Month: September 2021

House Panel Votes to Rein in Large Retirement Account Balances

Mary Pat Campbell

Link: https://www.asppa.org/news/browse-topics/house-panel-votes-rein-large-retirement-account-balances

Excerpt:

Mega-Roth, backdoor IRAs and large retirement account balances would be limited under legislation approved Sept. 15 by the House Ways and Means Committee.

In a near party-line vote of 24-19, the changes were approved as part of the $3.5 trillion Build Back Better Act reconciliation recommendations that address everything from implementing infrastructure development and green energy incentives, to expanding Medicare, offering paid family and medical leave, and extending Trade Adjustment Assistance. 

….

These revenue-raising retirement proposals are included in Subtitle I, “Responsibly Funding Our Priorities,” along with a host of other individual and corporate tax increases. The Joint Committee on Taxation estimates that these tax changes would raise approximately $2.1 trillion over 10 years to help pay for the fiscal year 2022 budget reconciliation bill. (For a more detailed description of the retirement-based revenue proposals, click here.)

Author(s): Ted Godbout

Publication Date: 16 Sept 2021

Publication Site: American Society of Pension Professionals & Actuaries

Heaping on the SALT

Mary Pat Campbell

Link: https://www.city-journal.org/will-biden-restore-the-state-and-local-tax-deduction

Excerpt:

The Biden administration will need practically every Democratic representative in Congress to vote for its proposed $2 trillion package of tax increases, which would be the largest in 54 years. To gain that support, the president may have to season his legislation with some SALT. The bill, which raises corporate taxes and boosts capital-gains levies, among other things, doesn’t restore the full federal deduction for state and local taxes that Donald Trump’s 2017 tax-cut bill capped.

Democrats in key high-tax blue states, including New York representative Tom Suozzi and New Jersey representative Josh Gottheimer, have been complaining that Trump’s tax bill placed an undue burden on their states’ residents. Some have vowed not to support any tax legislation unless it reinstates the full SALT deduction. The problem: federal data show that restoring the deduction would overwhelmingly profit rich taxpayers—and lawmakers in many blue states have already raised their own levies on the rich.

…..

Subsequent data have shown that the SALT changes fall heavily on the rich, while the vast majority of taxpayers in high-tax states have benefited from the Trump cuts. An analysis of 2018 New York tax returns found that the number of residents subject to the higher rates of the Alternative Minimum Tax declined to just 0.2 percent of all returns, down from 5.9 percent in 2017. Thanks to the doubling of the standard deduction, the number of New Yorkers itemizing their deductions shrank by nearly two-thirds that year, according to an Empire Center report. A recent report by the left-of-center Brookings Institution found that 57 percent of the benefits of restoring a full SALT deduction would go to the top 1 percent of households, providing them with an average tax cut of $33,000.

Author(s): Steven Malanga

Publication Date: 17 Sept 2021

Publication Site: City Journal

Spain inches ahead with pension reform

Mary Pat Campbell

Link: https://www.thelocal.com/20210718/spain-inches-ahead-with-pension-reform/

Excerpt:

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Spain will pay workers to postpone retirement as part of a pensions reform strategy that analysts warn does not go far enough to cut a huge deficit in the system.

With nearly 30 billion euros ($36 billion) of annual losses in 2020 and rising, Spain’s social security budget is one of the biggest contributors to the country’s ballooning public deficit.

The European Commission has long demanded that Spain reform its pension system and has made it a condition for accessing European Union economic recovery funds.

Under a planned reform unveiled earlier this month that aims to get more people to work longer, Spain will give cheques worth up to 12,000 euros ($14,000) per year to retirement-age workers who postpone their retirement.

….

The 2013 reform also gradually increased the legal retirement age to reach 67 in 2027 from around 65 years currently.

….

Jordi Fabregat of the Esade business school said part of the problem is that Spain offers generous public pensions, with monthly payments amounting to 80 percent of a worker’s final salary compared with an average of 55 percent for all of Europe.

Publication Date: 18 July 2021

Publication Site: The Local

Insolvency Cost Information Files

Mary Pat Campbell

Link: https://www.nolhga.com/factsandfigures/InsolvencyCosts.cfm

Excerpt:

File Explanations:

Insolvency Costs Workbook – This Microsoft Excel workbook contains individual spreadsheets for all insolvency cases along with various summary schedules and assessable premium data.

Insolvency Costs Report – This PDF file contains all commentary and notes for the insolvency cost report. It includes general descriptions of categories, brief comments on individual insolvency cases, assessment and premium tax offset provisions, and premiums by state. Also included are the spreadsheets from the Costs Excel workbook, thus creating one comprehensive report. You will need Acrobat Reader to open and read this file.

Insolvency Costs Report – Comments – This file is no longer provided beginning with 2003 since all information is included in the Report PDF file. This Microsoft Word document contains all commentary and notes for the insolvency cost report. It includes general descriptions of categories, brief comments on individual insolvency cases and premium tax offset provisions.

Date Accessed: 20 Sept 2021

Publication Site: National Organization of Life & Health Insurance Guaranty Associations

New Jersey set to shed $182 million Unilever assets over Ben & Jerry’s boycott

Mary Pat Campbell

Link: https://uk.news.yahoo.com/jersey-set-shed-182-million-225836260.html

Excerpt:

A New Jersey state treasury official said on Wednesday it is set to divest $182 million in Unilever Plc stock and bonds held by its pension funds over the restriction of sales by the consumer giant’s Ben & Jerry’s ice cream brand in Israeli-occupied Palestinian territories.

It is the latest action by a U.S. state challenging Unilever over Ben & Jerry’s move in July to end a license for its ice cream to be sold in the Israeli-occupied West Bank. Ben & Jerry’s said selling its products there was “inconsistent with its values.”

New Jersey’s Division of Investment had said on Tuesday it made a preliminary determination that maintaining its investment in Unilever would be a breach of a state law barring it from investing in companies boycotting Israel. It gave the company 90 days to request a modification of the order.

Author(s): Ross Kerber

Publication Date: 15 Sept 2021

Publication Site: Yahoo News

Study: Two in five people in U.S. who died of COVID-19 had diabetes

Mary Pat Campbell

Link: https://www.upi.com/Health_News/2021/07/15/diabetes-high-risk-condition-death/2781626314320/

Excerpt:

As many as two of every five Americans who’ve died from COVID-19 were suffering from diabetes, making the chronic disease one of the highest-risk conditions during the pandemic, an expert says.

About 40% of deaths from COVID-19 in the United States were among diabetics, a “really quite sobering” statistic that should prompt people with the ailment to get vaccinated, said Dr. Robert Gabbay, chief scientific and medical officer for the American Diabetes Association.

…..

That diabetes was implicated in up to 40% of COVID-19 deaths is particularly staggering if you consider only 10% of the U.S. population suffers from the condition.

Author(s): Dennis Thompson

Publication Date: 15 July 2021

Publication Site: UPI

Vote to increase Swiss retirement age clears signature hurdle

Mary Pat Campbell
Vote to increase Swiss retirement age clears signature hurdle

Excerpt:

The youth chapter of the PLR (FDP) has successfully collected enough signatures for an initiative to raise the official retirement age in Switzerland to 66 years old, reported RTS.

On 16 July 2021, initiative organisers submitted 145,000 voter signatures as part of the formal process of launching a referendum in Switzerland. Under referendum rules a minimum of 100,000 valid signatures must be collected within 18 months.

The official retirement age in Switzerland is currently 65 for men and 64 for women, although the government recently passed laws to create a universal retirement age of 65 for both men and women. The federal government also agreed to increase VAT up to 8% to help improve pension system finances.

The perilous state of Switzerland’s state pension system is well known. People are living longer and the nation’s population is ageing, leaving fewer working-age tax payers to fund the pensions of a rising number of retirees. Without reform a funding shortfall of CHF 200 billion is forecast over the next 25 years.

Publication Date: 23 July 2021

Publication Site: Le News

Unions contest pension reform plans with Bern demonstration

Mary Pat Campbell

Link: https://www.swissinfo.ch/eng/unions-contest-pension-reform-plans-with-bern-demonstration/46959184

Excerpt:

Thousands marched in Bern on Saturday against a proposed reforms of the Swiss old-age pension scheme, notably the plan to raise the retirement age for women from 64 to 65.

The demonstration, which was authorised by Bern authorities, was attended by some 15,000 people, according to the trade unions who organised it; the police have not (yet) released estimates.

The protest took place under the slogan “hands off our pensions”, and was clearly aimed at parliamentarians currently discussing an overhaul of the country’s three-pillar system.

A press release by the Trade Union Federation said that the current pension system is “no longer enough to live on” and that politicians should be raising payments rather than trying to cut them; as for making women work a year longer, this is a non-runner, it says, given the years of part-time and unpaid work they do during their active lives.

Publication Date: 18 Sept 2021

Publication Site: Swiss Info

Yellen, IRS Push Democrats to Require Banks to Report Taxpayers’ Annual Account Flows

Mary Pat Campbell

Link: https://www.wsj.com/articles/yellen-irs-push-democrats-to-require-banks-to-report-annual-account-flows-11631727020

Excerpt:

Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig pressed lawmakers Wednesday to give the Internal Revenue Service more information about taxpayers’ bank accounts, as the Biden administration tries to salvage its tax-compliance proposal.

In letters to lawmakers, the administration officials again asked Congress to require banks to report annual inflows and outflows from bank accounts with at least $600 or at least $600 worth of transactions, a proposal aimed at letting the IRS target its audits more effectively. It would generate about $460 billion over a decade to cover the costs of Democrats’ planned expansion of the social safety net and climate-change policies, according to the administration.

But after a flurry of opposition from banks and credit unions, House Democrats omitted the proposal from their list of tax-policy changes this week. That was a sign that it lacked the support in the party to advance, though a scaled-back version raising about half as much money could still emerge from ongoing talks between administration officials and Congress.

Author(s): Richard Rubin and Orla McCaffrey

Publication Date: 15 Sept 2021

Publication Site: Wall Street Journal

As Comptroller, Lander Would Use ‘Environmental, Social and Governance’ Factors to Inform Pension Investment

Mary Pat Campbell

Link: https://www.gothamgazette.com/city/10773-comptroller-lander-environmental-social-governance-esg-pension-investment?mc_cid=234d7207fb&mc_eid=1a5d3a1f3d

Excerpt:

The New York City Comptroller is an investment advisor and fiduciary for New York City’s $266 billion public pension system that serves 700,000 current and former teachers, firefighters, health care workers, police officers, and other retired city employees.

Brad Lander, the Democratic nominee for Comptroller, is all but certain to win the general election this fall in the overwhelmingly Democratic city after prevailing in a competitive primary earlier this year. If successful, Lander would be inaugurated in January and soon be able to make recommendations to the Boards of Trustees of the city’s five public pension funds on how their many billions should be invested, while also voting directly on four of the five pension boards, making him the key figure in almost all investment decisions.

The implications are significant given that city workers’ pensions are on the line, and because the city guarantees those pensions, billions are spent each year to make up for what the pensions themselves don’t produce in returns. Better returns from pension fund investments can save city government a significant amount of money that could be used for other priorities or put aside for a crisis.

Those investment decisions can also be made to further other goals than simply the funds’ bottom lines, though the returns and overall financial health of the pension funds are the comptroller’s main city charter-mandated responsibility.

Author(s): Carmen Vintro

Publication Date: 17 Sept 2021

Publication Site: Gotham Gazette

Mortality with Meep – Excess Deaths through September 2021 – Winter is Coming

Mary Pat Campbell

Video description:

A look at the pattern of weekly deaths, all causes, for the entire United States through the beginning of September 2021, as well as: California Texas New York (minus NYC) New York City Pennsylvania Illinois CDC excess mortality dashboard: https://www.cdc.gov/nchs/nvss/vsrr/co…

Publication Date: 17 Sept 2021

Author: Mary Pat Campbell

Publication Site: Meep’s Math Matters at Youtube

September 19-25, 1921

Mary Pat Campbell

Link: https://roaring20s.substack.com/p/september-19-1921

Graphic:

Excerpt:

The Federal Reserve of New York lowers rates from 5.5% to 5% on September 21. The rest of the Fed branches match in tandem. The powerful New York Federal Reserve President (Governor pre-1935), Benjamin Strong, delivers a terse statement to the Journal. Equities seem nonplussed and drop the next day. The aggregate yield on high quality debt rallies from 4.8% to 4.5%.

Author(s): Tate

Publication Date: 19 Sept 2021

Publication Site: Roaring 20s at substack