NCPERS News Clips

7/21/2009

For Your Consideration

The second link in this week's News Clips finds The Economist doing its best in an opinion piece to take down public pensions while at the same time arguing that "riskier" DC plans for private sector workers deliver a triple whammy because they revolve around investment risk, employers pay less into them, and a greater burden is shifted to the employee. The writer then suggests that DC plans are the way to go for most public employees too. Just incredible!

• SEC Sets Public Meeting on Proposed Pay to Play Rules
  The Commission will consider whether to propose a rule to address "pay to play" practices by investment advisers.
• The Economist: Dodging the bill
  Join a private-sector company these days and you will be very lucky if you get a pension linked to your final salary. In Britain almost three out of four companies that retain such schemes have closed them to new employees.
• WSJ: Pension Calculus Draws New Scrutiny (Subscription Required)
  A California dustup over large pension payments is shining a spotlight on the practice of spiking -- increasing a salary just before retirement and boosting the lifelong payout.
• CalPERS expected to report losing nearly one-quarter of investment portfolio
  The estimated $56.8-billion drop at the U.S.' largest pension fund, the second annual loss in a row, would have a huge effect on what state and local governments must shell out to support retirees.
• Virginia Retirement System loses fifth of value
  State and local governments will have to pay more into the Virginia Retirement System because stock-market losses caused a huge decline in the system's asset value, the legislature's watchdog group was told yesterday.
• MA: Off on the public's dime
  Limo rides and dinners at Morton's steak house in Chicago. Conferences in popular resorts from San Diego to Scottsdale, Ariz., from Fort Lauderdale, Fla., to Palm Springs, Calif.
• MN: Current state of public employee pension plans to be topic of hearing
  On Wednesday, Aug. 12, the Legislative Commission on Pensions and Retirement (LCPR) will hold a public meeting in Bemidji to discuss the current state of Minnesota's public employee pension plans.
• WI: Chippewa County Board OKs early retirement plan
  In an effort to save money and cut staff without layoffs, the Chippewa County Board on Tuesday authorized an early retirement incentive program.
• Your money: Pensions, savings bonds, mortgages
  With government playing a bigger role in the economy, it's hard to keep track of all the changes affecting our personal financial lives. The flagging economy has lead to a barrage of questions. Are public sector employee pensions safe? With inflation so low, do savings bonds make sense now? And what about reverse mortgages, are they a smart move now that new rules are in place?
• Ohio PERS Names Interim Investment Chief
  Richard Shafer has been named interim chief investment officer of the The Ohio Public Employees Retirement System (OPERS), nearly two months after fulltime CIO Jenny Hom stepped down.

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