyout tool which provides schemes with up-to-date pricing and comparisons between insurers has been launched by JLT Employee Benefits.
The DB white paper sets out plans to review the funding regime, with 'prudent' and 'appropriate' possibly redefined. But James Phillips asks if this could this signal a return to an MFR-like approach?
The trustees of GKN's pension schemes have agreed a package of mitigation measures that would improve funding to a "more prudent level" if Melrose's offer is accepted by shareholders next week.
While the new powers are welcome, most respondents doubt it will make a difference to the outcomes for members, Pensions Buzz respondents say.