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Pension: World

Archives: 2003

India: Contributory pension system: Approach with caution (December 23, 2003)
The population of India is increasing, and as in other countries, getting older. By 2016, the number of Indians above age 60 is expected to be 113 million. This is an average of 8.9 per cent of the population. That’s why the government is considering a reform that the author says must be supported. The Ministry of Social Justice and Empowerment worked on a national project called the Oasis project (The Old Age and Income Security) that would deal with savings over the life times of workers and unorganized labor.  A key issue will be whether such savings should be invested in equities which have proved volatile in the US and Europe.  The author also points out the social inequity of using public resources to “bail out” private pension funds in times of economic downturn.  Another consideration is the location of the contributory pension administration that will affect the economic growth of its host city.  

Malaysia : Pension fund not short of money, says minister (December 23, 2003)
In Malaysia, the Employees Provident Fund (APF) suffered from the Asian crisis and many contributors worried about their pension benefits. The Second Finance Minister, Dr. Jamaludin Jarjis guaranteed that the EPF had enough funds for all its contributors’ pensions. It’s a relief for the 10.4 million contributors, but they continue to worry about new proposals  that would affect pre-retirement withdrawals.  

Mexico: Sindicatos celebran alza a pensiones del IMSS (December 22, 2003)
(Article in Spanish)
Mexican union leaders praise an eleven percent raise in the Social Security fund. If this eleven percent increase continues to climb steadily, lives of older Mexicans will get better. 

Russia: Expats Go to Court Over Pension Dues (December 22, 2003)
In Russia, new pension contribution rules call for taxing foreign employees. This seems unfair since foreigners who work in Russia are not eligible for the pension benefits when they retire. Some international companies based in Russia asked the court to clarify the situation. Most foreign workers are also taxed in their home country. In fact, most of Western countries use rules to prevent the double taxation. But Russia doesn’t have any international agreement on this point. Russian Finance Minister, Natalya Komova, explains: We have to tax the foreigner employees since one day they may assume the Russian citizenship and then demand a pension. 

New Zealand: More work-based retirement saving schemes needed, says taskforce (December 22, 2003)
The New Zealand Periodic Report Group recommended that the government create a Special Advisory Group to encourage workers to participate in retirement savings programs that could be transferred from one job to another. In fact, New Zealand workers do not save enough and with the baby boom retirees taking their pensions, the situation will become worse.   By asking for Financial Advisors aimed at low and moderate income earners, it is unclear if this will be a “privatized” effort or not.  Perhaps low and middle income workers simply need higher wages so that they have money to save.  Economic growth, the authors contend, will boost saving.  

Australia: Millionaires on Pension Row (December 20, 2003)
Using a scam, Australian millionaires can use a do-it-yourself pension fund to create structures that enable them to easily pass the means and assets tests and claim the full age pension in Australia.  At the same time, multimillionaires are using the self-managed pension to legally shelter large parts of their fortune in a pension reserve that can be used to provide for the next generation.

United Kingdom: Brussels raises pressure on pension plans (December 22, 2003)
The new European Union rules may force some United Kingdom pension plans to close. In fact, the new rules aimed at having pension schemes financially available at any time. This means a huge cost for the employers.  Also firms may decide to close their schemes to new members. The National Association of Pension Funds (NAPF) worried about the consequences on the retiree population and so does the Trade Union Congress (TUC). The Department of Work and Pensions officials said the interests of NAPF will be taken into account.  Who will speak up for those who are “closed out” of a pension fund as they come into the workforce or transfer to a new job?   

Czech Republic: Insurer Ceska pojistovna buys 70 % stake in ABN Amro pension fund (December 22, 2003)
A major change in the Czech Republic’s pension system. The Ceske Pojistovny pension fund, the largest private pension fund of the country, has just bought 67per cent of the ABN Amro Penzijni fond (ABN PF) pension fund. No change is currently predicted for the 216,000 clients of ABN.  The firm says it wants to improve services and assets of its clients. The Czech Anti-Monopoly Office (UOHS) and the Finance Ministry must approve the transfer from ABN to CP.  However, we wonder if private monopoly and distant ownership will be positive, in the sense of serving older persons’ financial needs responsibly. 

Zambia: Kafumukache Refuses to Sign Zambia Sugar Pension Scheme (December 20, 2003) 
The recently privatized Zambia Sugar Company (now owned by Ollova) must come up with an account of pension contributions that workers have already made to their pension system.  Until this is done, the Labour minister, Lt Col. Patrick Kafumukache, will refuse to sign the new pension scheme of the company.  The Lt. Col. is also concerned about occupational health and child workers in the sugar cane process.  The Labour Minister says that retirement is a death sentence without a pension.  He considers his nation as wealthy enough to improve itself through economic development, with privatized companies’ profits contributing to job creation and education of the population.

France: Calcul des Pensions, Rachat de Cotisations: la Loi sur les Retraites se précise (December 17, 2003)
Article in French
In France, five decree projects were given to the National Fund for Retirement People to make the new pension law called « loi Fillon » effective. The new measures will give pensioners a 3% increase in pension benefits for employees working over 60 years old, a better situation for pensioners who contributed to more than one pension fund, an increase for small pensions, an increase for each year spent educating children and the possibility to buy back years of contribution.

European Union: IASB may allow use of UK rule on pensions (December 17, 2003)
The European Union listed companies have to use international accounting standards beginning in 2005 that affects pension schemes. The choice of the standard is an important point and under debate now. The International Accounting Standards Board has to choose between two standards: the IAS 19 and the FRS 17. The IAS 19 allows companies to smooth out gains and losses over a couple of years. This existing international pension rule distorts the reality of a deficit in any single year, according to Sir Tweedie. The FRS 17 is the British model. The balance reveals gains and losses immediately. Sir David Tweedie, chairman of the IASB, is supporting the British model, but it’s not clear what the Europeans will decide to do. PIC

United Kingdom: Veterans pension scheme attacked (December 16, 2003) 
The British government wishes to cut the level of pensions paid to the armed forces to offset the expected annual rise in payments. The reform would also put back the age at which veterans would start receiving their pensions. These changes are unfair, some members of Parliament argue, and are going to make veterans worse off.

United Kingdom: Pension payouts for lower-paid workers hit by tax changes (December 15, 2003)
The Engineering Employers Federation warned that the British government's reforms designed to simplify the pensions system could affect people with small occupational pension savings. If a policyholder dies within five years of starting to draw their pension, the remaining savings entitlement would go to their widow or widower since pension schemes guarantee five years’ worth of pension. However, it would be subject to a 35 per cent “stealth tax.” The reform package appears to have unintended consequence which will hit lower paid manual workers particularly hard as they are statistically much more likely to die within five years of retirement than people paid more or with easier work lives.

United Kingdom: Will Britain repeat US mistakes? (December 14, 2003)
The British government is proposing a new Pension Protection Fund modeled after the US Pension Benefit Guaranty Corporation. The PBGC might represent security in retirement for many Americans but now this quasi-government body is facing a financial abyss due to the growing number of insolvent companies. The US government backs up the PBGC with public funds in case of problems. But any bailout means that all taxpayers have to pay for the pensions of failed corporations, perhaps 20% of the workforce. Is this fair? The Brits will have to decide how to do it. 

United Kingdom :State pension to rise from April ( December 11, 2003 )
British Work and Pensions Secretary, Andrew Smith, told Parliament that state pensions will rise in line with inflation and extra help will be given to the poorest pensioners and to those with savings. However, the pension credit, created a couple of months ago, did not benefit all those eligible for it. The system by which pensioners can receive credit is too complex according to the Conservative opposition.

United Kingdom :The Parent Trap ( December 10, 2003 )
The British chancellor, Gordon Brown, issued a pre-budget report containing surprises for parents, entrepreneurs and pensioners. One of the aims of the government’s new proposal is to simplify the tax regime for pensions. The draft paper focuses on greater flexibility within annuity rules, opportunity for people to take a pension much earlier and limit the maximum pension benefits available at retirement. The chancellor hinted that the current state pension scheme was "sustainable" compared to other European countries and to stay this way, state pensions will remain low in the future. 

United Kingdom : Taking steps to restore faith in pensions sector ( December 7, 2003 )
British policymakers are wrestling with the pension system since it is under the strain of an ageing population, the three-year fall in equity markets and the closure by companies of hundreds of pension schemes. The British government intends to introduce legislation to protect workers’ retirement funds and guarantee a decent pension if their companies go bankrupt. The first step in doing so was the creation of a pensions commission. Employees, with the support of the Trades Union Congress, are pushing for the introduction of compulsory investment into pension plans to avoid poverty in old age while business groups such as the Confederation of British Industry are opposed to this idea.

Italians flock to pension protest ( December 6, 2003 )
Huge crowds of workers and pensioners gathered in Rome to protest against the Italian government’s pension reform. Unions say the reform is unjust and ineffective, and they are refusing any further dialogue until the government withdraws the proposals. The crowd also protested Berlusconi’s economic policies, which some say erodes the welfare state by favoring the wealthy.

Great Britain : Baby boom or pension bust ( December 1, 2003 )
British people are living longer, but that good news means bad news for Britain ’s precarious pension system. To ensure that all pensioners have enough to live on, British policymakers are looking at multiple reform options, each fraught with political controversy.  Workers could work longer, companies could pay more taxes, the state could compel people to save, or, as this article suggests, the Brits could just start having more babies.  

Non-contributory pensions and poverty prevention: A comparative study of Brazil and South Africa (December 2003)

A comparative study of non-contributory pensions, published by Help Age International, provides evidence of how non-contributory pension programs affect the well-being and the security of older people and their families. An international team of researchers studied non-contributory pension programs in Brazil and South Africa and found that the programs had a positive effect on bringing households out of poverty. This innovative program could help other developing countries in the future. 

Germans debate benefits for elderly ( November 30, 2003 )
More than 100,000 protesters took to the streets of Berlin this month to protest against Germany ’s first pension cut and a rise in nursing-care insurance fees for the elderly. With these measures, Chancellor Gerhard Schroeder hopes to plug a funding shortfall and start addressing the challenges of an aging population. The long-standing “contract between generations” is increasingly under threat in Germany , while younger people challenge older people to abandon some benefits to keep the system from collapsing.

Brazil shakes up pensions ( November 26, 2003 )
The Brazilian Senate has approved a major overhaul of the pension system, reducing the generous benefits paid to retired public servants. The system had favored the small minority of Brazilians who worked for the public sector, contributing to Brazil ’s deep social security deficit.

Great Britain: Company pensions to be protected ( November 26, 2003 )

The British government will introduce a Pensions Bill to protect workers’ retirement savings. Under the current law, thousands of workers lost their life’s savings when their firm went bankrupt. The new bill will secure workplace pensions and reduce the complexity of the system. However, workers who have already lost out will not be compensated.

Why are retirement pensions under attack? ( November 17, 2003 )
In most Western countries, pension systems to support older citizens are under attack.  In a period of ascending power among the rich, the most powerful have targeted pension systems that benefit ordinary persons for “reform.”  This article, while steeped in the language of socialism, spells out some of the fundamental issues. The author, a journalist for the World Socialist Web Site, believes that “ruling elites” are making working people pay for the problems of the profit system. As he rightly points out, individual pension plans that invest in the stock market eliminate the conception of an old age pension being a social right.   Betting on the stock market casino becomes the unhappy alternative.

Workers' pension fight continues (November 24, 2003)
United Kingdom: A bill to protect people who have company pensions is likely to be in the Queen's Speech on 26 November. But workers who have already seen their pensions disappear may not receive help. BBC News Online talks to one worker who is fighting for his pension rights.

Russia: Elderly yearn for Soviet-style stability from poll (November 19, 2003)
Svetlana Babichenko sells fur hats to top up her pension – a far cry from the stable retirement she was promised under communism. That, for her and millions of elderly Russians like her, is the sole issue in the December 7 parliamentary election. "When you've got bread but no butter, you do all you can to get the butter," she said, shivering at her market stall. Babichenko, 77, is one of Russia's 29 million pensioners who were among the biggest losers when the Soviet Union's collapse in 1991 propelled Russia into capitalism and a free market. They gained political freedom, but lost cheap food, rent and state benefits. They can only shake their heads at newspaper reports of Kremlin wrangling with "oligarch" businessmen who made billions of dollars in the 1990s sell off of state property. Babichenko, once a factory-hand, has resorted to selling the hats along with husband for sheer survival.

British Airways flies into pensions black hole Easy Jet’s profit falls by 28% but it still expects to overtake BA in Europe (November 19, 2003)
British Airways has to put in extra money in one of its pension fund or find different ways to cut costs. Employees fear they might see their retirement benefits reduced. The company remains committed to its pension plan but has nonetheless opened talks with unions. British Airways is one of the latest British employers that has to face pension fund difficulties.

                        
 Koizumi's pension reform dilemma ( November 19, 2003 )
The Japanese Prime Minister, Junichiro Koizumi, wonders how to reform the national pension system before the government compiles the fiscal 2004 budget, end of December. The reform would keep pension premiums under 20 percent of annual income and maintain pension payments between 50 percent and about 55 percent of net annual income for the average worker. Businesses are opposed to raising premiums because they contribute to half of it and they want more flexibility in a time of international competition.

Japan ministries disagree on pension reform (November 18, 2003)
Japanese society is worried about supporting retired workers with pensions and how to increase consumer spending.  It appears that the plan to cancel an income tax rebate in order to finance future pensions is dead.  While a consumption tax could raise funds for pensions, the public does not want to spend—they want to save for their pensions in the future.  And business does not want to sacrifice its profits.  A capitalist dilemma!

Pensioner tax plan abandoned ( November 18, 2003 )
Hampshire County Council offered elderly voters a rebate for part of their council tax but the plan was abandoned. It appears that pensioners themselves opposed having the rebate since it would have pressed more taxes on low-income persons and reduced children’s educational opportunities.  

More Oldies To Quit UK ( November 18, 2003 )
About one million British retirees live outside the UK and this figure is supposed to grow even more by 2020. Better climate and pace of life, lower living costs, social advantages offered by governments trying to attract them and their income, and growing exposure to foreign culture encourages this old age migration.

一企業勞資科長冒領死人錢兩年“吞”了7萬多(2003年11月17日)Enterprise Payroll Official Took 70,000 Yuan Pensions in Two Years (November 17, 2003)
Liming Zhang, Chief Payroll Official at Huzhou Hardware Factory, took 73,155.3 yuan worth of pensions in the name of four dead ex-employees. Zhang is sentenced for three-year imprisonment for fraud. A judge believed that the fraud could be avoided if the factory had an effective monitoring and management system over payrolls and pensions. As a matter of fact, Zhang was able to control all the steps in payrolls and pensions, which made it very easy for him to commit the fraud. (Article in Chinese)

Pension covers 'hardly anything,' retired Mozambican pastor says (November 14, 2003)
Retired United Methodist pastor Joco Tene Ngale never saw a self-sustaining pensions system in his home country of Mozambique. He died just weeks after meeting with a fact-finding group studying the feasibility of standardizing pension support for United Methodist clergy and other church workers outside the United States. The church in Mozambique provides pensions to its retirees, but the depressed economic system causes the amount to vary. Ngale, who served 35 years as a pastor and district superintendent in this southeastern African nation, was receiving a pension of about $100 a year at the time he spoke to members of the United Methodist Global Pensions Task Force and other visitors.

企業年金制度可讓養老金翻倍國家立法兩年難產(2003年11月13日)Enterprise Pension Plans Will Double Retirement Benefits (November 13, 2003)
Last year, officials of the China National Labor and Social Security Bureau said that the regulation for enterprise pension plans was expected to come into force soon. But after over a year, the regulation is still pending. If enterprises provide pension plans for employees and pension fund managing companies invest the funds well, retirees will be able to receive extra income from enterprise pension plans apart from the social security pension benefits. (Article in Chinese)

Ethiopia: Pensions of Former State Employees Doubled (November 11, 2003)
International aid organisations on Tuesday welcomed a government decision to double state pensions, but warned that more had to be done for Ethiopia's elderly. Peter Bofin, the head of HelpAge International, said that whereas the move was a positive step, it was noteworthy that about 3 million old people in the country were receiving no pension at all. Ethiopia's 411,000 or so pensioners have now seen their state pensions doubled to US $11 a month, but the recipients are all former government and state sector employees.

United Kingdom: Don't bet on houses for pensions (November 11, 2003)
Rampant house price inflation has given British people a false sense of security about their future retirement funds, discouraging them from saving, says Association of British Insurers’ director-general Mary Francis. Francis argues that people may suffer from their over-optimistic outlook if property is not worth as much as they expected by their retirement years. 

United Kingdom: Pension credit 'got off to a good start' (November 11, 2003)
1.4 million pensioners will receive a new pension credit created by the UK Work and Pension Secretary. The pension credit combines a Minimum Income Guarantee (MIG) and an additional payment rewarding pensioners for their savings. However, not all eligible households have claimed the pension credit, forcing the government to make sure the most vulnerable pensioners are not left out.

Rover faces pension fund talks (November 11, 2003)
Union leaders will meet with Birmingham-based car group MG Rover after it announced the creation of a £12.9 million trust for senior executives’ post-retirement benefits. Workers’ representatives are concerned about the size of the fund in light of the £95 million loss recently revealed in the 2002 accounts.

Unions urge World Bank: Stop pushing private pensions! (November 10, 2003)
The International Confederation of Free Trade Unions (ICFTU) sharply criticizes the World Bank’s active promotion of private pension plans at the expense of traditional pay-as-you-go systems throughout the world. The Bank supports privatization, claiming that private funds will inject workers’ savings into national economies and strengthen them. At times the Bank has bludgeoned countries to adopt privatization if they want Bank or other credit to build infrastructure. The ICFTU points out that privatization is costly, has high administrative costs and does not work. Private pensions are low, especially for women, and many have no pensions. Instead of pushing privatization, the authors say the Bank should use its expertise and financial resources to help countries to improve existing public programs. 

The International Confederation of Free Trade Union released a 60-page report on the World Bank Involvement in the Privatization of public pension systems in Developing and Transition Countries in May 2003. 

Irish Workers Are Slow To Embrace Pension Plan (November 10, 2003) 
With an average age of 35, Ireland has the youngest population in the European Union, and those born during its 1970s baby boom will come of pensionable age in 2035. While France and Germany struggle over changes, Ireland's government has taken action. But its latest big idea -- Personal Retirement Savings Accounts, which aim to boost private pension coverage to 70% from 50% -- isn't proving to be the savings bonanza the government had hoped.

The challenges older persons face in Azerbaijan (November 10, 2003)
Gunel Sultanova of Global Action on Aging addresses the plight of elderly refugees and internally displaced people in Azerbaijan in a GAA seminar presentation. As Azerbaijan struggles with economic and political turmoil left from the collapse of the former-Soviet Union, refugee and displaced seniors are particularly vulnerable, with little or no state pension support. 

United Kingdom: Bail-out for workers' pensions (November 10, 2003)
The shipping firm Maersk voluntarily decided to ensure that all members of the Sea-Land Services pension plan, which they inherited as part of a takeover in December, 1999, will receive their full pension. United Kingdom law does not guarantee a minimum pension for workers of a firm that goes out of business, except for already-retired workers. The Department for Work and Pensions won’t change the law to protect pensioners until 2005. 

Europeans Face a Bleaker Old Age (November 7, 2003)
The “demographic time bomb” presents a troublesome challenge for European governments: the number of pensioners is increasing while the workforce contracts. Europe may be forced to reform or privatize its generous public pension system, leaving today’s young workers with far fewer retirement resources. As a result, the younger generation may have to work longer and save money to retire as comfortably as the previous generation. Perhaps people will want to work longer if jobs become more interesting, less onerous and taxing on health. 

United Kingdom: 'No blank cheque' for pension victims (November 4, 2003)
Allied Steel and Wire (ASW) union workers lost 80 percent of their pensions when their company collapsed. Now, ASW is taking the British government to the European Court of Justice on charges that it did not protect pensioners as required by law. Pensions minister Malcolm Wicks has proposed a US-style insurance plan that would prevent future problems, but the plan would not compensate workers who have already lost out. 

United Kingdom: Baby boom pensions rethink urged (November 4, 2003)
Amid calls for a pension system revamp, Liberal Democrat leader Charles Kennedy wants to set up a working group to look at how people can continue to live a “full and productive life” well into their older years.  Kennedy argues older people should continue to have access to higher education to improve their skills, and advocates for gradual retirement over a certain period of time, allowing older people to continue contributing to society. 

Turkey launches private pension system (November 3, 2003)  
Until recently, pension options for Turks were limited to the low paying state social security scheme, life insurance policies, property and the volatile Turkish equity market. Now, five years of negotiations between private insurance companies and the Turkish treasury has resulted in a new private pensions industry. The pensions industry is already lobbying for broader tax incentives, even though the Turkish treasury relies heavily on income tax from legal workers. 

Thailand: Taking some risk out of work (November 3, 2003)
The Labour Ministry has said all workers, self-employed and company employees, will be covered by the Social Security Fund by Jan 1, 2005. Not everyone is convinced. Workers without any form of insurance have been calling for social security coverage since 1998. Around 35.19 million people make up Thailand's workforce, but only 7.45 million, or 21.17%, receive social security cover, according to the Labour Ministry. The other 23 million include taxi and tuk-tuk drivers, fishermen, farmers, contract workers, people who work from home, housekeepers and self-employed doctors and dentists.

United Kingdom: Unions set to sue government (November 3, 2003)  
Hundreds of steel workers in Wales lost thousands of pounds in pension benefits because the British government failed to properly execute a European Union directive protecting workers in firms that go into receivership. Unions expect their case against the government to be heard in the High Court early next year before being transferred to the European Court of Justice.

Israel Braces for Strike Over Changes in Pensions (November 3, 2003)
Israel is preparing for a nationwide strike to protest the government’s planned pension changes. Finance Minister Benjamin Netanyahu wishes to increase the retirement age to 67 years old for all workers, instead of 65 for men and 60 for women. The leader of Israel’s largest labor federation, Amir Peretz, accuses the government of imposing even greater burdens on the poor and working classes.

United Kingdom: Pension talks at Rolls Royce (October 30, 2003)  
Rolls Royce says it will cope with its large pension fund deficit by reducing the value of employees’ pensions by 20%. Heavy stock market losses in the last three years, and fewer employees, led to the £1 billion deficit. Union leaders say all levels of workers are ready for strike action if negotiations between union leaders and managers are not successful.

Under-35s face pension misery (October 27, 2003)
A survey by the UK National Consumer Council finds that young people under 35 have particular difficultly saving for retirement because of high costs, lack of confidence in pension providers and insufficient financial information.  Analysts worry that young people will be unprepared for retirement, and recommend simple and clear financial advice to guide them.

Canada: Pension reforms welcome (October 27, 2003)
The Régie des rentes du Québec proposes reforms in the Quebec Pension Plan that would encourage older workers to delay taking their pension benefits at the age of 65 and keep experienced workers in the Canadian workforce. The Régie would increase pension benefits by 0.7% for every month of work after the age of 65.

Zimbabwe: Inflation Wipes Out Pensioners Income (October 25, 2003)
As the nation tries to come to grips with economic hardships, many pensioners are destitute. Inflation has eroded the value of their pensions so much that most now rely on handouts. Some pensioners have even stopped collecting their payouts. The bus fare to collect the money is more than what is paid. Most of those in destitution have pensions ranging from ZWD $900 (1000 Zimbabwe Dollars = $1.25 USD, GAA) to a maximum ZWD $90 000 a month. These pensions cannot match escalating prices, being pushed by inflation, which has reached a staggering 455 percent.

Don't rush pensions reform, social partners plead (October 24, 2003)
Malta’s Finance Minister, John Dalli, is preparing for Malta’s inevitable pension reform.. However, “social partners” in Malta, including trade unions and employers, urge the government to proceed cautiously with pension reform. Mr. Dalli proposes making a higher retirement age for workers an “option” depending on their working capacity, but social partners remain critical of this measure. 

Italy hit by Pensions Strike as Germany Debates Reforms (October 24, 2003)
European countries face a growing crisis in their pension systems: the number of tax-paying workers is insufficient to pay for retirees’ pension benefits. Governments are starting to propose reforms, but they face intense opposition. Italy has already been crippled by strikes, and Germany is still waiting for public reaction to ongoing political debates.   

Russia: Every Fifth Russian Works for Free (October 24, 2003)
Last week, the RF Pension Fund finished printing of 42 million notifications to the citizens of Russia to inform them of the pension accounts status. Eight million of the notifications stated the pension account status was zero. Thus, the official statistics says that every fifth Russian is working for free. At that, the reported information is not final at all. Yesterday, RF Labor and Social Development Minister Alexander Pochinok said that as soon as the information on the status of pension accounts provided by the Pension Fund is analyzed, the number of people having actual "zero" pension accounts may even increase. The minister says these are going to be "huge figures". What is more, the RF Pension Fund does not have complete information because "many employers do not register their employees as workers."
(This article is also available in Russian in our Russian section)

Pension plans prompt Italians to strike (October 24, 2003)
A strike over Italian Prime Minister Silvio Berlusconi’s pension reform proposals left the country paralyzed, as unions called on workers to take the streets. Berlusconi proposes to increase the number of required contribution years to 40 years and raise the retirement age to 65 for men and 60 for women. Unions argue that government hype about pension reform is simply masking Berlusconi’s other “misguided” policies.  

United Kingdom : Today's pension…tomorrow's burden ( October 22, 2003 )
All over Great Britain, people are finding their employer-paid or private pension plans savagely cut or completely lost. The state, argues this journalist, is the only pension provider that can guarantee a minimum income in old age. However, the state pension system must represent a social contract, affordable today and also for future generations, not a burden.

United Kingdom: Britons 'still not saving enough' for retirement (October 21, 2003)
More than a third of the British working population does not save enough for retirement, even though few believe that the pension system alone is likely to provide them with a decent standard of living, says a recent survey by the insurance industry’s trade body. Industry experts say the British government has to create a reassuring framework informing people on how to save enough to guarantee a good standard of living in retirement.

German Pension System Plan Increases Burden on Retirees ( October 20, 2003 )
A German government proposal to prop up its flagging pension system will put a greater burden on retirees by keeping employee contributions level. This proposal reduces the German pension reserve fund and requires elders to pay the full cost of nursing-care insurance. Lower-income elderly people will be hit especially hard by this step back in the German welfare system.

Germany proposes pensions freeze (October 20, 2003)
The governing coalition in Germany has proposed freezing the level of retirement pensions in 2004 as a part of its economic reform package. The decision - described by Chancellor Gerhard Schroeder as one of the most difficult his government has had to take - was announced after a meeting between coalition partners, the Social Democrats and the Greens. Mr Schroeder admitted that the freeze effectively amounted to a cut in real benefits received by pensioners. The freeze is designed to help the government deal with a substantial shortfall of $12m (10.3m euros) in state pension funds.    

United Kingdom: Pension plans on life-support (October 20, 2003)
A flood of articles in the European media recently has warned about the growing problem of paying pensions as the populations of European countries age and birthrates decline. For Japan , this problem looks especially acute. The British claim that they are in a better position than continental European countries since many of their pensions are funded through company and private schemes involving money invested in bonds and equities. Old-age pensions operated by the state on a "pay as you go" basis (deductions from the earnings of those working pay for the pensions of the aged) are hardly adequate for survival. The author examines the issue of pensions in Great Britain and the problems its aged population faces there.  

Russia: Whom Can You Trust With Your Pension? (October 20, 2003)
A Russian journalist illuminates crucial problems with the Russian pension system through the struggles of his son and daughter-in-law. He touches upon issues that older people worldwide face when trying to claim the pensions they deserve: women penalized for taking time off for childcare, an abundance of information but a lack of explanation, and government pressure to privatize.  

'Old' Europe struggles with pension ( October 19, 2003 )
European governments are having trouble paying the pension bill, as millions of baby boomers head into retirement. Without pension system reform, costs will get even higher while pension benefits decrease even further. The first victims of Europe ’s pension crisis will be the poor elderly who may not be able to pay for their basic needs. 

Japan : Making pensions work ( October 18, 2003 )
The pension debate is back in Japan , as campaigns for Japan ’s Lower House elections get under way. Both young and old people worry about the pension system: the former think they won’t get back what they put in, and the latter worry their benefits will decrease. Japanese political candidates are all pitching their platforms on how to pay for pensions, but voters want them to forget the sweet talk and make credible proposals in the next few days.  

Namibia: MPs Trade Barbs Over Pension Hikes (October 17, 2003)
SWAPO (South-West Africa People's Organization) levelled a host of accusations against the opposition as ruling party lawmakers maintained their hardline stance against proposals to increase old age pensions on Wednesday, October 15. The debate on an opposition motion calling for pensions to be upped to N$550 a month resumed with no signs compromise from either side of the House. The current pension is N$250 a month ($34 – GAA).  

United Kingdom : Treasury targets high earners' pensions (October 17, 2003)
Wealthy British business leaders are uniting to fight a Treasury reform proposal that would limit the amount of money they can have in their pensions by the time they retire. The government wants to impose a £1.4m “lifetime limit” on pensions, and funds in excess of that limit would be heavily taxed. While the Treasury notes that only about 5,000 people would be affected by the reform, a powerful lobby of high-income earners says the limit would discourage pension savings, and encourage businesses to shift remuneration from pensions to salaries and benefits.  

Nigeria: Many Teachers Died Without Their Pension (October 16, 2003)
In the swirling economic currents of rising cost of living, fuel price hike, low wages, high rents, widespread poverty, low purchasing power, and prevalent recession, unpaid pensions of retired teachers is sending many of them to the great beyond. National President of Nigeria Union of Teachers (NUT), Mallam Abdulwaheed Ibrahim Omar has disclosed that many retired teachers have died across the country without being paid their pensions. He stated: "It is the age-long problem of unpaid pension rights to teachers who retired from our school system, particularly primary schools, since 1994. These teachers have remained since retirement in many states, without their gratuities and without pension. Many have died. Many more are sick and cannot afford the high cost of medication. Not a few have been thrown into destitution, undue dependence and state of extreme hunger, disease and untold suffering".

Malta: Dalli proposes mix of private, state pensions (October 15, 2003)
The Finance minister of Malta, John Dalli, proposes a new pension system that would combine the pay-as-you-go system, ensuring a minimum income for all elderly people, with a funded scheme of private pensions. Dalli maintains that Malta needs to prepare for the challenges of an aging population by guaranteeing a strong and viable pension system, but insists Malta ’s social safety net should remain intact. 

Minister acts on pensions, Kelly demands radical change in City investment management (October 15, 2003)
Ruth Kelly, the British financial secretary to the Treasury, called a meeting with leading figures in the pension industry to demand radical changes in the management of retirement funds by City firms. The reform needs to tackle the traditional approach of the pension fund industry, which fosters a short-term approach instead of long-term investments. Furthermore, consultants and trustees have to work together to make the best investment choice for all the members of a pension fund.

Russia : Pension Reform Follows Corporate Example ( October 14, 2003)
Pension reform is a hot topic as the government wrangles with a new system to improve retirement prospects for the nation's millions of workers. The failings of the old state system created during Soviet times are obvious: people toiled away the best years of their lives only to be left with subsistence-level pensions in their golden years. The question today is how will working people cope with the new options for investing their hard-earned capital? Will the corporate pensions’ example help them?  

Europe: Pension crisis straps Europe (October 15, 2003)
Aging is a planetwide phenomenon. The number of people aged 60 and over -- 606 million in 2000 -- will hit 1.9 billion by 2050, outnumbering children for the first time in history, the United Nations estimates. It's a problem familiar throughout the industrialized democracies, from Japan to the United States. Europe, however, is particularly challenged because it is among regions aging first, its pension benefits are sometimes exceptionally generous, and they are often financed by the current generation of workers.
Such schemes were fine when workers greatly outnumbered retirees. But that's no longer the case. After the postwar boom, birth rates plummeted. The result is that by 2040, across the 15-nation European Union, there will be just two working-age people per retiree, the World Bank estimates. That's half the current ratio of 4-to-1.

Barbados: Pension plan ease (October 15, 2003)
In a move to widen the net of Barbadians covered by pension plans, Government yesterday introduced sweeping new legislation to govern the administration of private pension plans while making them more accessible. The new measures will shorten the time employees must wait before becoming eligible to join pension plans; give members in such plans vested rights to their employers’ contributions after only three years and make provisions for employees to take their accrued pension rights from employer to employer.

Fresh attack on Britain over expatriate pensions (October 13, 2003)
The new Australian minister for family and community affairs blasted the British government for its discriminatory and unfair system regarding British pensioners in Australia and 47 other countries. The British government does not allow expatriate pensions to rise with inflation, a problem exacerbated by the increasing value of the Australian dollar against the Sterling , leaving the Australian government to support British retirees in need of financial help.

Australia: Medicare 'an article of faith' (October 12, 2003)
Despite current problems, Australia has a good health system compared to other countries. Unlike Britain, we have a vigorous private sector which takes the pressure off public hospitals. Unlike America, access to top-quality health care does not depend upon private health insurance. After the Japanese and Swiss, Australians have the highest life expectancy in the OECD. After the Japanese, Swiss and Swedish, Australians have the longest healthy lives in the OECD. Even so, governments can never be complacent about the state of our health system because health is important to everyone.

Namibia: Passions High Over Pensions (October 10, 2003)
The government has again ruled out adjusting pensions for Namibia 's elderly, at least for now. Breaking her silence on the issue during debate in the National Assembly, Health and Social Services Minister, Dr Libertina Amathila said on Wednesday that the current N$250 paid to the elderly was all Government could afford "I wish the Swapo Government owned a gold mine, certainly the senior citizens would be getting sufficient allowance [then] ... as for now, what the Ministry is giving is what Government can afford," she said. The motion, moved by DTA President Katuutire Kaura two weeks ago, calls on Government to increase pensions to N$550.

United Kingdom: Compulsion moves up the pensions agenda (October 8, 2003)
The United Kingdom is embroiled in a debate about whether the government should impose compulsory pension contributions, forcing people to save for retirement. Charities for the elderly, the Consumers' Association and many of the big trade unions support compulsion, but some people remain skeptical that it might not actually increase savings. Furthermore, compulsion would affect mostly the middle class, who might not always be able to afford saving for retirement, which could imply great political risk for the government.

Germany: German pensions 'face a shortfall of €9bn' (October 8, 2003)
Pension funds in Germany are facing a financial deficit, while high unemployment and falling net salaries have resulted in decreased pension contributions. To avoid making the workforce pay more in pension contributions, the German government may instead postpone the next scheduled rise in payments to pensioners, adding to the distress of elderly people with low pensions. 

Taiwan: Portable pension system in the works (October 10, 2003)
A new law in the works promises to substantially improve old-age security for the great majority of Taiwanese. Staff Writer Francis Li examines the provisions of the Labor Pension Statue draft bill recently submitted to the Legislature, based in part on an interview with Lee Lai-hsi, director of the CLA Department of Labor Standards. Taiwan is a step closer to guaranteeing retirement pensions for all of its workers now that a Labor Pension Statute draft bill has been drawn up by the Council of Labor Affairs (CLA) and sent to the Legislature for review. Under the existing Labor Standards Law, more than 75 percent of workers in Taiwan are not able to receive pensions upon retirement. To be eligible for a pension under current rules, employees must have been employed at the same company or organization for at least 25 years if retiring before age 55, or for at least 15 years if retiring thereafter.

Tanzania: Retirement age to remain 60 (October 10, 2003)
The Prime Minister, Frederick Sumaye, has said the government does not have plans to reduce the retirement age for civil servants, even if the life expectancy continues to decline in the wake of increasing HIV/AIDS deaths. Sumaye said this when responding to questions from journalists during a question and answer session, which was recorded by Radio Tanzania Dar es Salaam (RTD) yesterday. “We will not reduce the current retirement age on grounds of increasing HIV/AIDS deaths. Despite the decline in life expectancy, the government will continue to uphold the current legal retirement age for civil servants,” Sumaye said.

China: Women question early retirement (October 9, 2003)
When the pioneers of New China formulated rules al-lowing women to retire five years ahead of their male colleagues out of concern for their health, they did not foresee that their goodwill would be resented by many women decades later. The policy has been challenged by women, particularly white-collar professionals and civil servants, who are increasingly sceptical about the fairness of the rules of yesteryear. Times have changed, they argue, and technology and efficiency have relieved more and more people from hard physical labour. So the different retirement ages for men and women appear to discriminate against women.

United Kingdom: Stakeholder pensions 'missing target' (October 7, 2003 )
The government's low-cost stakeholder pension schemes are failing to reach their target audience, according to a study. The pension schemes were launched in April 2001 to help people on low incomes save for their retirement. According to research firm Datamonitor, the schemes are being used mostly by existing pension holders and wealthy customers. These people are attracted by their cheap charges and tax advantages.  

United Kingdom: Pension protesters call for end to means testing (October 7, 2003)
Pensioners took to the streets in protest when the Government's controversial Pensions Credit scheme was introduced yesterday, claiming it should be replaced by an increase in the basic pension. Ministers say half of Britain 's eight million pensioner households will be £400 a year better off with the new credit. But pressure groups say the means-tested scheme is too complex and expensive to run. Accompanied by a piper, the 100-strong crowd marched from Smith Square to Portcullis House, central London, stopping on the way to drop off letters at the Labour, Liberal Democrat and Conservative Party headquarters.

Kenya: Treasury acts tough on pensions (October 7, 2003 )
The government has appointed a task force to clear the backlog at the Pensions Department in readiness for the coming into effect of a new pensions law at the beginning of next year. And in a move aimed sparing the government the heavy penalties stipulated in the new law, the Treasury has given the Pensions Department a three-months ultimatum to clear all retirement cases pending before it.

A point of View: A Graying Europe Wonders How to Pay Its Pensioners (October 4, 2003 )
For decades the Catholic Church's pleas asking governments to reject family planning have often fallen on deaf ears. Now, in the midst of a birth dearth and a graying population, European governments are finally wakening up to the looming crisis in their pension plans. Demographers gathered at a recent meeting of the International Statistical Institute in Berlin warned of problems due to population aging, Reuters reported Aug. 15. "While the 20th century was the century of population growth, we can already say from a demographic perspective that the 21st century will go into the history books as the century of aging," said Wolfgang Lutz of the International Institute for Applied Systems Analysis in Austria .

Nigeria: New Pension Scheme, Recipe for Anarchy – OPS ( October 2, 2003 )
The Federal Government's proposed new national pension scheme suffered another major setback as Manufacturers Association of Nigeria (MAN), Nigeria Employers Consultative Association (NECA) and Nigerian Association of Cha-mbers of Commerce, Industries, Mines and Agriculture (NACCIMA) dismissed it as a recipe for anarchy.

Trinidad and Tobago: New NIS pension from today ( October 1, 2003 )
The National Insurance Board has adjusted the monthly pension payment for 47,551 NIS pensioners. The adjustment which takes effect today — October 1 — ensures a minimum NIS pension of $1,000 for each NIS pensioner.

Japan: Sakaguchi focusing on pension reform ( September 30, 2003 )
In the fourth of a series of interviews with senior Cabinet ministers with important and difficult responsibilities--such as curbing deflation, tackling pension reform and dealing with North Korea--Health, Labor and Welfare Minister Chikara Sakaguchi says an important task facing his ministry is to determine the steps to be taken in raising funds and implementing other measures needed to carry out a government plan to increase the ratio of government contributions to the state-run basic pension plan from one-third to half.

South Korea: Pension plan would keep funds intact if firms fail ( September 30, 2003 )
The Labor Ministry yesterday unveiled a new pension system that, if the National Assembly approves it, would guarantee wage-earners’ pensions even if their company goes bankrupt. The plan in essence would force companies to fund their pension plans fully; the funds would be managed by an outside firm. The ministry said it wanted the new pension scheme to be in effect next July. At present, Korean firms with pension plans manage the pension contributions themselves; there are no provisions for recovering money in pension accounts if a firm goes bankrupt. Under the ministry’s proposal, pension funds would be managed and eventually paid out by financial firms contracted to manage the investment of those funds.

Namibia: Pension Hike Ruled Out ( September 30, 2003 )
Namibian Government has ruled out increasing pensions for the elderly soon. At the first ever national consultative conference for the elderly, Health and Social Services Minister Dr Libertina Amathila said that while it was Government's intention to continue increasing grants for pensioners this could only be considered when the country was financially better off. The current pension is only N$250 per month. "Our Government cares, Namibia cares for older people, but we only have one cake and there is a lot to share. Once resources have improved, we will add a little onto old age pensions," Amathila told about 100 pensioners from all the country's regions gathered in Windhoek to discuss issues facing them.

United Kingdom: There is no substitute for the state pension (September 29, 2003)
Very few governments, regardless of their persuasion, have the necessary political foresight to make decisions that take into account the needs of both today's and tomorrow's population. It is widely accepted in Europe and elsewhere that we have an ageing population. This is something to be celebrated rather than condemned as some would have us do; for, despite the ratio of working people to retired falling over the next 30 years, the nation's wealth, through increased productivity and growth, will continue to exceed what is needed in order to provide financial security in our retirement. The response to such developments - such as the proposals to raise the age at which people can draw their state or company pensions, hidden behind the call for equal opportunities - are evidence of the short-termist, knee-jerk approach that suffocates the development of a coherent pensions policy.

India: State panel moots six pension plan options ( September 29, 2003 )
A high-powered committee of state secretaries, in consultation with the Reserve Bank of India (RBI), has suggested six alternatives to replace the existing pension schemes of the Central and state governments. The proposal seeks to reduce the financial load on the Union and state governments in the face of pension-related expenditure mounting to as much as 20 per cent of some state Budgets.

Italy 'must face pension reform' ( September 29, 2003 )
Speaking on national television, Mr.Berlusconi appealed to the electorate to back his government's plans to reform Italy 's expensive welfare system. Mr. Berlusconi said his government was determined to make changes that would provide Italians with greater "security and well-being", and said opponents of change were deceiving the public. But union leaders dismissed Mr. Berlusconi's appeal, and said the issue had been blown out of proportion. 

Malta : Plans to raise retirement age to 65 ( September 26, 2003 )
The government is to propose raising the retirement age to 65 in its pension reforms, according to government sources. The proposals are expected to be presented to the Welfare Reform Commission for consultations. Social Policy Minister Lawrence Gonzi and Finance Minister John Dalli have been working hand in hand on the proposals on the basis of a number of studies on the welfare gap problem and, particularly, the sustainability of pensions as the number of pensioners rises in relation to the number of workers making national insurance contributions.

Pensions: Chile's other revolution ( September 25, 2003 )
Shortly after General Augusto Pinochet toppled Chile 's socialist president from power, another, altogether more peaceful revolution was set in train - pension reform. The country went through “capitalization” phase that forced the state and social services to distance themselves from fixed pension provision. Instead, the retirements become the sole responsibility of those who retire. The most important aspect of Chile 's pension reform was that it switched from a defined-benefit scheme (where pensioners receive a fixed amount, irrespective of their contributions) to a defined contribution scheme (where pensioners' income is based on the money saved during the person's working life).  

United Kingdom: Legal fight for gay pensions (September 24, 2003 )
The government is facing a union-backed legal challenge over the pension rights of gay workers. The unions say new equality laws banning discrimination on the grounds of sexual orientation, due in December, are not being implemented correctly. They say a loophole will allow pension schemes to continue offering benefits to married couples only. Religious organisations will also continue to be able to bar gay, lesbian or bisexual people from working for them, unions say.  

Ireland: 250,000 workers face pensions time bomb (September 24, 2003)
Almost a quarter of a million Irish workers with defined contribution pension schemes are sitting on a potential pensions time bomb and largely unaware of it, according to the Irish Association of Pension Funds (IAPF). Raymond McKenna of KPMG and the IAPF told a conference today that the average defined contribution pensions member needs to "significantly" increase contributions if they are to secure an adequate income in retirement.

United Kingdom: A nation fooling itself (September 24, 2003)
More than half Britain’s workers will be forced to rely on state hand-outs in retirement, although most have fooled themselves into expecting a comfortable old age, a new pensions study shows. The Pension Map of Britain 2003, a study by JPMorgan Fleming, the investment bank, paints a grim picture of a nation of workers that is failing to save for retirement but clinging to the belief that they will have a retirement income of almost £19,000 a year. Instead, the bank warns them that three in four working adults will have to survive on an income of less than half their final salary. The average British salary is now £24,603. To achieve a retirement income of £19,000, workers would have to retire on 77 per cent of the average salary. 

China: DOH starts free flu vaccination for elderly (September 23, 2003)
A nationwide free vaccination campaign against influenza for the aged, sponsored by the Department of Health (DOH), kicked off yesterday with hundreds of elderly citizens queuing up for their turns to get a shot at every public hospital. The campaign lasts until November 15. Only people 65 years old or older are beneficiaries, but anti-flu shots are not exactly free. The DOH provides vaccines free. "We have 1.64 million vaccine shots distributed across the nation," a spokesman said. Any old man or woman who receives a vaccination has to pay a registration fee as well as that for injection. The fees vary from hospital to hospital.

Nigeria sounds alarm over pensions (September 22, 2003)
Nigerian authorities have uncovered a huge deficit in the state pension fund, confirming what many unpaid former state workers have feared for years. Retired civil servants have long complained of non-payment of their pensions, with many forced to queue for days to claim what they are owed. According to Nigerian government calculations, the shortfall in the state pension fund amounts to at least 2 trillion naira (£9.3bn; $14.8bn). The revelation is likely to stir suspicions that some of the money may have been misappropriated. Corruption was a major issue in Nigeria's recent election, which saw won by President Olusegun Obasanjo and his People's Democratic Party (PDP).

Only 15 years of surplus will save Euro pensions (September 21, 2003)
European governments need to maintain a budget surplus for more than 15 years to fund state pensions for today's middle-aged, the International Monetary Fund has warned. Europe's ageing populations will need public spending of around 17 per cent of GDP by 2050 to fund their pensions. Governments must run surpluses of about 2 per cent of GDP for the next 15-20 years to meet the requirements, the IMF said last week. 

Switzerland: Protesters tell Bern to leave pensions alone (September 20, 2003)
More than 25,000 people have protested in the Swiss capital, Bern, against government proposals to cut retirement benefits.Under the proposals put forward this spring, Couchepin suggested that in order to “save” the state pension scheme, the retirement age should be raised from the current 65, to 67. The rise would take place in two stages – from 2015, it would increase to 66 and from 2025 to 67. Moreover, the interior minister wants pension payouts to be linked to inflation rather than based on final salaries as at present. His proposals would bring costs down, but even with them the state would need more money to keep funding its pension commitments. Demonstrators marched through the city centre on Saturday waving banners which read “Hands off our pensions!”, bringing traffic to a standstill.

Angola: Vice-Minister Remarks On Additional Pension (September 19, 2003)
The Deputy Minister of Public Administration, Employment and Social Security (MAPESS), Sebastião Lukinda, Thursday, September 11 in Luanda exhorted employers to establish complentary pension systems that give workers better living standars after retirement. Mr Lukinda, who was speaking in the 2nd Colloquy on Complementary Social Protection, said these rules will improve the conditions of the workers, who mostly get low pensions, and will also stimulate them to work more.

Russia: The Pension Test (September 19, 2003)

Forty million Russian citizens now have the right to choose who will manage their pension savings: the state Vneshekonombank (VEB) or one of over fifty private companies. The VEB promises complete reliability but at yields lower than inflation, while private companies offer actual yield of 3-4% but with unknown risks.

Mozambique: Delay in Pensions Prejudices Miners (September 19, 2003)
The Mozambican National Social Security Institute (INSS) has denounced delays in the forwarding of pensions by the South African Rand Mutual insurance company, to Mozambicans who once worked on the South African gold mines, reports Thursday's issue of the Maputo daily "Noticias". The delays are damaging the interests of the former miners and their families. Meanwhile, the delegate of the Mozambican Labour ministry in South Africa, Pedro Taimo, said that more than 1,000 cases are pending the location of their beneficiaries in Mozambique.

Malaysia: Pension scheme for private sector (September 16, 2003)
An alternative voluntary pension scheme has been suggested in place of the discontinued Employees Provident Fund (EPF) annuity scheme. MCIS Zurich chief executive officer L. Meyyappan said unlike government servants who were well protected with pensions equivalent to half of their last drawn monthly salary for the rest of their lives, the same cannot be promised for private sector employees. “The lump sum payment from EPF upon reaching retirement age of 55 is definitely not adequate, and that fact has not been disputed. “This issue, if not properly addressed, will result in various social problems for the older generation,” said the former Life Insurance Association of Malaysia (Liam) chairman in an interview. 

Nigeria: Epidemic Threatens Pension Exercise As Kalu Calls for Restructuring of Scheme (September 15, 2003)
An outbreak of epidemic is imminent in Asaba, capital of Delta State as hundreds of military pensioners who had reported at Oshimili South Local Government arcade, venue of screening and payment of their pension, have turned the centre into a faeces dump. But the Abia State governor, Dr. Orji Uzor Kalu, has called for total restructuring of the country's pension system in order to overcome the problem being experienced by retired civil and public servants. Speaking during a breakfast meeting with media practitioners in Abia State, weekend, Kalu recalled how he offered a panacea on how to overcome the problem of payment of pension, regretting that labour leaders misunderstood his intention and called him names.

United Kingdom: Elderly mental health 'timebomb' (September 15, 2003)
The number of elderly people with dementia is set to soar - but social services will be unable to cope, a charity has warned. Friends of the Elderly looked at existing provision in South East England - which has a particularly high concentration of people aged over 65. The charity found many authorities do not have the necessary information about future need in their areas. It says action is needed to avoid a "catastrophe in care provision". 

Nigeria: Kwankwaso Attempts to Eliminate Fake Names From Military Pensions (September 12, 2003)
Defence Minister, Engineer Rabiu Musa Kwankwaso has said the Federal Government will only inject more fund for the payment of the arreas of pension and gratuity of military retirees if fake pensioners are flushed out of the administration of military pensions board. Engineer Kwankwaso disclosed this when he visited the Mogadishu Barracks during the general conduct of the pay parade and verification exercise of some retired military pensioners, which commenced nation-wide recently.

United Kingdom: Pension 'let down' for elderly in homes (September 11, 2003)
Under the new Pension Credit, to be introduced on 6 October, pensioners with modest savings will be rewarded for their thrift - and receive a Savings "credit" from the government. Pensioners can get up to £14.79 a week for a single person and £19.20 for a couple under this savings element from the Department for Work and Pensions. But according to the Department of Health, an estimated 80,000 pensioners who are eligible for the savings credit and who live in a care homes will have to pay part of the credit back.

Lagos State Plans to Undertake Census of Pensioners (September 9, 2003)
The Lagos State government has set up a committee charged with the responsibility of verifying the claims and payment of pensioners salaries for the next three months. The public relations officer, Lagos state civil service pension office, ministry of economic planning and budget, Mr. Jide Lawal announced the new initiative in a statement issued yesterday.

Study warns on Japan's pension deficit (September 9, 2003)
Japanese companies face unfunded liabilities in their employee pension funds that are far larger than those at US corporations, where pension deficits have led to worries about the financial health of large companies. According to a report to be released today by Greenwich Associates, a US consultancy, assets at employee pension funds in Japan cover on average only 62 per cent of the payments they will need to make to retirees in future. The assets of US funds cover 103 per cent of their payment obligations.

Nigeria: FG proposes Contributory Pension Scheme to replace NSITF (September 9, 2003)
The Federal Government has sent a bill to the National Assembly repealing all existing pension schemes including the Nigeria Social Insurance Trust Fund (NSITF). The bill pegs the asset base and minimum capital of fund custodians at N250 billion and N2 billion respectively thus excluding many players from pensions management. For the Federal Government employees, they are to contribute a minimum seven and half percent of their total monthly emoluments for their pensions while the government is to pay a minimum of twelve and half percent. For those in the military, it is a minimum of 15 percent by the employer while a minimum of five percent is to be contributed by the employee. In all other cases, seven percent applies for the employee, or as agreed by both parties.

The role of old age pensions in reducing poverty (September 4, 2003)
Non-contributory pensions can help to reduce and prevent poverty among older people and their households in developing countries, according to evidence from a new research study, which compares and examines the impact of non-contributory pension programmes in Brazil and South Africa. The joint project was undertaken by researchers in the UK universities of Manchester and East Anglia, universities in Brazil and South Africa, and HelpAge International.

Australia shakes up pensions savings rules (September 9, 2003)
Australia is to reduce its much-criticised superannuation surcharge on high-income earners. Also, in an attempt to encourage pension saving among poorer Australians, the government will match contributions for low earners. The Investment and Financial Services Association, an industry body, hailed the moves - first mooted during the 2001 election campaign but held up by political disagreement - as "the most significant breakthrough in superannuation tax in 15 years". Helen Coonan, assistant treasurer, said that as a result of a compromise deal reached at the weekend with the Democrats, the 15 per cent surcharge on pension payments for those earning over A$90,500 (US$58,820) would fall from 15 to 12.5 per cent over three years.

India: Government bullish on pension sector growth (September 9, 2003)
The pension sector is expected to become the largest financial sector in India in the next five years and there will be a separate law for the sector, a top finance ministry official said on Tuesday. "Over the next 3-5 years, the pension sector will be the largest sector in the country," U K Sinha, joint secretary (capital markets and pension), said at a seminar organised by the Associated Chambers of Commerce and Industry in New Delhi.

Russia: 55 Earn Right to Handle Pension Funds (September 08, 2003)
The Finance Ministry announced Friday a list of 55 private companies with the right to manage billions of dollars in pensions savings, amid criticism that such a profusion will confuse people and leave control of the funds in the government's hands. As of next month, some 40 million pensioners-to-be must either select one of the 55 private companies or have the investment portion of their money managed by state-owned Vneshekonombank, or VEB, by default.

Italy: National Alliance, no steps taken, Tremonti data insufficient (September 8, 2003)
No step ahead were taken in the Villa Spada summit on pensions and the budget. The severe judgement arrived from National Alliance (AN), according to whom "the elements supplied by the Minister of Economy are not yet sufficient to delineate the entire picture of the situation, both on resources to be found, and also on possible uses of resources to relaunch development and guarantee social cohesion," said the Minister of Agriculture, Gianni Alemanno, and the Vice Minister of Economy, Mario Baldassarri.

United Kingdom: Pensions set to rise (September 8, 2003)
The Social Security Authority (SSA) is asking politicians to agree to a 7.4% rise on a top rate of £121 a week. Married pensioner couples would see an increase of £9.50 a week to £200. This is the second year in which the authority has recommended putting nearly all the increase on the single pension rate. The move is designed to make the single pension a higher proportion of the married couples' rate. 

Fears over Russian pension fund reform (September 07, 2003)
From next year, Russian citizens will be able to opt for a private manager to run their pension account instead of the state. But the decision involves a significant drop in requirements for fund managers to be able to compete for $3bn (€2.7bn) of state pensions and threatens to undermine confidence in pension reform. Elizabeth Hebert, head of Pallada Investment Management, warned: "The government was obligated by law to establish higher fiduciary standards and they have failed to do so. Some of the companies which they are recommending to the Russian population have no public track record at all. This discredits the pension reform in the eyes of the population."

Britons 'to work longer' (September 3, 2003)
The research, compiled by the Future Foundation on behalf of Saga, concluded that by 2020 nearly two million people will be working past the age of 65. Reduced pensions, better life expectancy and skill shortages will lead to employers throughout the UK relying on older workers, it said. More women are likely to be working as the state retirement age for women will have increased to 65, in line with their male colleagues. By 2020 workforce participation rates are actually expected to be higher for women than for men. 

United Kingdom: Baby boom backlash warning (September 3, 2003)

An independent think tank is warning politicians they could face a backlash from the post-war baby boom generation if they do not deal with their demands as they approach retirement. The generation that protested against the Vietnam War will not keep quiet as it prepares to get its bus pass, Demos are warning. One issue likely to generate protest is that of pensions, with the report saying no government should expect the pensions crisis to be solved by encouraging people to continue working into later life.

United Kingdom: Tea and social security (September 3, 2003)

Work and Pensions Secretary Andrew Smith was competing for attention with "Turkey and Tinsel" breaks to Eastbourne at £169 a throw on the Age Concern stand, as he met pensioners at Westminster's Churchill Hall. Over a slice of cake and a cuppa, he set out to sell the government's new mega benefit - the £2.5bn Pension Credit.

United Kingdom: Pensioners' lost millions (September 3, 2003) 

Pensioners are missing out on millions of pounds worth of state help. Sally West, Age Concern's policy expert, offers some help to those who want to get their hands on the cash.

 Australia: Population ageing faster than thought (September 3, 2003)

Australia in 2051 is likely to have a million more people than previously thought - but most of the extras will be people over 65 years old, the Bureau of Statistics has projected. In a dramatic revision of the nation's official population projections, the bureau's central projection estimates that by 2051, there will be more than five times as many Australians aged 85 and over than there are now. From 290,000 now, the number of those over 85 will inflate to almost 1.6 million, assuming the inexorable growth in human longevity rolls on.

Bangladesh: Tension runs high over rumour of forced retirement (September 3, 2003) 

Bangladesh tension runs high in the civil administration over speculations that officials of a particular batch, who were already discriminated against in promotion and superseded by their juniors, would be given forced retirement. The situation worsened as four joint secretaries and one deputy secretary were forced into retirement on Sunday.

Canada: Canadians worried about retirement (September 2, 2003)

Lack of money for retirement worries many Canadians, a Statistics Canada survey indicates. About one-third of people aged 45 to 59 don't think they have set enough aside to maintain their standard of living in retirement, the agency reported Tuesday. And few people surveyed in 2002 expected to retire before age 60. Only 22 per cent planned to leave work before age 60, and only 44 per cent planned to retire before age 65. The largest share, 45 per cent, planned to retire between 60 and 65. "Only three per cent said they plan on retiring after 65. The remaining 31 per cent said either that they don't know when they plan on retiring, or that they do not intend to retire," the agency found.

India: Move to boost pension reforms — PPF likely to be phased out (September 1, 2003) 

The proposed pension sector reforms are expected to have a major victim, with the Government considering phasing out the hugely-popular three-decade old Public Provident Fund (PPF) scheme. The Government is considering a gradual phasing out of the PPF scheme in order to provide the pension sector with the necessary `critical mass' to make the new structure viable. It is being argued that if the PPF scheme is phased out, a large portion of the deposits flowing into it would find its way into the proposed pension schemes options since they would also be offering similar benefits on tax, besides providing old age income security.

 India: Towards Retiring An Old Pensioning System (August 30, 2003)

 A gradual erosion of traditional old-age support mechanisms and the rise in elderly population highlights the need for strengthening formal channels of retirement savings. As of now, there is skewed coverage of the existing benefit schemes. It favours the organised work force even as informal employment is on the rise. There has been a worsening of the financial situation of government pension schemes against a background of rising expenditure, an underdeveloped private annuity market and finally, the need to increase the domestic rate of savings through higher contractual savings, to strengthen the capital markets.

Save Australia - keep working (August 28, 2003)

Australia's baby boomers have been asked to ditch ideas of an early retirement in the interests of the country's future.The Federal Minister for Ageing, Kevin Andrews, yesterday called for a huge change in attitude to tackle the workforce problems arising from Australia's ageing population."The change required of employees is to abandon expectations of early retirement and ensure they update their skills so they remain employable," Mr Andrews told the Ageless Workforce Symposium in Sydney. "From time to time, a particular generation of Australians is called upon to rebuild our society in order to secure its ongoing prosperity. That time is now."

French may give up bank holiday to fund elderly care (August 28, 2003)
The French government, struggling with the aftermath of a deadly heatwave this month that killed up to 13,600 mainly elderly people, yesterday suggested cancelling a public holiday to fund better care for the aged. The secretary of state for the elderly, Hubert Falco, said the idea was one of the possibilities being explored "to try to establish genuine solidarity in the nation. It would be a holiday on which people would work in the cause of national solidarity."

Russia: VTB Arm N