The Church Commissioners excluded, on ethical grounds, more than 800 companies from potential investment last year, including, they report, 38 companies that failed to engage with them over connections with Russia.

The figures are set out in their latest stewardship report, An Ethical and Responsible Approach, published last week. It is prepared annually to meet the reporting obligations of the UK Financial Reporting Council’s Stewardship Code and the Principles for Responsible Investment.

The total endowment fund was valued at £10.4 billion at the end of 2023 — up from £10.3 billion at the end of 2022 (News, 2 June 2023). The report covers the first year of the 2023-25 triennium, in which the Commissioners have committed themselves to distributing £1.2 billion in support of the Church’s mission — an increase of about 30 per cent on the previous triennium (News, 7 June).

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The Church Commissioners disinvested, on ethical grounds, from more than 800 companies last year, including, they report, 133 companies that failed to engage with them over connections with Russia https://t.co/pPbbJCy0N8

— Church Times (@ChurchTimes) October 15, 2024

Public pension systems in the U.S. have seen a significant increase in unfunded liabilities, particularly during the Great Recession. Between 2007 and 2010, unfunded liabilities grew by over $1.11 trillion—a 632% increase—reflecting the financial challenges faced during that period. Despite some improvements in funding ratios over the last decade, these liabilities have continued to rise, underscoring ongoing financial pressures.

As of the end of the 2023 fiscal year for each public pension system, total unfunded public pension liabilities (UAL) reached $1.59 trillion, with state pension plans carrying the majority of the debt.

The median funded ratio of public pension plans stood at 76% at the end of 2023, but stress tests suggest that another economic downturn could significantly increase unfunded liabilities, potentially raising the total to $2.71 trillion by 2025.

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At the end of the 2023 fiscal year, the nation's public pension systems had $1.59 trillion in total unfunded liabilities.https://t.co/msg89p70Mr

— Pension Integrity Project (@ReasonPensions) October 3, 2024

More people are making hardship withdrawals from their 401(k) accounts, raiding retirement funds to cover emergency medical expenses or to avoid losing a home.

Hardship withdrawals from Fidelity Investments 401(k) accounts have tripled in five years, according to a report from the investment firm. The share of plan participants withdrawing money rose from 2.1% in 2018 to 6.9% in 2023.

“It’s a big problem, and it’s a growing problem,” said Kirsten Hunter Peterson, vice president of thought leadership at Fidelity.

Vanguard reports that hardship withdrawals have doubled in a four-year span, from a monthly rate of 2.1 transactions per 1,000 participants in 2018 to 4.3 in 2022.

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Hardship withdrawals from 401(k) accounts have tripled in five years, according to Fidelity Investments. The share of plan participants withdrawing funds rose from 2.1% in 2018 to 6.9% in 2023. https://t.co/ktQZtj4Fus

— Stephen Miller, CEBS (@smiller_cebs) October 26, 2023

The Church of England Pensions Board has joined five other pension funds to bring legal action against Volkswagen AG (VW), after it refused repeated attempts to reveal crucial information on its corporate climate-lobbying activities.

The funds, four Swedish and one Danish in addition to the C of E board, are all part of the Institutional Investment Group on Climate Change (IIGCC) and the Climate Action’s 100+ initiative. These have asked the company repeatedly to clarify its lobbying position. VW discloses trade association memberships, but does not disclose how the goals of these associations align with its own climate goals.

The boards wanted to table an agenda item at VW’s AGM, seeking publication of a report setting out how the company’s lobbying of policy-makers matched its stated ambition to support the Paris Agreement goals by becoming a net-zero company. VW refused to table the item.

The investors say that they tried over several years to get information before tabling the amendment. The case, supported by the legal charity ClientEarth, will test whether VW has the right to refuse the agenda item.

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C of E Pensions Board joins fight to force VW to open its books on climate lobbying https://t.co/F1UtlH7M2M

— Church Times (@ChurchTimes) October 24, 2022

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On the third anniversary of the mining disaster that killed 270 people in Brumadinho, in Brazil, the Church of England Pensions Board has stepped up the pressure on companies to adopt new global safety standards.

The disaster happened when a mine-waste facility, a tailings dam, collapsed. The new Global Industry Standard on Tailings Management was developed in response by a coalition of investors led by the Pensions Board and the Council on Ethics of the Swedish AP Funds…. Now, they have published the names of the companies that have committed themselves to the new measures.

Seventy-nine mining companies — one third of those employing tailings dams — have either made a commitment to the new Global Industry Standard on Tailings Management or are still assessing their compliance. The list includes several of the largest companies, including BHP, Anglo, Glencore, Rio Tinto, and Vale.

The Brumadinho disaster of 2019 is not an isolated incident. Another 12 such collapses have been reported in the past three years. In three instances — two of which took place in Myanmar and one in Peru — workers were killed. The collapses also cause significant environmental damage.

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Pensions Board puts pressure on mining companies to adopt global safety standards https://t.co/JZiUKABDIl

— Church Times (@ChurchTimes) January 28, 2022

Tucked inside the $1.9 trillion stimulus bill that cleared the Senate on Saturday is an $86 billion aid package that has nothing to do with the pandemic.

Rather, the $86 billion is a taxpayer bailout for about 185 union pension plans that are so close to collapse that without the rescue, more than a million retired truck drivers, retail clerks, builders and others could be forced to forgo retirement income.

The bailout targets multiemployer pension plans, which bring groups of companies together with a union to provide guaranteed benefits. All told, about 1,400 of the plans cover about 10.7 million active and retired workers, often in fields like construction or entertainment where the workers move from job to job. As the work force ages, an alarming number of the plans are running out of money. The trend predated the pandemic and is a result of fading unions, serial bankruptcies and the misplaced hope that investment income would foot most of the bill so that employers and workers wouldn’t have to.

Both the House and Senate stimulus measures would give the weakest plans enough money to pay hundreds of thousands of retirees — a number that will grow in the future — their full pensions for the next 30 years. The provision does not require the plans to pay back the bailout, freeze accruals or to end the practices that led to their current distress, which means their troubles could recur. Nor does it explain what will happen when the taxpayer money runs out 30 years from now.

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Tucked inside the $1.9 trillion stimulus bill that cleared the Senate on Saturday is an $86 billion aid package that has nothing to do with the pandemic. https://t.co/a35w9O2xhR

— Anupreeta Das (@PreetaTweets) March 8, 2021

The Treasury has been at the centre of the resistance to demands for change highlighted by our War Widows’ Pensions Crusade.

In 2015 the Government ruled war widows could keep the £7,500-a-year “killed in active service” pension if they remarried.

But around 300 widows missed out as they’d remarried before then and the law was not backdated.

The Bishop of Peterborough, the Rt Rev Donald Allister, said the “particular scandal of this situation is that it only applies to those where the incident causing the death occurred between April 1973 and April 2005”.

Those widowed before or after didn’t lose their benefit if they remarried, he said. “This is complete nonsense and is shameful. It must be put right.”

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Pension fury as Boris told excuses over war widows scandal ‘will not wash’ anymore | UK | News | https://t.co/tK7ClQXCvk https://t.co/wwe51vkNf9

— Deirdre Walsh (@magicdmw) February 26, 2020

Bob Orozco barks out instructions like a drill sergeant. The 40 or so older adults in this class follow his lead, stretching and bending and marching in place.

It goes like this for nearly an hour, with 89-year-old Orozco doing every move he asks of his class. He does that in each of the 11 classes he teaches every week at this YMCA in Laguna Niguel, Calif.

“I probably will work until something stops me,” Orozco says.

He may be an outlier, still working at 89, but statistics show that there may be more people like him in the near future. About 1 in 4 adults age 65 and older is now in the workforce. That number is expected to increase, making it the fastest-growing group of workers in the country.

Older adults are turning their backs on retirement for many reasons. Some, like Orozco, just love what they do. Others, though, need the money, and there are a lot of reasons why they do.

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Not everyone is ready to retire at age 65. #npr #work https://t.co/64vnER1EXE

— Anthony Washington (@coach_wash) October 6, 2019

He pointed to a “woefully unprepared” U.S. population.

“In the decades to come, we will witness millions of elderly American’s, Baby Boomers and others, slipping into poverty.” he said in a podcast this week with the Peak Prosperity blog. “‘Too frail to work, too poor to retire’” will become the new normal for many elderly Americans.”

Siedle threw out some startling numbers to show just how much pensions are underfunded, a pervasive problem made worse by their inability to reach performance targets, which is typically set around 7%.

“Warren Buffett BRK.A, +1.41% himself has said that is an unrealistic return,” Siedle said in the interview. “Wall Street’s solution to every investor problem is, and will always be, pay us more fees.”

Investors then pay those higher fees for “ever riskier rolls of the dice,” in an effort to chase returns, which “has resulted, predictably, in worse performance.”

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“‘Too frail to work, too poor to retire’” will become the new normal for many elderly Americans.” https://t.co/9RCCLyyP73

— Retirement 360 (@Retirement_360) April 13, 2019

Nearly half of middle-class Americans face a slide into poverty as they enter their retirement, a recent study by the Schwartz Center for Economic Policy Analysis at the New School has concluded.

That risk has been driven by depressed earnings, depressed asset values and increased health-care costs — causing 74 percent of Americans planning to work past traditional retirement age. Additionally, both private and public pension plans have been allowed to become seriously underfunded. So what can be done?

Fundamental changes in the structure of the U.S. economy, combined with increased health-care costs and lack of saving, have created a financial trap for millions of American workers heading into retirement.

Roughly 40 percent of Americans who are considered middle class (based on their income levels) will fall into poverty or near poverty by the time they reach age 65, according to the study.

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Fundamental changes in the structure of the U.S. economy, combined with increased health-care costs and lack of saving are creating a future road to poverty for much of the middle class https://t.co/gflU6zR4Qe @ElliotDofCowden

— Albert Fong (@albertfong98) October 12, 2018

A public university president in Oregon gives new meaning to the idea of a pensioner.

Joseph Robertson, an eye surgeon who retired as head of the Oregon Health & Science University last fall, receives the state’s largest government pension.

It is $76,111.

Per month.

That is considerably more than the average Oregon family earns in a year.

Oregon — like many other states and cities, including New Jersey, Kentucky and Connecticut — is caught in a fiscal squeeze of its own making. I

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'That is considerably more than the average #Oregon family earns in a year.Oregon-like many other states and cities, including NJ, Kentucky+ Conntct-is caught in a fiscal squeeze of its own making' 2/2 https://t.co/Dbs9fcRFk2 #economy #pensioncrisis #localgovt #stategovt #ethics

— Kendall Harmon (@KendallHarmon6) April 15, 2018

A picture with SO many implications…. #economy #politics #demographics #babyboomers #entitlements #budget #generationalconflict pic.twitter.com/zOhjr9BFWN

— Kendall Harmon (@KendallHarmon6) October 12, 2017

The combined debt held by U.S. public pension plans will top $1.7 trillion next year, according to a just-released report from Moody’s Investors Services.

This “pension tsunami” has already forced towns like Stockton, California and Detroit, Michigan into bankruptcy. Perhaps no government mismanaged their pension as badly as Puerto Rico, where a $43 billion pension debt forced the commonwealth to seek protection from the federal government after having defaulted on its obligations to bondholders ”” a default which is expected to spread to retirees in the form of benefit cuts.

While the disastrous outcome of Puerto Rico’s pension plan ”” which is projected to completely run out of assets by 2019 ”” represents the worst-case scenario, the same series of events that led to its demise can be found in most public pension plans nationwide.

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In reality, however, many working Americans simply can’t afford to retire. Fewer workers today than in the past say a pension will be a major income source in retirement, and many have been unable to save sufficiently during the economic slowdown of the past decade. Seven in 10 employed adults told Gallup in April that they are worried about not having enough savings for retirement. As a result, they now need to work as long as possible to build up their retirement nest eggs.

At the moment, most workers are forgoing any thought of retiring before 62, the minimum age to receive partial Social Security retirement benefits, while nearly a third are planning to hold off until after age 67.

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Since the financial crisis of 2007-08, which Western leader could boast of spreading ownership in any important way? In the U.S. and Britain, the percentage of citizens owning stocks or houses is well down from the late 1980s. In Britain, the average age for buying a first home is now 31 (and many more people than before depend on “the bank of Mom and Dad” to help them do so). In the mid-’80s, it was 27. My own children, who started work in London in the last two years, earn a little less, in real terms, than I did when I began in 1979, yet house prices are 15 times higher. We have become a society of “have lesses,” if not yet of “have nots.”

In a few lines of work, earnings have shot forward. In 1982, only seven U.K. financial executives were receiving six-figure salaries. Today, tens of thousands are (an enormous increase, even allowing for inflation). The situation is very different for the middle-ranking civil servant, attorney, doctor, teacher or small-business owner. Many middle-class families now depend absolutely on the income of both parents in a way that was unusual even as late as the 1980s.

In Britain and the U.S., we are learning all over again that it is not the natural condition of the human race for children to be better off than their parents. Such a regression, in societies that assume constant progress, is striking. Imagine the panic if the same thing happened to life expectancy.

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Premature withdrawals from retirement accounts have become America’s new piggy bank, cracked open in record amounts during lean times by people like Cindy Cromie, who needed the money to rent a U-Haul and start a new life.

Her employer, the University of Pittsburgh Medical Center, had outsourced Cromie’s medical transcription work. Cromie said the move cut her income by as much as 60 percent, at times leaving her with minimum-wage pay.

So, last year, at age 56, she moved about 90 miles from her home in Edinboro, Pennsylvania, into her mother’s basement. To make ends meet as she moved and then quit the job, Cromie pulled out $2,767 from her retirement savings.

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The daughter of a 92-year-old priest who is paying interest on a loan agreed with the Church of England Pensions Board at 8.6 per cent – more than twice the cur-rent average – has questioned the morality of the scheme.

In 1985, the Revd Eric Quin took out a shared-equity loan in order to purchase a three-bedroom cottage in Cheshire for £45,750. With his wife, he paid £20,750 to put down a 45-per-cent deposit. The Pensions Board paid the remainder, £26,500, on the understanding that it would be entitled to 55 per cent of the final sale price.

The initial interest rate was three per cent – much lower than the 12-per-cent mortgage rate at the time. This rate was gradually increased in line with the pensions of all the fund’s members. Mr Quin is now paying interest at a rate of 8.6 per cent. The property has risen in value to £200,000.

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True to their “live to work” reputation, some baby boomers are digging in their heels at the workplace as they approach the traditional retirement age of 65. While the average age at which U.S. retirees say they retired has risen steadily from 57 to 61 in the past two decades, boomers — the youngest of whom will turn 50 this year — will likely extend it even further. Nearly half (49%) of boomers still working say they don’t expect to retire until they are 66 or older, including one in 10 who predict they will never retire.

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While plenty of baby boomers, born from 1946 to 1964, have become affluent and many elderly around the U.S. face financial hardship, the wealth disparity of this father and daughter is emblematic of a broad shift occurring around the country. A rising tide of graying baby boomers is less secure financially and has a lower standard of living than their aged parents.

The median net worth for U.S. households headed by boomers aged 55 to 64 was almost 8 percent lower, at $143,964, than those 75 and older in 2011, according to Census Bureau data. Boomers lost more than other groups in the stock market and housing bust of 2008, and many also lost their jobs in the aftermath at a critical point in their productive years.

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The department of finance has said California’s debt was paid down to less than $28-billion (U.S.). But that doesn’t include government employee pension and health benefits that have been promised but not funded. Stanford University estimates that unfunded pension liabilities are as much as $497-billion.

Meantime, a report by the Pew Center suggests that unfunded state retiree liabilities are $77-billion and growing. Most agree that until California deals with these two areas, it will only be pecking away at its monstrous fiscal challenges. It’s difficult to imagine state legislators not having to deliver some extremely unpleasant news to tens of thousands of government employees in the coming years.

Despite its financial woes, California continues to talk about a high-speed rail line between Los Angeles and San Francisco that would cost tens of billions. On another front, the state ruled against allowing fracking for oil and gas despite having the largest shale deposits in the country. Many believe this one move alone could have helped release California from the grips of financial despair.

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The pension age could be pushed back to 70, and older Australians forced to use growing equity in their homes to help pay for government services under proposals designed to help Australia cope with an ageing population.

In a paper titled ”An Ageing Australia: Preparing for the Future”, the Productivity Commission projects Australia’s population will grow from about 23 million in 2012 to about 38 million by 2060, with a substantial increase in the number of retirees as people live longer.

That will mean lower overall participation in the workforce, and more pressures on governments to pay for higher health, aged care and pension costs.

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The Anglican Church of Canada has asked clergy for its support in a plea to Ontario pension fund regulators to give it a three year extension of time to address a cash crunch in the church’s pension plan.

In a July 2013 letter to the 1,600 active members and 2,600 retirees covered by the church pension programme the plan administrators told the clergy their approval was needed before the government would grant the plea for more time. “With funding relief, we will have three years to try to improve our plan’s funding level,” they wrote. “At the end of three years, we will do another valuation of the plan. If there is still a solvency funding shortfall, we will likely have no choice but to cut benefits.”

The average age of plan participants is 52.5….

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Church Pension Group issued a statement Tuesday saying it is trying to ensure that clergy and employees in parishes that have left The Episcopal Church have access to their funds, in accordance with federal laws.

“In doing so, we are following protocols required by the Internal Revenue Code to avoid any adverse consequences for the participants in the plans,” the statement said. “We expect to complete this process shortly. In the meantime, all funds remain invested in the options selected by these employees, and all accounts are fully viewable on (a) website.”

[Canon Jim] Lewis said he has consulted lawyers for the diocese and is unaware of any legal issues precluding employees from rolling over their plans. He believes that preventing employees from doing so could be illegal.

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The retirement savings of more than 80 non-clergy employees of the Diocese of South Carolina and its parishes are being held hostage by their former pension plan at the Episcopal Church (TEC).

The lay employees have been trying to arrange for the rollover of their retirement savings since February, when they first contacted the Church Pension Group, which provides retirement, health and other benefits to employees of The Episcopal Church, its parishes, dioceses and other institutions. The employees became eligible to rollover their funds into another qualified plan when their employer, the Diocese or the parishes that voted to disassociate from the denomination, officially ceased to be employed by any TEC organization or parish.

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To retirees, the offers can sound like the answer to every money worry: convert tomorrow’s pension checks into today’s hard cash.

But these offers, known as pension advances, are having devastating financial consequences for a growing number of older Americans, threatening their retirement savings and plunging them further into debt. The advances, federal and state authorities say, are not advances at all, but carefully disguised loans that require borrowers to sign over all or part of their monthly pension checks. They carry interest rates that are often many times higher than those on credit cards.

In lean economic times, people with public pensions ”” military veterans, teachers, firefighters, police officers and others ”” are being courted particularly aggressively by pension-advance companies, which operate largely outside of state and federal banking regulations, but are now drawing scrutiny from Congress and the Consumer Financial Protection Bureau.

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…the Labor Department’s latest jobs snapshot and other recent data reports present a strong case for crowning baby boomers as the greatest victims of the recession and its grim aftermath.

These Americans in their 50s and early 60s ”” those near retirement age who do not yet have access to Medicare and Social Security ”” have lost the most earnings power of any age group, with their household incomes 10 percent below what they made when the recovery began three years ago, according to Sentier Research, a data analysis company.

Their retirement savings and home values fell sharply at the worst possible time: just before they needed to cash out. They are supporting both aged parents and unemployed young-adult children, earning them the inauspicious nickname “Generation Squeeze.”

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The finances of the US’s multi-employer pension schemes have deteriorated so quickly over the past year that the body that insures them will almost certainly run out of cash in 20 years, according to a new report.

The chances of the Pension Benefit Guarantee Corporation ”“ the publicly created but privately funded body that insures the nation’s occupational pension schemes ”“ going bust went from 1 in 3 at the end of 2011 to more than 9 in 10 by the end of 2012, a report prepared for the PBGC and released on Tuesday said.

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Justin Welby, a former oil executive, may have hoped to have left the problems of Mammon behind on his appointment as Archbishop of Canterbury, but he could be plunged into an immediate cash crisis.

The Church of England’s pension deficit could reach £500m by the end of this year, putting a huge financial burden on congregations, an independent pensions consultant has warned.

John Ralfe said congregations, who already pay £68m annually to support the Clergy Pensions Scheme’s 24,000 members, will have to find £108m a year if an existing plan to eliminate the deficit over 12 years is not extended.

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