NCPERS News Clips

February 26, 2013

News Clips for February 26th, 2013

U.S. News

• Towers Watson, Aon Hewitt urge EIOPA to drop market discount rate
  Among their suggestions is to drop the market approach for determining the discount rate and instead develop a discount rate "guided by the expected return on assets", Alfred Gohdes of Towers Watson and Georg Thurnes of Aon Hewitt Germany noted in the joint paper shown exclusively to IPE. (SUBSCRIPTION REQUIRED)
• Jerry Brown administration digs in against unions on pensions
  Gov. Jerry Brown's administration is pushing back against labor union efforts to roll back some of the pension changes made by state lawmakers last year.
• State pension returns are on target
  (Maryland) In her recent column, Marta Mossburg opines that the state pension system's assumed rate of return of 7.75 percent is unrealistic, pointing to last year's earnings of 0.36 percent as proof ("On state pensions, 'Everyone else is doing it' is no excuse," Feb. 13). Interestingly, she failed to mention the system's 20 percent earnings in fiscal year 2011 and 14 percent in fiscal 2010. That data didn't fit her narrative.
• Choosing Between a Pension or a 401(k) Plan
  When you start a new job you will need to decide whether you want to be involved in a retirement plan. You might have a couple of options available to you, perhaps including a traditional pension plan (a defined-benefit plan) or a defined-contribution plan, such as a 401(k).
• Pension reporting bill clears Florida House committee
  A bill that would change the reporting requirements for the financial position of local pensions has drawn together an unlikely pair of allies: the Florida League of Cities and unions, who oppose the measure for their own reasons.
• State lawmakers introduced eight bills to boost retirement funds for government workers, could cost taxpayers $1.35 billion a year
  (New York) The moves are seen as courting labor unions, but concerns have been voiced by Mayor Bloomberg, Gov. Cuomo and others, who say the state is already experiencing a crippling burden of public employee pension costs.
• Dr. Thomas P.M. Barnett Annual Conference Video
  Dr. Thomas P.M. Barnett encourages NCPERS members to attend the 2013 Annual Conference and Exhibition in Honolulu, HI
• House committee to take up pension reform bill
  Legislation that would reform the pension system for state and local government retirees in Kentucky is expected to come up for another vote on Tuesday.
• Oklahoma Public Employees Retirement System returned 12.9% in 2012
  Oklahoma Public Employees Retirement System, Oklahoma City, returned 12.9% for the year ended Dec. 31, said Tom Spencer, executive director.
• State employees prefer pensions over a possible raise with a 401(k) plan
  (Pennsylvania) The more than 13,000 state employees in non-union positions have been pleading for justice when it comes to their paychecks.
• Washington Senate bill aims to shift state workers to 401(k)-style plan
  Many workers in Washington state government would be shifted out of pensions and into a 401(k)-style retirement system under a bill heard Monday in a state Senate committee.
• Treasurer Details New Hybrid Retirement Plan
  A new retirement system being contemplated by the Tennessee legislature would require new state employees and school teachers to potentially work more years. And their guaranteed money would be cut by roughly a third.
• How GASB Changes Will Affect Public Pensions – Part III
  The pending requirements by the Governmental Accounting Standards Board (GASB) will require understanding many new terms (some of which are explained in the GASB Part II post; Part I is here). It will also require getting used to several new numbers.

Canadian News

• OMERS Net Assets Surpass $60 Billion in 2012 With 10% Investment Return
  Strong cash generation and continuing AAA credit rating mark solid year