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_imgWASHINGTON — Former Representative Baron Hill said Monday that he was removing his name from the ballot in the race against Representative Todd Young.Hill said he is pulling out to give Democrats a better chance of taking the Senate.“I do not want to stand in the way of Democrats winning Indiana and the U.S. Senate,” Hill said in a statement. “That would not be fair to my party or my state. And, the stakes are far too high in this election not to put my country above my own political ambitions.”CNN reported Monday that Bayh will run for his old Senate seat, now held by retiring GOP Senator Dan Coats.Republican Representative Todd Young was favored to win the seat over Hill.WRBI will update this story as more information becomes available.last_img read more


first_imgAccording to him, the government had a role to play in the development of the NFSC by providing funds when necessary, to enable it execute its programmes for the development of football in the country.He also affirmed that the NFSC would work together with the technical committee as well as the coach of the Super Eagles to ensure effective performance in any tournament, whether locally or internationally, stating that programmes such as regular exercises, table tennis practices and football matches would be introduced into the activities of the NFSC, to create more sporting awareness and to ensure physical fitness. Share this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegram The Team Manager of El Marino Sports Club, Seyi Adefarati, was last weekend elected the vice chairman of the Nigeria Football Supporters Club (NFSC) at the National Stadium, Surulere, Lagos.Speaking after his victory, Adefarati stated that with his new position, he would ensure that the NFSC supports football at any national tournament, sponsor supporters to international tournaments, supports the national team, with members of his team, and also put the country on the world stage when it comes to football.last_img read more