Head of Iceland’s Largest Pension Fund Resigns

Haukur Hafsteinsson

Haukur Hafsteinsson, the managing director of Iceland’s largest pension, the Government Employees Pension Fund, or Lífeyrissjóðs starfsmanna ríkisins (LSR), has resigned and will leave the organization in early summer, the fund said.

“I will be 65 in the fall of the coming season and just think that now is the right time for change,” Hafsteinsson said in a statement.

Hafsteinsson announced his resignation at a staff meeting, but had previously informed the fund’s board of directors of his decision. Unnur Petursdottir, chairman of the fund’s board, said that Hafsteinsson’s decision was a surprise.

“For years, Haukur has been the driving force, the center of gravity and the face of the Pension Fund of State Employees,” Petursdottir said in a release. “He is one of the most experimental leaders in the pension system in Iceland. He leaves a gap waiting for the fund’s board to fill. Obviously, it will not be easy.”

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Neither a replacement for Hafsteinsson, nor a search for one has been announced.

As of the end of 2017, which is the latest available information, the fund had total assets of 821.7 billion Icelandic Krona, or just under $7 billion at current exchange rates, and served 31,029 active members, and 22,266 members receiving pensions and other benefits.

Hafsteinsson has been with LSR since 1985.

CalPERS No. 2 Investment Officer Resigns

Tags: Government Employees Pension Fund, Haukur Hafsteinsson, Iceland, Pension

Brazil’s pension reform is likely to be passed in the first half of 2019, its president says, although perhaps a smaller version than he envisions.

Jair Bolsonaro told local media Wednesday that his proposal, submitted to the nation’s Congress late last month, will pass because lawmakers understand the importance of the matter. The question is how much of a change the lawmakers will accept.

Pension reform is one of Brazil’s top priorities to turn around its struggling economy. The president’s proposal aims to increase the minimum retirement ages for both men and women, extend the length that workers contribute to the social security system, and cut benefits for rural employees and military personnel. Bolsonaro projects this to generate more than 1 trillion real ($262.5 billion) in savings over the next decade.

Congress, however, may have other plans. Analysts have recently suggested lawmakers could introduce changes that would slash savings by more than half, to 500 billion real, a notion that drew the ire of Economy Minister Paulo Guedes.

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“But if Congress dilutes that to only 500 [billion], you end up condemning your children and grandchildren, there’s no individual retirement funds, and the old system stays in place,” Guedes said at a Wednesday ceremony commemorating the swearing-in of Roberto Campos Neto as the new president of Brazil’s central bank.

Rogerio Marinho, secretary of social security and labor at the Economy Ministry, told Reuters that Brazil’s parliament would discuss the bill and “make modifications, even improvements.” He said a May vote is possible.

“In terms of timing, we are able to meet our deadlines. Everything will depend on the dynamics of the debating process in parliament,” he told Reuters. “We know pension reform is not an easy process. But we’re very happy to have that debate.”

The bill must pass in both houses of Congress to become law.

Bolsonaro will head to the US next week for a private meeting with President Donald Trump during which they will discuss ongoing issues in Venezuela.

Tags: Brazil, Jair Bolsonaro, Paulo Guedes, Pension Reform