European Forum – Family Mediation Sat, 12 Jun 2021 01:19:35 +0000 en-US hourly 1 European Forum – Family Mediation 32 32 Shares of PETRONAS Chemicals Berhad (KLSE: PCHEM) are down: are bad fundamentals the cause? Sat, 12 Jun 2021 00:32:41 +0000

It’s hard to get excited after looking at the recent performance of PETRONAS Chemicals Group Berhad (KLSE: PCHEM), as its stock has fallen 2.3% in the past three months. Since stock prices are usually determined by a company’s long-term fundamentals, which in this case seem quite weak, we decided to study the key financial metrics of the company. In this article, we have decided to focus on the ROE of PETRONAS Chemicals Group Berhad.

ROE or return on equity is a useful tool to assess how effectively a company can generate the returns on investment it has received from its shareholders. In other words, it is a profitability ratio that measures the rate of return on capital contributed by the shareholders of the company.

View our latest review for PETRONAS Chemicals Group Berhad

How is the ROE calculated?

the formula for ROE is:

Return on equity = Net income (from continuing operations) ÷ Equity

Thus, based on the above formula, the ROE of PETRONAS Chemicals Group Berhad is:

7.9% = RM2.6b ÷ RM32b (Based on the last twelve months up to March 2021).

The “return” is the amount earned after tax over the past twelve months. Another way to think about this is that for every MYR 1 worth of equity, the company was able to make MYR 0.08 in profit.

What is the relationship between ROE and profit growth?

So far we’ve learned that ROE is a measure of a company’s profitability. We now need to assess how much profit the business is reinvesting or “holding back” for future growth, which then gives us an idea of ​​the growth potential of the business. Generally speaking, all other things being equal, companies with high return on equity and high profit retention have a higher growth rate than companies that do not share these attributes.

A side-by-side comparison of profit growth and 7.9% ROE of PETRONAS Chemicals Group Berhad

At first glance, the ROE of PETRONAS Chemicals Group Berhad does not look so attractive. However, given that the company’s ROE is similar to the industry average ROE of 7.0%, we can think about it. That said, PETRONAS Chemicals Group Berhad’s five-year net profit decline rate was 7.0%. Remember that the company’s ROE is a bit low to begin with. Therefore, this partly explains the drop in income.

Moreover, even compared to the industry, which reduced its profits by 1.2% during the same period, we found that the performance of PETRONAS Chemicals Group Berhad is quite disappointing, as it suggests that the company has is reducing its profits at a faster rate than the industry.

KLSE: PCHEM Growth in past profits on June 12, 2021

Profit growth is an important metric to consider when valuing a stock. What investors next need to determine is whether the expected earnings growth, or lack thereof, is already built into the share price. By doing this, they will have an idea if the stock is heading for clear blue waters or if swampy waters are ahead of them. What is PCHEM worth today? The intrinsic value infographic in our free research report helps to visualize whether PCHEM is currently poorly valued by the market.

PETRONAS Chemicals Group Is Berhad Efficiently Reinvesting Its Profits?

The decline in profits for PETRONAS Chemicals Group Berhad is not surprising given that the company spends most of its profits on paying dividends, judging by its three-year median payout rate of 57% (or a 43% retention). With very little to reinvest in the business, earnings growth is far from likely.

Additionally, PETRONAS Chemicals Group Berhad has been paying dividends for at least ten years or more, suggesting that management must have perceived that shareholders prefer dividends over earnings growth. Our latest analyst data shows that the company’s future payout ratio over the next three years is expected to be around 53%. Still, forecasts suggest that PETRONAS Chemicals Group Berhad’s future ROE will reach 12%, although the company’s payout ratio is not expected to change much.


Overall, we would be extremely careful before making a decision on PETRONAS Chemicals Group Berhad. Due to its low ROE and lack of reinvestment in the business, the company recorded a disappointing rate of profit growth. However, the latest forecast from industry analysts shows that analysts expect a significant improvement in the company’s earnings growth rate. To learn more about the latest analyst forecast for the business, check out this visualization of the analyst forecast for the business.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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Bank of America launches card payment Fri, 11 Jun 2021 22:15:29 +0000

In today’s top digital banking news, Bank of America is expanding its business-to-consumer (B2C) payment offerings, while State Street’s exchange-traded fund business examines how it can leverage growing consumer demand for digital tokens like bitcoin. In addition, the China Banking and Insurance Regulatory Commission (CBIRC) has introduced new rules on wealth management products for cash.

Bank Of America Launches Pay To Card To Advance B2C Payments

Bank of America is developing its B2C digital payment offers with its Pay to Card service. “As the payments industry continues to evolve, we are constantly investing and bringing to market new solutions and services that can help customers become more efficient and relevant to a growing set of stakeholders.” , Bank of America, head of global payments at Global Transaction Services, David Kretz said in an announcement. The executive said this new addition to the bank’s B2C payments suite offers a new opportunity and convenience, while also being flexible.

State Street Mulls Crypto Exchange-Trading Funds

State Street’s exchange-traded fund business reflects on how it can tap growing consumer demand for digital tokens like bitcoin, as entities like 21Shares and ETC Group roll out or plan to roll out traded products on the bitcoin exchange (ETP). 21Shares announced in June that it will deploy its bitcoin ETP to Aquis this summer, while ETC Group recently launched its first bitcoin ETP in Britain. The news comes as State Street has launched its new State Street Digital arm, which will build on the company’s current digital capabilities. State Street is present in more than 100 geographic markets around the world.

China promulgates new rules for $ 1 trillion cash management market

The China Banking and Insurance Regulatory Commission (CBIRC) has put in place new regulations on wealth management products for cash, a move that imposes tighter controls on the trillion dollar market. The commission banned those offers from investing in convertible bonds in addition to stocks, according to a published report, and said the leverage level of each offer should generally not be more than 120%.



About the study: The AI ​​In Focus: The Bank Technology Roadmap is a research and interview report examining how banks are using artificial intelligence and other advanced IT systems to improve credit risk management and other aspects of their operations. The Playbook is based on a survey of 100 banking executives and is part of a larger series assessing the potential of AI in finance, healthcare and others.

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Plan sponsors can do better to improve retirement outcomes – report Fri, 11 Jun 2021 19:36:05 +0000

Vanguard Group has issued a series of recommendations to defined contribution sponsors on improving participant outcomes beyond increasing enrollments and account balances.

The recommendations, released Friday, are based on Vanguard’s latest annual report, “How America Saves,” which tracks the results of plan participants kept on records in 2020, as well as other Vanguard research. The recommendations are contained in the “Insights To Action” report, a supplement to “How America Saves”.

Some sponsors have used some or all of the suggestions, but Vanguard’s Insights report indicates that there is room for improvement for sponsors who have not chosen – or only partially implemented – these practices.

For example, Vanguard advocates automatic enrollment supplemented by automatic annual increases and a default rate of 6%, or at least a rate that matches company correspondence.

The company noted that its historical plans had a participation rate of 92% in 2020, if they offered automatic subscription against a rate of 62% for plans offering voluntary subscription in 2015. The employee savings rate was of 10.7% for the first against 6.8. % for the last.

The Vanguard report states that 57% of plans had an initial default rate of 4% or more of salary last year compared to 43% of plans in 2015.

For sponsors concerned that attendees opt out of auto-enrollment if the default rate is too high, the report says the opt-out rate for a 6% default is the same as for a 3% default . “Increasing the default should not raise concerns that turnout will decrease,” the report said.

“Getting pension plan members to save more remains a priority, but plan sponsors are increasingly focusing on ensuring plan members have the tools they need to help them spend wisely in retirement,” the report says. .

That’s why Vanguard recommends that the plans allow flexible payments and withdrawals for retirees, provide modeling and spending tools, and offer “an advisory option that includes solutions regarding retirement income.”

Vanguard encourages plan members to keep their money in employer plans after retirement. “Participants can be well served by staying in their employer’s pension plan until retirement,” the report says. “Participants benefit from fiduciary oversight. The rigor that plan sponsors adopt with the best interests of their members in mind provides some assurance that their investment choices match the level of risk investors are willing to take.

Additionally, retirees who keep their money in employer plans benefit from institutional pricing instead of retail pricing in individual retirement accounts.

“The price difference can be significant, sometimes 50 basis points or more,” the report says. “The higher fees can reduce the capital and income stream of retirement participants.”

Recognizing that attendees may face financial emergencies, Vanguard nonetheless recommended several strategies for sponsors to avoid significant leaks.

Sponsors should limit participants to one outstanding loan at a time; set minimum limits for withdrawals in the event of difficulty; and to restrict the frequency of withdrawals to twice a year, according to the report, Vanguard also recommended establishing a 30-day to 6-month “withdrawal” period between loan repayment and taking out a new loan.

Vanguard’s latest “How America Saves” report covers 1,700 qualified plans managed by 1,400 clients and 4.7 million participants. About 90% of these plans have a 401 (k) or 403 (b) employee contribution feature; the others are employer contribution plans, such as incentive or share buyback plans.

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As California eviction moratorium nears expiration, tenants seek relief Fri, 11 Jun 2021 06:28:06 +0000

OAKLAND (KPIX) – The statewide moratorium on evictions is set to expire in 20 days, putting more than one million Californians at risk of losing their homes.


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Tenant rights groups want the state to extend AB 91, the law that aimed to pay off 80% of unpaid pandemic rents with federal and state funds. Tenants say the money is not in good hands.

“We all experience the same thing – sleepless nights, getting these notices at the door,” said Vanessa Bulnes, an Oakland tenant.

Bulnes’ landlord has already threatened to kick her out once after she lost her job and couldn’t pay rent in March this year. Since then, she has asked for state rent relief but has not seen a dime.

“It’s like waiting for the rain, it’s not coming, there is no rain, no funding and I applied on March 24,” Bulnes said.

Tenants like Bulnes are protected from eviction, but in 20 days the statewide moratorium is lifted.

“There is rent assistance. We just have to make sure it gets to where it’s supposed to go, ”said ACCE lawyer Jackie Zaneri.

Zaneri says securing tenant rent relief has been a bureaucratic mess coupled with serious equity issues. Some tenants she works with don’t even have a computer and many don’t speak English.

“While tenants wait, the protections meant to protect them start to expire,” Zaneri said.

According to the National Equity Atlas, California’s estimated rental debt is $ 4.2 billion. 911,000 households are behind in rent. Seventy-eight percent of indebted tenants are low-income and 76 percent are people of color.

“You should be allowed to go to court for redress. It’s what governs our civilization, ”said Sid Lakireddy, president of the California Rental Housing Association.

Lakireddy said he was prepared to wait for tenants to prove they asked for help, but knew of other tenants who had not asked for help, refused to pay and abused the moratorium. He says that at some point the housing sector must also be able to reopen.

“No other industry has been asked to carry the burden that has been asked of us and to keep asking us to do it after we’ve done it for so long, I think, is wrong,” Lakireddy said.

Read on

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Wintrust Business Lunch 6/10/21: Weekly jobless claims are falling again and what rising inflation means for your retirement savings | WGN 720 radio Thu, 10 Jun 2021 22:05:26 +0000


CHICAGO, ILLINOIS – JUNE 10: A customer purchases meat at a supermarket on June 10, 2021 in Chicago, Illinois. Inflation rose 5% in the 12-month period ending in May, the biggest jump since August 2008. Food prices rose 2.2% for the same period. (Photo by Scott Olson / Getty Images)

Segment 1: Best-selling financial author Jared Dillian joins John to talk about soaring consumer prices, rising inflation, and why rising inflation could impact your business. pension saving.

Segment 2: CNET Publisher in general Ian sherr chats with John about a variety of tech stories, including Apple hoping iOS 15 can tame the deluge of app notifications, President Biden revoking former President Trump’s executive orders against TikTok and CEO WeChat of Colonial Pipeline telling the Senate that the decision to pay the pirates was made quickly and the United States seizing most of the ransom from the Colonial Pipeline.

Segment 3: Ted rossmanSenior Industry Analyst joins John in discussing a new survey showing 4 in 10 American adults are willing to take on indulgences for indulgences exiting the pandemic.

Segment 4: WGN reporter and Crain’s Daily Gist host Amy guth gives us a look at the latest business stories, including how the new Amazon Sidewalk feature could help boost neighbors’ Wi-Fi, unless you specifically turn it off.

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Bondholders plan to waive temporary financial covenant Thu, 10 Jun 2021 19:10:00 +0000

AS Pro Kapital Grupp (the “Company”) Published an interim report of 1st quarter of 2021, during which it entered into receivables from its subsidiary AS Tallinna Moekombinaat (“TMK”) Following the bankruptcy proceedings of TMK. The Company is therefore in a temporary breach of its financial covenants (the “”Failure of the alliance“” In the context of its senior fixed rate redeemable and redeemable bonds 2020/2024 with ISIN SE0013801172 (theObligations“).

The decision of the Estonian Supreme Court of April 26, 2021 resulted in the closure of the reorganization proceedings of TMK and the opening of bankruptcy proceedings concerning TMK. As a result, a retroactive write-off of the receivables of TMK’s direct parent company, AS Pro Kapital Eesti, in TMK as of December 31, 2020 has taken place, which has led the Company to a situation where it has violated its special commitment. under the terms and conditions of the Bonds (the “Terms and conditions”) Since December 31, 2020. According to the General Conditions, the Company must at all times satisfy a Maintenance Test, namely that the ratio of equity to total assets must be 35% for the group without the indicators. TMK financials. As a result of an adjustment event and a related write-off, the ratio of equity to total assets fell from 50% to 32% as at December 31, 2020. However, failure to comply with the commitment is considered temporary and the Company, according to its estimates, will reach the required levels in the second half of 2021. The Company has entered into negotiations with the bondholders.

The Company today received a standstill letter from a majority of bondholders representing 75.44% of the total nominal amount of the Bonds (the “Major Bondholders”), Stipulating that the Principal Bondholders must:

  • waive any right to take action against the Company for the breach of commitment and / or any other potential breach of the Company’s obligations under the General Conditions due to bankruptcy and / or the delisting event; and
  • agree with the Company on a standstill period which runs until August 31, 2021 at the earliest, the date on which the waiver is approved by the bondholders in a written procedure (the “Written Procedure“) held in accordance with the General Conditions or on the expiry date of the standstill period due to the breach by the Company of the conditions described below (the”Stop Period“), it being understood that the derogation to be given in the written procedure is valid until 31 December 2021.

The Principal Bondholders undertake and undertake during the Standstill Period to:

  • not to ask the Agent (Nordic Trustee & Agency AB (publ)) or vote in favor in any Written Procedure of any proposal, to expedite the Obligations and / or to enforce the security of the transaction under the Terms and Conditions or security documents, as the case may be, due to any potential Event of Default under the Terms and Conditions or any circumstance that could result in an Event of Default under the Terms and Conditions and / or take any other action against the Company, due to bankruptcy and write-off an event;
  • participate and vote in favor of the waiver request in the written procedure; and
  • not assign the Bonds that each of them represents unless the seller of any one of the Bonds ensures that the buyer of these Bonds adheres to the commitments of the standstill letter.

The obligations of the members of the principal bondholders under the standstill letter are separate and not joint.

The above agreements and commitments are subject to the following conditions:

  • the Company acknowledges and accepts the letter of suspension in writing on the date hereof;
  • the Company initiates the Written Procedure relating to the waiver request no later than July 10, 2021 and the notice of such Written Procedure also includes Additional Interest; and
  • the publication of this press release.

If any of the conditions set out above is not met / is violated, and this non-compliance and / or violation has not been corrected within two (2) working days from the time the Agent or Major Bondholders have notified the Company such non-compliance and / or violation of the Standstill Period will automatically and immediately expire.

Subject to the waiver request being approved by the required majority (i.e. 2/3 of the votes) of the bondholders, the Interest payable to bondholders in respect of the Bonds will be increased by one hundred (100.00) basis points per year during the period. beginning on January 1, 2021 and ending when the non-fulfillment of the commitment has been corrected in accordance with (i) a certificate of compliance duly issued by the Company in accordance with the general conditions and (ii) a certificate issued by an auditor ( the “Additional Interest“). The portion of the Additional Interest attributable to the Interest Period ending on the last Interest Payment Date (i.e. February 20, 2021), will be paid on the next applicable Interest Payment Date (i.e. i.e. August 20, 2021).

The Standstill Period may be extended and the standstill letter may be amended if the principal Bondholders and the Company agree in writing.

The Company has accepted the conditions described above and will initiate a written process to have the formal vote in favor of a waiver taken as soon as possible.

Allan Remmelkoor
Member of the Management Board
+372 614 4920

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Welcome to the city of tomorrow Thu, 10 Jun 2021 14:15:00 +0000

The Future of Everything covers the innovation and technology that is transforming the way we live, work and play, with monthly issues on health, money, artificial intelligence and more. This month, Cities & Real Estate, online from June 4 and in the newspaper on June 11. We examine the impact of suburbs built for rental on the nature of homeownership. What’s more, scientists are turning to tree planting and the whitest white paint to tackle urban climate change. In addition, the parking lot is getting a makeover. See below for more.


Doug john miller

10 great ideas to improve life in small and medium cities

American municipalities have always been testing laboratories for innovation. As the pandemic begins to ebb in the United States, we are looking at a handful of programs that supporters say will spread across the country.


Jon krause

Suburbs Built To Rent Are About To Spread Across The United States

Economic forces and generational preferences are driving a new type of housing: housing estates designed for tenants and managed like apartment buildings. What does this mean for the suburbs?


Lucy Hewett for The Wall Street Journal

To offset climate change, scientists tout city trees and ultra-white paint

More trees and more reflective surfaces won’t stop global warming, but they could help alleviate dangerous “heat islands” in urban areas.



No parking: cities rethink garages for a world with fewer personal cars

Public parking may never go away, but autonomous vehicles, remote working, and generational trends are making city planners reconsider its function in the city center.


Insurance Institute for Business and Home Security

As the threat of forest fires increases, communities at risk consider new defenses

Building materials, architectural details, landscaping choices, and even road design will improve fire safety in the West and other parts of the country.


Adam Amengual for the Wall Street Journal

Mental health moves downtown

Several new or planned mental health hospitals in downtown areas aim to do more than treat patients – boost local businesses, provide work for people in treatment, and use design to erode stigma.


John S. Dykes

Jobs for the city of tomorrow

As urban areas expand and evolve, new professions will be needed, from vertical gardeners to charging station valets.

Get the future of everything in your inbox. Sign up here for the weekly newsletter.

Copyright © 2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Bank of England launches climate change stress test Thu, 10 Jun 2021 11:11:57 +0000

The Bank of England has put in place a new stress test linked to the ability of the UK financial system to cope with climate change.

The test will examine the resilience of the nation’s 19 largest banks and insurers, including HSBC, Barclays and the London Lloyd’s insurance market, to the pressures of a shift to a net zero carbon economy in the coming decades as well as to the impact of extreme weather conditions. .

England’s central bank has said the results of the climate change stress test will not be used to determine capital requirements – for now. Due to the experimental nature of the test, only aggregate results, rather than company by company, are expected to be released in May 2022.

The test is based on three scenarios spanning 30 years: early action by governments around the world to reduce carbon emissions, late action, and no further action.

Each scenario will be applied to two main risks: physical such as fires and flooding due to temperature changes, and risks of transitioning to a more climate-friendly business that could lead to sudden changes in asset values ​​and the price of the product. carbon.

For banks, the test will focus on the credit risk associated with their banking book, with an emphasis on detailed risk analysis for large companies. For insurers, it will focus on changes in invested assets and insurance liabilities, including accepted reinsurance.

The scoping exercise will not be used by the Bank of England to set capital requirements, but will shape how regulators do their job and help financial firms better model their response to climate risks.

The Banque de France conducted the world’s first climate stress test, saying in May this year that French banks should step up their response to climate change.

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Does the impressive stock performance of Ponsse Oyj (HEL: PON1V) have something to do with its fundamentals? Thu, 10 Jun 2021 04:06:42 +0000

The share of Ponsse Oyj (HEL: PON1V) has risen significantly by 22% in the past three months. As most know, fundamentals usually guide long-term market price movements, so we decided to look at the company’s key financial metrics today to determine if they have a role to play in the market. recent price movement. In this article, we have decided to focus on Ponsse Oyj’s ROE.

Return on equity or ROE is an important factor for a shareholder to consider because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess a company’s profitability against its equity.

Check out our latest analysis for Ponsse Oyj

How is the ROE calculated?

Return on equity can be calculated using the formula:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, Ponsse Oyj’s ROE is:

17% = 44 million euros 266,266 million euros (based on the last twelve months up to March 2021).

The “return” is the profit of the last twelve months. One way to conceptualize this is that for every € 1 of share capital it has, the company has made € 0.17 in profit.

What does ROE have to do with profit growth?

We have already established that ROE is an effective indicator of profit generation for a company’s future profits. Based on the portion of its profits that the company chooses to reinvest or “keep”, we are then able to assess a company’s future ability to generate profits. Generally speaking, all other things being equal, companies with high return on equity and high profit retention have a higher growth rate than companies that do not share these attributes.

Ponsse Oyj profit growth and 17% ROE

At first glance, Ponsse Oyj appears to have a decent ROE. Additionally, the company’s ROE compares quite favorably to the industry average of 11%. Needless to say, we are quite surprised to see that Ponsse Oyj’s bottom line has declined 3.9% over the past five years. Therefore, there could be other aspects that could explain this. For example, the company may have a high payout ratio or the company may have misallocated capital, for example.

Next, comparing with the growth in net income of the industry, we found that Ponsse Oyj’s revenue appears to be declining at a rate similar to that of the industry which has declined at a rate of 3.7% over the course of the same period.

HLSE: PON1V Past profit growth on June 10, 2021

Profit growth is a huge factor in the valuation of stocks. The investor should try to establish whether the expected growth or decline in earnings, as the case may be, is taken into account. In doing so, he’ll have an idea if the action is heading for clear blue waters or swampy waters ahead. Is Ponsse Oyj just valued over other companies? These 3 evaluation measures could help you decide.

Is Ponsse Oyj using its profits effectively?

Despite a normal three-year median payout ratio of 45% (where he keeps 55% of his profits), Ponsse Oyj has seen his profits decline as we saw above. It seems that there could be other reasons for the lack in this regard. For example, the business could be in decline.

In addition, Ponsse Oyj has paid dividends over a period of at least ten years, which means that the management of the company is committed to paying dividends even if it means little to no growth in earnings. Based on the latest analyst estimates, we found that the company’s future payout ratio over the next three years is expected to hold steady at 41%. Therefore, the company’s future ROE is also unlikely to change much, with analysts predicting an ROE of 20%.


Overall, we think Ponsse Oyj certainly has some positive factors to consider. However, given the high ROE and high profit retention, we would expect the company to show strong profit growth, but this is not the case here. This suggests that there could be an external threat to the business, hampering its growth. However, the latest forecast from industry analysts shows that analysts expect a significant improvement in the company’s earnings growth rate. To learn more about the company’s future earnings growth forecast, take a look at this free analyst forecast report for the company to learn more.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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Illinois Retirement Savings Program Expanded | The Weekly of Time Thu, 10 Jun 2021 03:37:34 +0000

A proposal to extend coverage of the Illinois Secure Choice retirement savings program to businesses with five or more employees is being submitted to the governor for consideration after receiving bipartisan support in the General Assembly.

Lowering the existing threshold to five employees from 25 in the Secure Choice Savings Program Act was the top priority of this year’s legislative program for Illinois State Treasurer Michael Frerichs.

“This common sense change to existing law helps workers save their own money for retirement while reducing future pressures on state safety net programs,” Frerichs said. “Everyone should have the right to retire with dignity, and with Secure Choice, we’re making that possible. “

The House passed HB 117 with a vote of 106-02. The Senate adopted Bill 42-15. Representative Will Guzzardi and Senator Robert Martwick were the main sponsors of HB 117.

“I am proud to see HB 117 pass the Senate,” Guzzardi said. “It’s time for us to tackle the retirement savings crisis in Illinois and the expansion of Secure Choice will ensure more people have the resources they need to retire in comfort and safety. dignity. “

“Everyone should be saving for retirement, but far too many are not,” Martwick said. “Secure Choice guarantees everyone the opportunity to save so that they can live in retirement with dignity. I am proud to have sponsored this legislation and I commend Treasurer Frerichs for his dedication to retirement security in Illinois. “

Secure Choice was launched in 2018 to address the retirement savings crisis our country is facing. The program requires companies to provide a private sector pension plan for their workers or to enroll in Secure Choice, a state-administered program that provides workers with their own Roth-IRA. Participants are automatically enrolled in age-based target date funds with a default contribution rate of five percent. Participants can change their contribution level or funding option, or opt out of the program altogether, at any time.

Secure Choice is overseen by a seven-person board with Treasurer Frerichs as chairman, and is managed by Ascensus, the largest independent record keeper and savings facilitator in the United States. The accounts are portable, which means they can travel with workers if they change jobs. Employers pay nothing to participate and are prohibited from contributing to the accounts. It is important to note that investments are held in a separate trust from the state government and cannot be wiped out.

Today, more than 88,000 workers in 102 counties in more than 6,000 companies have saved more than $ 61 million thanks to Secure Choice.

“AARP Illinois has worked hard to support Secure Choice because we know that helping people aged 50 and over improve their quality of life as they age doesn’t just mean helping people who are on the verge of death. retire or are currently retired – that means taking care of them. career stages that will be retiring in the future, ”said Director of State Bob Gallo. “On behalf of our 1.7 million members, we applaud Illinois lawmakers who have taken action to ensure every worker has a chance to put aside the money they need to take control of his future. “

The urgent need for employment-based retirement savings is clear:

• 15x – Workers are 15 times more likely to save if they have access to a payroll deduction plan at work.

• 40 percent – More than 40 percent of all businesses do not offer a pension plan.

• 90 percent – One-third of Illinois retirees depend on Social Security for 90 percent of their retirement income.

• $ 19,000 – The average annual Social Security benefit in Illinois is $ 19,000.

• $ 5,000 – The median retirement savings for all working-age households is $ 5,000.

• 57 million – Almost 57 million Americans do not have access to a retirement savings plan at work.

Without adequate savings, far too many workers risk falling into poverty and depending on social protection programs. Ensuring workers have an easy and straightforward way to save for retirement increases the likelihood that they can build up a nest egg to ensure their independence and peace of mind during their golden years.

The bill makes additional changes, in particular by authorizing automatic increases in contributions under the savings option by default (automatic indexation) and by relaxing the implementing provisions already enshrined in the law by offering a deadline additional for compliance and the ability for employers to have the penalties waived.

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