FTK to hit Dutch pension funds’ coverage ratios, consultancies warn

first_img“If the Ministry of Social Affairs is to adopt the recommendations of the ultimate forward rate committee, the new discount rate would be slightly lower than the current one and result in a lower coverage ratio,” he said.However, he said he could not confirm whether a lower discount rate would lead to new rights cuts.“So far, we haven’t conducted exact calculations about the effects on the funding of a new curve,” he said.“In the new situation, for example, the current three-month average of the discount rate would be abolished.”Krijgsman pointed out that Jetta Klijnsma, state secretary for Social Affairs, had said no rights discounts needed to be applied at the end of 2014, and that, under the new FTK – still scheduled to come into force on 1 January 2015 – cuts could be spread out over a 10-year period.Driessens’s response came on the back of calculations of the average coverage ratio, which were, according to Aon Hewitt, stable at 109% in April but so far have not improved in 2014.The company said liabilities increased by 1.9% in April in the wake of falling interest rates, which caused the three-month average of the discount rate to fall.On the other hand, the assets of Dutch pension funds grew by 1.4% on average, largely thanks to a 1.7% increase in fixed income holdings, but also due to a value increase of equity investments of 0.3%, according to Aon Hewitt.Mercer, which linked its calculations to the most recent figures of supervisor De Nederlandsche Bank (DNB) also concluded that average funding had hardly changed, estimating a 0.1 percentage point drop to 110.4% in April.According to Krijgsman, the 30-year swap rate dropped from 2.55% to 2.45% in April, while the three-month average of the discount rate fell from 2.66% to 2.6%.Dennis van Ek, principal and actuary at Mercer, added that, based on the actual market rate at April-end, the average coverage ratio of Dutch pension funds would have been 104.8%. Aon Hewitt has warned that a number of Dutch pension funds will find themselves with insufficient financial buffers when the new financial assessment framework (FTK) is enacted if their coverage ratios fail to improve significantly in the coming months.Frank Driessen, chief commercial officer for retirement and financial management at the pensions adviser, said: “This would threaten to erode their indexation potential and might even lead to new rights discounts.”Driessen also argued that the lower discount rate for liabilities under the new FTK would generally hurt schemes’ funding. Edward Krijgsman, team leader for monitoring at Mercer in the Netherlands, agreed.last_img read more

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Lions skip practice after discussing shooting of Jacob Blake

first_img SUBSCRIBE TO US Written By LIVE TV First Published: 26th August, 2020 07:04 IST FOLLOW US Last Updated: 26th August, 2020 07:04 IST Lions Skip Practice After Discussing Shooting Of Jacob Blake The Detroit Lions decided not to practice on Tuesday, protesting after a Black man was shot by police in Wisconsin. “We came up with this one as a unit,” Detroit defensive end Trey Flowers saidcenter_img COMMENT Associated Press Television News WATCH US LIVE The Detroit Lions decided not to practice on Tuesday, protesting after a Black man was shot by police in Wisconsin. “We came up with this one as a unit,” Detroit defensive end Trey Flowers said.Lions coach Matt Patricia opened the team’s morning meeting by allowing players to share their thoughts on the shooting of Jacob Blake, who is paralyzed from the waist down. Blake was shot Sunday, three months after the death of George Floyd at the hands of Minneapolis police.The players continued to discuss Blake’s shooting and shared their personal experiences regarding race in the locker room.Lions players and Patricia later filed out of the team’s practice facility, pushing a dry-erase board on wheels along the sidewalk to address the media. The words: “The world can’t go on,” was written in blue on one side of the dry-erase board and “We won’t be silent!! One pride,” was in black on the other side of the white board.Patricia said he is proud of the players and hopes they inspire other people and teams in the NFL to take a stand for social justice.“I challenge everybody to do this, everybody in the league to do this,” Patricia said.“We’re dealing with times right now, where something is shaking in the world,” Flowers added. “It’s definitely an unprecedented time with the pandemic and something that has been going on for quite some time with the social injustice.”Colin Kaepernick, exiled from the NFL since the 2016 season when he took a knee during the national anthem, shed light on police brutality and racial inequality while playing for the San Francisco 49ers.Following the nationwide protests in the aftermath of Floyd’s death, NFL Commissioner Roger Goodell apologized to players for not listening to them earlier, encouraged them to protest peacefully, and denounced racism.Lions quarterback Matthew Stafford said social justice issues were discussed as a team in Zoom meetings during the spring, when players were prevented from gathering at the team’s facility due to the COVID-19 pandemic. The conversations continued when the team reported for training camp earlier this month, and in face-to-face discussions Tuesday morning a player shared that his mother calls him nightly to make sure he arrived home safely.“It’s an incredible group of guys that we have in this locker room led by a coach who is unwavering in his ability to give us space to talk,” Stafford said. “We spent all morning talking about it. You have to give a lot of credit to coach for allowing us to do that. I’ve never been more proud.“We had our team meeting this morning and no football was talked about,” Stafford added.Image credits: AP last_img read more

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