NCPERS News Clips

6/15/2010

News Clips for June 15th, 2010

News Clips for June 15th, 2010

• Pension Cuts Face Test in Colorado, Minnesota
  Facing shortfalls, some public pension funds are responding by paring back payouts pledged to retired workers. Earlier this year, pension funds in Colorado and Minnesota curtailed annual cost-of-living increases. (subscription required)
• We're missing the bigger picture on pay
  The fuss about how much public sector employees are paid has distracted attention from how they are paid
• Ventura city employees oppose pension contribution proposal
  The Ventura City Council was greeted Monday by unionized city employees who oppose a plan to contribute 7 percent of their pay toward their retirements to help close the city's $7.7 million budget shortfall.
• Washington-Baltimore benefits survey: Part-timers getting more perks
  Employers in the Washington-Baltimore region offered part-time workers better perks this year, such as paid days off, in lieu of creating full-time positions, according to an annual survey of human resources officials to be released Tuesday.
• San Francisco voters approve changes to pensions
  San Francisco voters have overwhelmingly approved a ballot measure aimed at curbing escalating pension costs for city workers.
• Pension Plans Go Broke as Public Payrolls Expand
  Seven states will run out of money to pay public pensions by 2020. That hasn't stopped them from hiring new employees.
• State Plan Makes Fund Both Borrower and Lender
  Gov. David A. Paterson and legislative leaders have tentatively agreed to allow the state and municipalities to borrow nearly $6 billion to help them make their required annual payments to the state pension fund.
• AG: Alaska settles pension suit for $500M
  Alaska's attorney general said Friday that the state has settled a breach of contract and professional malpractice lawsuit against its former actuary (Mercer) for $500 million.
• 61% Underfunded Illinois Teachers Pension Fund Goes For Broke, Becomes Next AIG-In-Waiting By Selling Billions In CDS
  "TRS is largely on the risky side of the contracts, selling and writing OTC derivatives, including credit default swaps, insurance-like contracts that guarantee payment in the event of a default, that were blamed in part for the 2008 collapse of Lehman Bros. and bailout of insurance giant American International Group Inc., or AIG."
• States come to grips with pricey pension promises ...
  One of the most troubling social trends in recent years has been the pension gap between state and local employees (who can retire early — often very early — with instant, guaranteed, taxpayer-paid benefits) and the private sector workers whose taxes pay for those pensions. Their retirement benefits are largely self-financed and subject to market upheavals.