NCPERS News Clips

2/23/2010

News Clips for February 23rd, 2010

• Illinois Pension Fund $61 Billion Underwater; State Borrows Money For 2010 Contribution; California $20 Billion in the Hole Again
  The state's reaction never changes: borrow money and hope the returns beat the cost of borrowing. Former governor Rod Blagojevich tried that to the tune of $10 billion and it worked out less than spectacularly to say the least. Nonetheless Illinois is back at it for 2010.
• In private, Virginia governor pushes deep budget cuts
  Virginia Gov. Robert F. McDonnell (R) has privately recommended cutting $730 million from K-12 education and $300 million from health programs, as well as changing the state retirement system and requiring 10 days of furloughs for state employees, all to help offset a $2.2 billion budget shortfall over two years, according to sources familiar with the plan.
• Walker suggests 401(k)-style plan to replace current county pension system
  Milwaukee County would phase out its costly pension plan and replace it with a 401(k)-style program for new employees under a proposal by County Executive Scott Walker
• NY's pension fund up $3.4B
  New York state's pension fund continues to bounce back from the recession, posting positive rates of return, state Comptroller Thomas DiNapoli said on Thursday.
• Pension limits gain Senate support
  A major overhaul of Utah's public employee retirement system now appears to be a lock to pass the Senate after a lopsided preliminary vote Thursday and opponents are focusing their efforts on stopping the bills in the House.
• Feds take over pension plan at financially-strapped Syracuse nursing home
  A federal agency has taken over the underfunded pension plan of James Square Nursing Home Inc. so that the 455-bed Syracuse facility can keep its doors open.
• Panel sets out 3 Atlanta pension options
  For years, Atlanta's pension funds for its retirees have been underfunded -- meaning there was not enough money invested to cover benefits for retirees and future retirees. On top of that, the recession has hurt the performance of the funds.
• Study: States must fill $1 trillion pension gap
  States may be forced to reduce benefits, raise taxes or slash government services to address a $1 trillion funding shortfall in public sector retirement benefits, according to a new study that warns of even more debilitating costs if immediate action isn't taken.