News Clips for January 22, 2014

NCPERS News

NCPERS Video Blog: Secure Choice Proposal Moves into Conservative States
     Executive Director, Hank Kim discusses the recently introduced state wide pension plan for private-sector employees in Indiana. Senate Bill 66 was introduced by a republican senator; shows retirement security is more than a democrat/ liberal issue.

NCPERS Washington Update for January 17, 2014
 
National News

Veterans Lack "California Rule" Pension Protection
     President Obama signed a budget bill that cut cost-of-living adjustments in military veteran pensions last month, a few days after a judge overturned a voter- approved attempt to cut cost-of-living adjustments in San Jose city worker pensions. 

Flaws of adopting cost cutting in switching to DC plans
     Thinking back to 2007 - before the financial crisis - public pension plans in the aggregate had nearly 90% of the assets on hand required to pay retirement benefits due decades in the future. However, like all investors, public pension funds took a deep hit when the financial markets melted down in 2008. (Subscription Required) 

The Reforms That Public Pensions Really Need
     As two experts demonstrate, there's more to the prblems faced by state and local retirement systems than mere political shenanigans. 

Misdirected impulse to shift from DB plans
     Pension funds benefit from economies of scale, expertise, risk pooling and long time horizons. 


State News

Unions, Pension Board Unhappy O'Malley Cut $100M in Promised Payment to Retirement Fund
      The largest unions representing state workers and public school teachers are upset at Gov. Martin O'Malley's decision to permanently cut $100 million from extra payments into the state pension system.

Massachusetts state pension fund posted a 15.2 percent investment gain for 2013
     The Massachusetts state pension fund posted a 15.2 percent investment gain for 2013, as strong markets helped the fund add $7.9 billion to its coffers.

Justices hear case threatening public employee unions
     The Supreme Court appeared close Tuesday - but maybe not close enough - to scaling back the ability of labor unions to represent public employees.

Mich. nears deal on Detroit pensions, art
     State lawmakers are discussing a funding package to help protect Detroit pensioners and the Detroit Institute of Arts

Jersey City pension reform bill among 100 signed by Christie
     Governor Christie signed 100 bills and rejected another 44 on Tuesday, his final chance to approve bills passed in the last legislation session.

Rep. Grove takes pension reform plan before House committee
    (Pennsylvania) Bill would give cities an option to pay down unfunded liabilities, Grove said. 

Puerto Rico Supreme Court halts pension reform, angering governor
     In what Governor Alejandro Garcia Padilla called a "dangerous decision," the Puerto Rico Supreme Court late Tuesday halted implementation of a teachers pension system reform as it agreed to hear a lawsuit seeking to have the reform overturned as unconstitutional

Bills filed for 2014 session include term limits
     Some of the bills filed before Thursday's deadline to be considered by the 2014 Oklahoma Legislature look to fund storm shelters in public schools and cutting legislative pay. 

City of Tulsa pension study progresses
     The system is being reviewed with an eye toward shifting from a defined pension to a 401(k) like system.


Canadian News

Canada: Can An Employer Unilaterally Change Its Pension Plan From A Defined Benefit Plan To A Defined Contribution Plan In The Unionized Context?
     In recent years, most employers who have Defined Benefit pension plans ("DB" plans) are looking for ways to contain rising costs associated with the DB plan and to maintain a level of predictability with respect to contributions made to the plan.

Redford government's proposed cuts to public-sector pensions are "unjustified, unfair and reckless
     New actuarial study demonstrates that Alberta pension plans are healthy and getting healthier - even without benefit changes

Hawaii Employees puts $50 million into infrastructure fund
     Hawaii Employees' Retirement System committed $50 million to McMorgan Infrastructure Fund. (subscription required)


Opinions

Washington State Debates Innovative Pension Reform
     In Washington State, a group of state legislators is taking steps toward a defined-benefit pension plan for public workers.