Keylane’s Post

Alecta is a Swedish occupational pension provider that manages the pension assets of over 2.4 million customers. It was established in 1917 and has since grown to become one of the largest pension providers in Sweden. Heimstaden is a Swedish real estate company that specializes in residential properties. It was founded in 1997 and has since expanded its operations to several countries, including Sweden, Denmark, Norway, Germany, and the Netherlands. Heimstaden focuses on acquiring and managing rental properties, providing housing solutions for individuals and families. In December 2020, Alecta and Heimstaden announced a joint venture to invest in and develop sustainable rental housing in Sweden. The partnership aims to combine Alecta's long-term capital and sustainability expertise with Heimstaden's experience in the residential real estate market. This collaboration between Alecta and Heimstaden reflects a growing trend of pension funds investing in real estate as a way to diversify their portfolios and generate stable returns. Additionally, the focus on sustainability aligns with the increasing importance of environmental, social, and governance (ESG) factors in investment decisions.

JASPER ROUNDTABLE COPENHAGEN. We took quick 24-hour trip to Denmark for a remarkable Jasper Roundtable event, co-sponsored by our friends at ATP – the largest pension fund and processing business in the remarkable Danish pension system. With some $1 trillion under management (~200% of GDP), the system is routinely ranked as one of the best retirement finance systems on earth, delivering robust coverage and income replacement. The Danish system deploys a mandatory collective defined contribution (CDC) system, built around a strategic goal of pooled longevity risk and mandatory annuitization to deliver Danish workers many of the retirement attributes of defined benefits pensions. ATP organized a cross-sectoral team of stakeholders including working pension professionals, industry leaders, researchers, consultants and asset managers. We learned how this remarkable system evolved, explored similarly accomplished systems in Sweden and Netherlands and asked a rather big question: could the Danish/Nordic approach stand as a model for Germany, France, Italy and Spain, where private retirement finance systems comprise less than 10% of GDP. While the system has its roots in the labor movement of the 19th Century, the core achievement of the system turns on the 1987 Tripartite Agreement known as the “Joint Declaration” (Fælleserklæringen) that laid the groundwork for compulsory labor market pensions. This accord was achieve through deep collaboration between government , political parties and social partners (labor and business groups) – a very Danish approach in a system renowned for both capital market engagement and social/economic solidarity. Thanks to our friend and colleague Michael Jørgensen of ATP for assembling this remarkable group. For Jasper Forum: John Mitchem and Jorik van Zanden.

It's been nearly six years since Dean wrote this blog on CAAT Pension Plan's DBplus, and it is amazing to see their growth since then. https://lnkd.in/g_KZSfVT #actuarialsolutionsinc #pension #caat #retirement #fiduciary

This morning I posted about my mums recent poor experience whilst trying to access her pension benefits. However, that experience was relatively tame compared her previous experience on the same subject…… Sometime last year she accessed her first pension, which was a DB pension. She opted for the maximum PCLS and a reduced annual pension. At some point later, when the benefits were in payment, she enquired with the administrator whether she could trivially commute these benefits as the pension was relatively small. What happened next can only be described as ‘alarming’. Firstly, the letter explaining why she couldnt trivially commute her benefits was nothing short of a disgrace. It was worded so poorly that I could barely understand what they were saying, never mind her. The reason I couldn’t understand it, was because it was in broken English. I knew it had been done offshore. Now, this isn’t a dig at offshore teams. I’ve worked with, and helped develop, some very good offshore teams over the years. But, if the transitioning of work offshore isn’t done properly, then this can have a disastrous impact on member satisfaction. Secondly, it transpires that the benefits in payment were incorrect. They had not restricted her lump sum to account for fact she was retiring early and that the annual pension did not cover the GMP. Both of these points triggered some alarm bells, specifically regarding whether anything has been calculated correctly. I did contemplate asking the administrator to provide the benefits at date of leaving, and the revaluation method, and I’d double check myself that they have revalued the benefits correctly in the first place. But, it really should come to this. That being said, I can have some sympathy with calculation errors, as we all make mistakes. But the communication issue, is something I have no sympathy with at all. I probably should add that this Adminsitrator was different to the one in my post earlier today. So, my mum has had two encounters with administrators when it comes to accessing her benefits, and it’s fair to say both encounters have been pretty underwhelming.

Well funded pensions should consider Liabillity Driven Investing (LDI) as part of the investment portfolio mix to stabilize funding levels.

Which pension company charges you to put money IN your pension? It's the one that looks after the retirement funds of a third of the British workforce

PMI’s symposium focuses on pension management – thank goodness!

Offering a temporary lump sum window to active employees over age 59½ has emerged as a valuable pension de-risking strategy in recent years. This article provides an overview of this strategy to help #plansponsors position themselves and their participants for success in the evolving pension landscape.

Offering a temporary lump sum window to active employees over age 59½ has emerged as a valuable pension de-risking strategy in recent years. This article provides an overview of this strategy to help #plansponsors position themselves and their participants for success in the evolving pension landscape.

Offering a temporary lump sum window to active employees over age 59½ has emerged as a valuable pension de-risking strategy in recent years. This article provides an overview of this strategy to help #plansponsors position themselves and their participants for success in the evolving pension landscape.