first_imgThe new IORP II Directive will increase costs in the second pillar in Germany despite not containing further capital requirements, according to Mark Walddörfer, board member at the Düsseldorf-based pensions consultancy Longial.Under the revised directive for pension funds in Europe, heads of retirement provision in companies will no longer be allowed –apart from a few exceptions – to run the company’s pension fund.“But in Germany, this is a common arrangement that ensures cost efficiency,” Walddörfer said, adding that it would be “important” for Germany to keep these arrangements intact.Further, he warned that the increased requirements respecting information for members and data for supervisors would increase costs in the second pillar and were “not necessarily adding value”. He quoted a survey by the German federation of company pension funds, the VFPK, which estimates an increase in administration costs of one-third.His major criticism regarding the IORP II is, however, the definition of pension funds as ‘financial service providers’.“In fact, they are social institutions created by employers not comparable to life insurers despite being regulated within a similar legal framework out of practical reasons,” Walddörfer said.While this was only a question of wording at the moment, the actuary warned that it might lead to problems in 2018 at the planned revision of the IORP II.“The danger is that capital requirements similar to those in Solvency II will then be included into the directive based on this definition – therefore we should try and change it now,” he said.Walddörfer said he was convinced that a copy of Solvency II-like capital requirements for IORP would “kill them immediately”.He also sees a danger of Solvency II being “introduced via the back door” with articles 29 and 30 on risk evaluation.“In the worst case, pension funds will have to assess risks with marked-to-market parameters,” he said.The Longial board member thinks German supervisor BaFin may introduce new risk parameters on top of those existing for IORP, and that EIOPA might want a say in those assessments.“And the most important question remains, why investors with a long-term investment horizon should use any short-term marked-to-market criteria for assessing their funding status?” Walddörfer said.He advised pension funds to “wait before implementing any of the IORP II requirements”, as changes were still possible.All in all, he thinks IORP II requirements will “weaken” German pension funds and asked whether this was “going in the right direction”.However, he pointed out that Pensionskassen were basically “on their way out” anyway, as few new pension schemes have been set up under this legal framework in recent years.“A Pensionsfonds is much more flexible, both in investments as well as managing liabilities, as it can be underfunded for a limited time and apply a higher discount rate,” he said. ”Therefore, this segment will continue to grow.”last_img read more

first_img Facebook Twitter Google+ Published on February 3, 2018 at 6:14 pm Contact Nick: | @nick_a_alvarez Gabrielle Cooper knows what it will take to topple Louisville: Stop Myisha Hines-Allen and Asia Durr.The dynamic duo averages 34 points per game, nearly 43 percent of the Cardinals’ offense, and has powered No. 4 UofL (23-1, 9-1 Atlantic Coast) to a one-loss record. This Sunday, they pose the biggest threat to Syracuse (17-6, 5-5) dropping two-in-a-row at home for the first time in six years, back when the Orange was part of the Big East.“They do a good job of making their team better,” Cooper said. “They do so much more than what the stats may see … If we shut them down, we cut the head off the dragon.”In order for Syracuse to win its biggest home game of the year, it will need to key in on Hines-Allen and Durr, Louisville’s star pairing that outmatches Syracuse’s scoring duo of Tiana Mangakahia and Miranda Drummond.Louisville enters the contest with one of the best 3-point shooting offenses in the country. Its 39.0-percent clip from behind the arc is the 11th best in the country and second-best in the conference. The success from behind the arc is mostly because of Durr’s excellence.AdvertisementThis is placeholder textDurr, a 5-foot-10 junior guard, hits on 46.1 percent of her 3s and paces UofL with 19.7 points per game. Yet, SU head coach Quentin Hillsman said the Orange won’t deviate from its typical gameplan on Sunday, even for a player he regarded as “top two or three scorer in the country.”In the Cardinals’ lone loss of the season against Florida State, a 50-49 nailbiter in the KFC Yum! Center, Durr shot 5-for-21 from the field and 1-for-8 from 3. That performance came in the midst of a 2-for-16 shooting slump from 3 in which she scored 27 points, her lowest three-game total this season. In Louisville’s last two games, both victories, she has gotten back on track. Durr has made four 3s and scored 47 points.“I have no idea what Florida State did,” Hillsman said. “We’re going to play how we play. When you start doing not what you do, it hurts your team.”The last time Syracuse matched up against an elite 3-point shooter was when it faced Taylor Emery, a 41-percent shooter, and Virginia Tech this past Thursday. Throughout the game, SU bracketed Emery whenever the ball was near her. The junior guard still slipped Orange defenders a few times and made two 3s.Whenever she found space, the SU bench hollered “Shooter,” and Hillsman called out defenders by name to pay attention. Syracuse’s 3-point defense was serviceable in the second half against Virginia Tech, but that led to other issues.“We have to bang inside,” Cooper said. “… If we limit their points, keep Asia off the line, keep Myisha off the glass and we should be fine.”Hines-Allen, a 6-foot-2 senior, averages a double-double and operates primarily in the paint and the ability to exploit one of SU’s biggest problems in conference play. UofL has scored 34 points in the paint in each of its last three games and hasn’t been out-rebounded since its loss to FSU.Poor rebounding limited Syracuse in its recent three-game losing streak and interior defense was what prevented a late comeback in the 73-64 loss against Virginia Tech.“I don’t think a loss hurts you going into Louisville,” Hillsman said after Thursday’s game. “… The only thing we can do is come out and be better prepared on Sunday.”After dominating non-conference play, SU has been erratic. Hillsman pointed out that his team has no bad losses, but aside from a 76-69 home upset of then-No. 8 Florida State on Jan. 7, it has no standout wins, either.Last year, Syracuse was in a similar position to earn a statement win against a top-ranked team on its home floor. The Orange welcomed then-No.7 Notre Dame, in front of the biggest crowd in program history, and was defeated.This Sunday, SU gets another chance. Commentslast_img read more