http://www.watsonwyatt.com Latest Watson Wyatt International Articles and News en-us Copyright 2009 Watson Wyatt Worldwide http://backend.userland.com/rss091 1/5/2009 10:58:15 PM 20 The final report of the Alberta-British Columbia Joint Expert Panel on Pension Standards was published on November 28, 2008. The report makes over 130 recommendations, many of which will require several important legislative and regulatory changes. The importance of finding a balance between protecting the pension promise and encouraging the creation and maintenance of pension plans is highlighted throughout. [CANADA - ENGLISH]http://www.watsonwyatt.com/search/parser.asp?ID=20309According to a new survey, the number of companies implementing cost-cutting measures has increased sharply in just two months. Among the changes are moves towards layoffs, hiring and salary freezes and smaller pay raises. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=20311Spouses will be able to apply to transfer a lump sum of their pension entitlement following a breakdown of their marriage, according to a proposal by Ontario’s Minister of the Attorney General on November 24, 2008. This proposal will imply a significant shift from the current system, in which division of pension income is deferred until payments start – upon the member’s termination, retirement or death. [CANADA - ENGLISH]http://www.watsonwyatt.com/search/parser.asp?ID=20312A recent benchmark study shows how Chilean firms are responding to the new APVC (collective voluntary provisional savings) system. In particular, a key finding is that there will not be an immediate widespread adoption of APVC plans, but that acceptance will be gradual. [CHILE]http://www.watsonwyatt.com/search/parser.asp?ID=20340In response to changes in life expectancy and long-term return assumptions, the Social Security committee of the Swiss parliament has approved a reduction in the minimum required conversion factor, the ratio that converts retirement savings to an annual pension. [SWITZERLAND]http://www.watsonwyatt.com/search/parser.asp?ID=20304A draft regulation to amend unlocking rules and bring the old Life Income Funds (LIF) and Locked-in Retirement Income Funds (LRIF) into line with new LIFs has been proposed by the Ontario Ministry of Finance. If approved, the regulation would allow one withdrawal from LIFs and LRIFs; modify the annual payment from these accounts to match the new LIF regulations; and move the existing Locked-in Retirement Account (LIRA) provisions to a separate, new schedule. [CANADA - ENGLISH]http://www.watsonwyatt.com/search/parser.asp?ID=20307Rules governing lump-sum disbursements in Romania’s pension system have been approved. The state pension has also been raised in changes implemented on October 1, 2008. [ROMANIA]http://www.watsonwyatt.com/search/parser.asp?ID=20308Effective January 1, 2009, mandatory public health insurance and unemployment insurance contributions will change, according to the so-called “Sozialversicherungs-Rechengrößenverordnung 2009”. [GERMANY]http://www.watsonwyatt.com/search/parser.asp?ID=20298Proposals announced in the 2008 Pre-Budget Report, released by the U.K. government on November 24, 2008 include increases in employer and employee National Insurance contributions. This increase is part of a move to improve the economic sustainability of public finances in the medium term, and will take effect largely in 2011 when the government expects the economy to be recovering from the current downturn. Also proposed were several measures intended to provide an immediate boost to the national economy, including a reduction in value-added tax. [UNITED KINGDOM]http://www.watsonwyatt.com/search/parser.asp?ID=20295According to recent survey findings, many defined benefit plans (DB) in the U.K. expect employer contributions to rise following their next valuation. Also, the financial turmoil and subsequent recession is expected to drive pension plan change generally, including plans closing to new entrants, closing to future accrual for existing members or making other changes to reduce costs. [UNITED KINGDOM]http://www.watsonwyatt.com/search/parser.asp?ID=20296Revisions to the Employment Permit System for foreign workers are currently being discussed in Korea. Proposals under discussion are to extend the maximum employment period from the current three years to five years and to increase the minimum wage. If approved, these measures are likely to take effect in 2009. [KOREA]http://www.watsonwyatt.com/search/parser.asp?ID=20154On Aug. 27, the Securities and Exchange Commission (SEC) voted unanimously to propose a road map for shifting U.S. companies from U.S. Generally Accepted Accounting Principles (U.S. GAAP) to International Financial Reporting Standards (IFRS). The move to a global accounting language is intended to improve the comparability and transparency of financial reporting worldwide. It will also have important implications for U.S. employers in how they account for employee benefit and stock plans. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=19704While many HR functions are maintaining the status quo during these challenging market conditions, a large number are still committed to moving work offshore, according to a survey of 66 large multinationals by Watson Wyatt, a leading global consulting firm. The survey, which was conducted in July and August 2008, also finds that multinationals are likely to reduce or reorganize their global HR infrastructure. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=19884Employers believe changes to current pension accounting standards are necessary, but most are not in favour of the changes proposed in the International Accounting Standards Board’s (IASB’s) preliminary views paper, according to a recent survey by Watson Wyatt Worldwide, a leading global consulting firm. [GLOBAL]http://www.watsonwyatt.com/search/parser.asp?ID=19699Although rules adopted in the last few years have paved the way to offering pan-European pension schemes, the number of employers implementing such plans is growing at a gradual pace. However, the issue still bears watching for employers, as some developments in the marketplace could speed adoption of such plans. [EUROPEAN UNION]http://www.watsonwyatt.com/search/parser.asp?ID=19335Call for clarification on cross-border pensions Watson Wyatt welcomes calls for urgent clarification of what constitutes cross-border pensions activity. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=18916Pooling networks have grown in popularity in recent years as multinational companies have realized they can use them for a variety of purposes – negotiating down insurance rates, collecting data and aggregating content to meet disclosure rules. [GLOBAL]http://www.watsonwyatt.com/search/parser.asp?ID=18872Are you considering doing business in Russia? Already there? Then take note: Things are changing on the pensions landscape. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=18793China. Russia. Poland. Singapore. Mexico. With stiffer global competition and a weak U.S. dollar, many companies are considering expansion into these and other countries. The reasons are simple: To create new markets for products and services, establish a foothold for future business in a particular region and source more efficient pools of labor. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=17924China’s new labor contract law is just 14 pages long, but its impact looms large for any company with employees in that country. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=18664