April 29, 2019 Minimum Wage, Press Release Harrisburg, PA – Governor Tom Wolf today highlighted research finding 89 percent of the workers benefiting from a $15 per hour minimum wage are adults and more than 18 percent are age 55 and older.“The overwhelming majority of workers who benefit from finally raising Pennsylvania’s minimum wage are adults, particularly working women,” said Gov. Wolf. “All hardworking people, no matter their age, deserve a fair living wage. It’s time to stop the false myth that adults aren’t working in low-wage jobs. It’s a harmful stereotype that disrespects the nearly 2 million Pennsylvania workers who would get a boost in pay from a $15 minimum wage.”The research refutes harmful stereotypes by making clear that hundreds of thousands of adults are stuck making poverty wages. Further, it throws caution at harmful assumptions about low-wage workers. By alleging that low-wage workers are mostly teenagers, opponents of raising the minimum wage distort the facts and malign hardworking teenagers. The reality is that many teenagers are helping support their families and themselves, including by saving for college and training after high school. All low-wage workers, no matter their age, would benefit from a minimum wage increase and deserve to be paid a living wage.Key findings from the Keystone Research Center show the workers who would benefit from a $15 minimum wage:• 89 percent are age 20 or older (1.8 million);• 37 percent are age 40 or older (754,000 workers);• 18 percent are age 55 or older (374,000 workers);• 23 percent work full-time (1.1 million workers).“Pennsylvania is lagging behind other states, including all our neighbors, in ensuring fair wages,” Gov. Wolf said. “When jobs don’t pay enough, workers can’t afford the basics – like food or housing. That hurts families, businesses and communities. Raising the wage floor rewards hard work, boosts local economies and saves tax dollars by helping people to work their way off of government programs.”Gov. Wolf is proposing to raise the wage to $12 per hour on July 1 and $15 per hour by 2025, which is supported by 38 economists. As nearly 2 million workers earn more, they increase spending at local businesses, helping the local economy. Within two years, 70,000 adults will work their way off Medicaid, saving taxpayers over $150 million.“It’s time to act to ensure working Pennsylvanians stop falling behind,” said Gov. Wolf. “The legislature must raise Pennsylvania’s minimum wage.”The commonwealth’s outdated minimum wage is $7.25, the lowest allowed by federal law. By trailing our neighbors, Pennsylvania workers earn less for the same work than those in West Virginia, Ohio, Maryland and all surrounding states. Vast Majority of Low-Wage Workers in Pennsylvania Are Adults SHARE Email Facebook Twitter
The fund said this strategy had been a large component in the outperformance for 2013.Another factor was the emphasis on active management.The fund outperformed the benchmark index by 0.5 percentage points before expenses, although last year the outperformance had been 1%.AP4 has now outperformed its benchmark index for a tenth consecutive six-month interim period, which means it has delivered a better return than passive management.The return for 2013 takes the annual nominal total return after expenses over the past 10 years to 7.2%, or 5.9% adjusted for inflation.This comfortably overshoots the board’s real return requirement of 4.5% on average, and has also outperformed the income index.Meanwhile, management expenses remain low, with a total expense ratio of 0.11%, slightly above last year’s 0.10%.Foreign exchange exposure has slightly increased over last year, reaching 28.6% as at 31 December 2013. Fjärde AP-fondens, the Fourth Swedish National Pension Fund (AP4), has announced record earnings of more than SEK37bn (€4.1bn) for calendar year 2013, a total return of 16.4% after expenses.This compares with a total return of 11.2% for 2012.The fund is now worth SEK260bn.AP4’s brief is the achieve the best possible return over time, and its board considers this is best approached by holding a large proportion of publicly quoted equities, both Swedish and non-Swedish.
Danish statutory pension fund ATP is shortening the length of its return guarantees on pension contributions to 15 years from the lifelong guaranteed returns it pays now, to increase its investment flexibility and therefore the potential pensions it pays out. The pension fund, which manages the labour-market supplementary pension – first-pillar provision that runs alongside the basic state pension – said its supervisory board decided the guaranteed return on contributions would now be set for 15 years at a time, starting January 2015. ATP’s chief executive Carsten Stendevad said: “The purpose of the current adjustment is to better safeguard the purchasing power of pensions, while taking the lower liquidity in the financial markets into account.”While current guarantees set a return for as long as 80 years, under the new system, each year’s contribution will be guaranteed a certain return for 15 years, based on prevailing interest rates. When this 15-year period comes to an end, that year’s contribution will be guaranteed a return for another 15 years, again set at the latest market interest rate, and so on until retirement.ATP said this meant that, from the scheme member’s point of view, the guarantee will only increase, and never decrease.This is because the initial 15-year guarantee assumes a zero rate of return following that 15-year period, whereas in reality that portion of the pension will then grow at the rate set under a subsequent guarantee. Under this new method, ATP members technically have a very low level of guaranteed lifelong pension income at the beginning, but are given a prognosis of the amount their eventual pension is expected to be as a result of subsequent 15-year return guarantees. By promising scheme members a rate of return on their contributions that is only fixed for 15 years at a time, ATP reasons it will be able to get higher returns with lower costs because it will have a wider variety of financial instruments to choose from to hedge those promises than is the case now.This is because liquidity at the long-end of the yield curve is much lower than it is around the 15-year mark. “Giving a guarantee for 80 years forces us to the longest end of the curve where liquidity has been falling,” Stendevad said.“Here, it gets us to the point of the curve where it’s more liquid.”Apart from this, interest-rate derivatives – used for hedging – have become more expensive at longer maturities of 40 years, for example, and are expected to become still more costly in the future, according to ATP.Stendevad said the most important aspect of the change was that it helped scheme members because it was more reflective of the actual level of interest rates over the years, while for ATP as an investor, the move provided more investment flexibility.Ultimately, ATP took the step to decrease the interest-rate sensitivity for young members, he said.At the moment, 20-year-old scheme members, for example, are highly dependent on the initial return guarantees they are given.ATP’s pension model differs fundamentally from the UK model in that pension contributions are annuitised from the start – the scheme promises an income rather than a pot of savings that will later be used to buy an annuity.ATP said it would still hedge the new guarantees fully, but that the interest-rate sensitivity of these guarantees would be considerably lower than that of the current guarantees.The change should be seen in the context of the new discount yield curve ATP implemented last autumn to value its existing pension liabilities, the pension fund said.It said this had reduced the interest-rate sensitivity of existing guarantees by 25%.ATP also stressed that all existing guarantees would remain unchanged, and that the change would apply only to new contribution payments, affecting members born in 1964 or later.