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DC plans lead to less commitment, higher employee turnover
A new research brief examines the workforce impacts of existing defined benefit pension plans to assess the likely effects of a switch to defined contribution individual accounts or cash balance plans.
MA Public Pension Costs Among Nation's Highest
The Commonwealth's public employees contribute an average of 10 percent of their salaries to the state's pension programs, one of the highest contribution rates in the country.
NCPERS Video Blog!
Hank Kim discusses the Pew Center and their inflammatory reports on DB plans
The third way – creating a plan for those without workplace pensions
Many critics of traditional defined benefit pension plans for the public sector, such as Ontario's Progressive Conservatives, try to make the argument that taxpayers should not have to support pension plans that they don’t benefit from.
California's pioneering pension law
The private sector has an inadequate retirement system. It is too small and too risky. With the decline of defined benefit pensions, most private sector workers will end up with Social Security and the balances in their 401(k) plans.
Pension reform awaits when session begins
Illinois lawmakers return to the Capitol on Tuesday, hoping to achieve what they failed to get done the last time they were in town.
TASK FORCE: FULLY FUND STATE WORKER PENSIONS
(Kentucky) A legislative task force has recommended the state fully fund pension contributions and move new public hires, judges and legislators into a cash-balance retirement plan not as generous as the current one.
Corbett stresses state pension crisis in 2013 agenda
(Pennsylvania) In a speech light on details Monday, Gov. Corbett presented a broad outline of his agenda for 2013, saying his chief priorities are addressing the pension crisis, privatizing state liquor stores, and combating the high cost of college.
Tories want Ontario public sector pensions changed to defined contribution
Ontario's Progressive Conservatives said Monday that taxpayers can no longer afford "gold-plated pension plans" for public sector workers, but the Liberal government called the Opposition's proposals an American-style attack on the middle class
Canada Pension Plan looks for big, global deals
The Canada Pension Plan Investment Board, one of the world's biggest pension funds and global dealmakers, said it was looking for big, complex acquisitions to boost its portfolio and outmaneuver rivals as the world's economy improves.
NCPERS Video Blog!
Hank Kim discusses the results of the national and state elections, and the impact it will have on public plans.
NCPERS Video Blog!
Hank Kim discusses Hurricane Sandy relief distribution
Incumbents, amendments generally get nod in pension-related races
Incumbent candidates and parties largely won state and local elections that could potentially have the greatest impact on pension plans and reform, while most pension-related constitutional amendments passed. (subscription required)
Illinois Democrats Win Supermajority, Will Address State's Own 'Fiscal Cliff'
Illinois Democratic lawmakers, facing the state's own version of the fiscal cliff, are expected to use their newly won veto-proof majority in the legislature to solve the state's impending financial crisis with permanently higher tax rates on personal income and corporations.
GOP pension-reform effort scrambled by Democratic House takeover
A special House committee voted Thursday to recommend that the Legislature replace New Hampshire's public-employee pension system with a 401(k)-style defined-contribution plan for newly hired state workers.
Questions Answered About Pension Plans
Readers recently submitted questions about pension plans to Mary Williams Walsh, a business reporter for The New York Times who has written about how companies manage their pension plans; what happens when companies go bankrupt; public workers' pensions and how they may affect state and local finances; and Chapter 9 municipal bankruptcy.
Romney's public disservice
WP OpEd: As Hurricane Sandy forced evacuations and shut down public transit, New York City bus drivers transported patients to hospitals. Nurses stayed and watched over the sick. First responders marched into danger.
How States Underfund Public Pensions
Politicians evade balanced budget requirements and debt limits by underfunding public pensions, covertly passing the financial burden onto future taxpayers.
Will L.A. make 401(k)-style public pensions a trend?
Signature gathering began last week for an initiative to switch new hires of California's largest city from pensions to a 401(k)-style plan, a change begun in the second largest city, San Diego, after voters approved a similar initiative in June.
NCPERS Video Blog!
Hank Kim discusses the importance of public sector employees becoming politically active.
2012 Health and OPEB Funding Strategies
For many local governments, 2012 is an inflection point. New data show a brightening revenue outlook. But the cost of health insurance for employees and retirees is rising after a brief 2011 reprieve.
GASB Tries to Clear up Pension Standard Confusion
The staff of the Governmental Accounting Standards Board has created a fact sheet to clear up some of the misconceptions about the recent changes in public pension accounting standards.
GASB's Pension Accounting Standards: Déjà vu all over again
The path to where we are today regarding generally accepted accounting principles for public pension plans, with the advent of the Governmental Accounting Standards Board in between, is probably worth tracing if for no other reason than to be sure the history is not lost.
California's Retirement Savings Revolution
But the California state government is seeking to change that. Less than a month ago, Gov. Jerry Brown signed the law that created the California Secure Choice Retirement Savings Trust, and assuming that the program survives a market analysis study, gets a sign-off from federal officials, and once again gets approval from the California legislature, the law will go into effect.
City Challenges Norm on Paying Into Calpers
San Bernardino, Calif., is challenging the norm that cities will always make their payments to Calpers, the state's pension fund, even in bankruptcy. (Subscription required)
The Washington Post Tries to Scare You on Public Sector Pensions
The Washington Post rarely tries to conceal its contempt for unions or middle class workers. In keeping with this spirit it ran a column today that was intended to scare readers about the extent to which public sector pensions will impose a burden on taxpayers in the years ahead.
NCPERS Video Blog!
Hank Kim discusses NCPERS upcoming membership renewal in this week's video blog
Milliman: 2012 Public Pension Funding Study
The Milliman Public Pension Funding Study independently measures the aggregate funded status of the 100 largest U.S. public pension plans using basic actuarial principles and reported plan liabilities and assets
Exclusive: Study shows $1.2 trillion gap for public pensions
The largest 100 public pension funds have around $1.2 trillion of unfunded liabilities, about $300 billion above the nearly $900 billion they reported themselves, according to a new actuarial study to be released on Monday.
Candidates vow to protect teacher retirement system
(Virginia) State representative candidates answered questions at a Madison County Retired Teachers' Association legislative forum Wednesday. Most of the questions focused on policies about teacher retirement and all six candidates were in attendance.
Republicans build up, then fight, issue of bailouts for pension funds
Concern over underfunding of both public and corporate pension plans has Republican presidential candidate Mitt Romney, his party and other conservatives making a pre-emptive strike against the idea of federal government bailouts.
10 states where the public pension fight is fierce
Many are dealing with big pension bills by reducing retirement benefits. Here's a look at 10 states that have taken steps to address unfunded pension liabilities — or the amount of money the state has to pay out but for which it has no funding in the pension pool.
Republicans build up, then fight, issue of bailouts for pension funds
Concern over underfunding of both public and corporate pension plans has Republican presidential candidate Mitt Romney, his party and other conservatives making a pre-emptive strike against the idea of federal government bailouts.
10 states where the public pension fight is fierce
Many are dealing with big pension bills by reducing retirement benefits. Here's a look at 10 states that have taken steps to address unfunded pension liabilities — or the amount of money the state has to pay out but for which it has no funding in the pension pool.
NCPERS Video Blog!
This week, Hank Kim discusses NCPERS 2012 Public Safety Pension & Benefits Conference
Hank Kim: Senate Bill 1234 a win-win for Californians
Senate Bill 1234 deserves a much closer and more far dispassionate review by the Appeal-Democratand others who have voiced disapproval — disapproval not based so much on what the bill would do, but by misplaced feelings about CalPERS.
Reader Rebuttal (Hank Kim): SB1234 pension plan
Senate Bill 1234 deserves a much closer and more far dispassionate review by the Orange County Register and others who have voiced disapproval ["Keep state away from private pensions," Editorial, Sept. 18] – disapproval not based so much on what the bill would do, but by misplaced feelings about CalPERS.
State Public Pension Gap: Shrinking But Still Huge
(Blog): In case you missed it this weekend, the top story in Saturday's Wall Street Journal – called Pension Crisis Looms Despite Cuts – pointed out that despite a $100 billion trimming across nearly every state to public-employee benefits, a $900 billion retirement funding gap remains
DeMint: No fed bailout for state pensions
The Illinois Policy Institute launched “No Pension Bailout,” a national movement to block Congress' attempts to rescue failing state and municipal pension plans.
NCPERS Video Blog!
Hank Kim discusses NCPERS Moody's comment and California's SB 1234
California unions assail public pension changes
As Gov. Jerry Brown signed legislation Wednesday aimed at overhauling the state's overburdened public pension system, he acknowledged that further action may be needed in the future, saying "government, like a battleship in the ocean, turns slowly."
California retirement plan could serve as a national model
A bill to create a publicly administered retirement savings program for private-sector workers in California who do not have access to an employer-sponsored plan has passed both houses of the state legislature and awaits the signature of Governor Jerry Brown.
The “Everybody’s Doing It” Argument of Pensions
With the ongoing NFL referees contract dispute, Dave Jamieson of the Huffington Post interviewed Commissioner Roger Goodell asking him about the issue of pensions.
A modest proposal
Get Illinois legislators out of the local pension game
Pensions Overhaul Is Urged
Just months after Connecticut's underfunded pension system was ranked among the worst in the U.S., a new research group is calling for the state to move to 401(k) retirement accounts for new government employees and to make other changes. (subscription required)
Can California Change How We Save for Retirement?
The state has often set trends for the country in areas ranging from the environment to food and popular culture. Now, California is moving toward launching an innovative new approach to retirement saving that addresses two key problems facing Americans: the lack of workplace pension programs among small businesses and the structural shortcomings of 401(k) plans.
Welcome to NCPERS Video Blog!
Executive Director, Hank Kim, will be sending out a weekly video blog. He will discuss current pension related news and encourages our members to comment and submit topics.
Florida High Court to Weigh $1 Billion State Pension Case
The Florida Supreme Court is to hear arguments on whether Republican-backed changes to the state's public-employee pension system, touted as a way to save more than $1 billion a year, violate workers' constitutional rights.
Panel OKs raises for Kansas public employees
A committee overseeing state employee pay is recommending about $11.4 million in raises for underpaid state workers, with corrections officers at Kansas prisons among the groups benefiting most.
Michigan governor signs bill attacking school employee pensions
Michigan Republican Governor Rick Snyder signed legislation Tuesday requiring the state's 475,000 active and retired public school employees to contribute more toward their pensions and eliminating fully paid retiree health care benefits for newly hired teachers. The bill is widely seen as the first step in a move to eliminate school pensions altogether.
Ohio lawmakers near vote on reform to public pensions
Rep. Kirk Schuring, R-Canton and chairman of the House subcommittee that has had hearings in recent weeks on the legislation, said he expects the panel and the full House Health and Aging Committee to sign off on the proposals on Monday with a floor vote by midweek.
Is California ready for state-run private pensions?
OpEd: As the nation debates public health care and governments grapple with public employee pension obligations, California may be on the verge of a new entitlement — state-sponsored retirements for private workers.
California leaders strike public pension reform deal
California Governor Jerry Brown and lawmakers have reached a deal to raise public employees' retirement ages, have them pay more into their pension accounts, and cap retirement payments in a vast overhaul of the state's pension system that he says will save $30 billion.
Rhode Island Setting Standard for Bondholders' Love: Muni Credit
Central Falls, the first city in Rhode Island's 222-year history to go bankrupt, is preparing to exit court protection after 13 months by keeping bondholders whole while raising taxes and cutting workers and pensions.
California Lawmakers Approve Private-Pension Management
California's Assembly passed a bill that would permit as many as 6.3 million private workers without a pension plan to set aside retirement money for management by the state.
Gap between public, private pensions troubles retirees
Kenneth Murphy and Alice Jordon are about the same age, worked long careers in their chosen fields and retired on roughly similar incomes. But that's about where the similarity stops. Their differences illustrate the growing divide between retirees in the public and private sectors.
New York to hike public pension contributions-comptroller
New York State and its local governments will pay more for public pensions in fiscal 2014, with the average employer contribution to rise to 20.9 percent of workers' salaries from the current 18.9 percent, State Comptroller Thomas DiNapoli said in a statement on Friday.
How Plan to Help City Pay Pensions Backfired
Jeffrey A. Michael, a finance professor in Stockton, Calif., took a hard look at his city's bankruptcy this summer and thought he saw a smoking gun: a dubious bond deal that bankers had pushed on Stockton just as the local economy was starting to tank in the spring of 2007, he said.
Big Income Losses for Those Near Retirement
Americans nearing retirement age have suffered disproportionately after the financial crisis: along with the declining value of their homes, which were intended to cushion their final years, their incomes have fallen sharply.
Groups defend public pensions
Backers of pension plans that promise public employees a predetermined benefit when they retire are taking the offensive against opponents who want do away with such benefits.
San Jose Police Department losing some of its best after pension reform
After almost 14 years with the department, Thursday was Pace's last day as a San Jose cop. She's trading in her sergeant's badge to become a patrol officer in Hillsboro, Ore. Pace is one of 79 officers who have resigned from the San Jose Police Department since 2011, including 30 this year.
NCPERS News Clips
August 28, 2012
News Clips for August 28th, 2012
California Wants a Private Pension Plan for Everyone
Hank Kim: Your editorial "Another California Brainstorm" (Aug. 22) comes to very wrong conclusions about California Senate Bill 1234.
Big Income Losses for Those Near Retirement
Americans nearing retirement age have suffered disproportionately after the financial crisis: along with the declining value of their homes, which were intended to cushion their final years, their incomes have fallen sharply.
Groups defend public pensions
Backers of pension plans that promise public employees a predetermined benefit when they retire are taking the offensive against opponents who want do away with such benefits.
San Jose Police Department losing some of its best after pension reform
After almost 14 years with the department, Thursday was Pace's last day as a San Jose cop. She's trading in her sergeant's badge to become a patrol officer in Hillsboro, Ore. Pace is one of 79 officers who have resigned from the San Jose Police Department since 2011, including 30 this year.
Current and retired NC employees question why pension fund invested in Facebook stock
Current and retired state employees want the North Carolina treasurer to answer questions about why the state's pension fund used a firm that invested in Facebook stock.
Voters grilling Illinois legislative candidates about failure to fix state pension system
Voters may not follow all the details of the state's huge pension problem, but they know a train wreck when they see one.
CA Bill to Create State Pension Program
Anathema to life industry, nears passage
New rules expose bigger funding gaps for public pensions
Already-strapped state and local governments are coming under increasing pressure to reduce pension benefits or increase taxpayer contributions that help pay for them because of new rules that would require them to report those obligations more honestly, advocates say.
Calpers Defends Pension Benefits While Risking Losses
The California Public Employees' Retirement System, the largest U.S. pension, is defending government workers against criticism of their benefits even while it risks losses as municipalities, faced with rising retirement costs, file for bankruptcy.
Illinois Legislators Fail to Agree on Pension Package
Illinois lawmakers, who gathered at the Capitol in Springfield for a special session on Friday, failed to reach agreement on a pension package aimed at addressing the state's ballooning fiscal problems.
Michigan Legislature approves changes for teachers
Newly hired Michigan public school employees would pay more for their pensions and no longer receive state-provided health coverage in retirement under legislation approved Wednesday and headed to Republican Gov. Rick Snyder's desk.
Lawsuit filed against new state retirement plan
An organization representing Louisiana's retired state employees today challenged Gov. Bobby Jindal's new pension plan for future rank-and-file state workers.
Why you may retire in poverty
Today's seniors are more affluent than the general population. But the generations that follow them - starting with the baby boom generation - will not be as fortunate. The decline of pensions, the erosion of Social Security and the housing crash all are pointing toward a new crisis of poverty among lower- and middle-class seniors in the years ahead.
How the GASB's New Pension Standards Could Make Things Worse
Opinion: The agency responsible for public pension accounting, the Government Accounting Standards Board, or "GASB," allows state and local governments to report far greater fiscal health by comparison and collective underfunding of only about $1 trillion.
NM may owe $20M in back pay to state workers
About 11,000 state workers are entitled to retroactive pay increases because former New Mexico Gov. Bill Richardson's administration didn't follow union contracts in distributing money provided by the Legislature four years ago, the state Court of Appeals has ruled.
The $7.8 Billion State Retirement System Rip-off
A recently published study by Jeff Hooke and Michael Tasselmyer of the Maryland Public Policy Institute took a look at the $37.6 billion Maryland State Retirement and Pension system. Their findings weren't pretty, but they are elucidating for both individual and institutional investors.
State Pension Systems on the Rebound
Things are starting to look up for state pension systems. "Conditions affecting public pension plans continue to improve," said Keith Brainard, research director for the National Association of State Retirement Administrators.
Collective approach is most efficient way to save for retirement: Pitt-Watson
"We know that with collective structures we can get better pensions. And if we don't offer them then older people will need to work beyond their years, or have inadequate income in retirement. So it's not just about better policy, its about a better society." – David Pitt-Watson
Harkin proposes private retirement plan
U.S. Sen. Tom Harkin is proposing a private retirement plan to supplement Social Security and personal savings that would guarantee retirees an annual annuity.
Proposed Pension System Faces Fiscal and Political Hurdles
A proposal to create universal retirement accounts in the US could have huge effects on the investment consulting and asset management businesses—but the devil is in the details.
GOP lawmakers may sink employee pacts
Public employee contracts for Minnesota state workers are likely to face opposition in the Republican-controlled Legislature.
Governor amps up pressure to overhaul pensions
Gov. Pat Quinn amped up the pressure on lawmakers to overhaul Illinois' pension systems and warned on Sunday of massive future budget cuts for school districts as a consequence.
U.S. Public Pensions Earn 1.15% For Worst Showing Since 2009
U.S. state and local-government pensions ended the 2012 fiscal year with a median gain of 1.15 percent as the European debt crisis and a slowing global economy damped stock returns, Wilshire Associates said.
Bankrupt cities? Don't blame unions
Stockton and San Bernardino were brought down by the most severe housing busts in the nation, and by banks peddling subprime mortgages to poorly paid workers.
New report says that no pension means more hardship
In 2010, the poverty rate for elderly households that did not have pension income was nine times greater than for households with pensions, a Thursday report revealed.
GASB Approves New Pension Accounting and Reporting Standards
The following memorandum briefly summarizes key elements of the new pension accounting and reporting standards recently approved by the Governmental Accounting Standards Board (GASB). Gabriel, Roeder, Smith & Company (GRS) plans to provide a more detailed explanation of the changes when the final Statements are released by the GASB in August 2012.
NCPERS Issues Statement on Report of the State Budget Crisis Task Force
The following is a statement by Hank Kim, Esq., Executive Director and Counsel of NCPERS: "The Report of the State Budget Crisis Task Force verdict on the role public pensions are playing in state and local government fiscal woes - which recommends stronger local funding policies and greater disclosure - is a balanced one.."
NCPERS: Public pensions are recovering from recession
Despite years of underfunding by state and local governments, most public pension plans are "solidly funded and are experiencing a robust recovery from the Great Recession," according to Hank Kim, executive director and counsel of the National Conference on Public Employee Retirement Systems (NCPERS).
5 Myths About Public Employee Pensions
OpEd: There's an oft repeated myth being fed by many that claims the defined benefit pension plans available to most public employees are going bankrupt.
Defined Benefit Criticisms are Based on a Misinterpretation of Funding
PensionDialog welcomes the following guest post by Victoria Hubbell of the Healthcare of Ontario Pension Fund. These days, it's hard to read an article about traditional defined benefit pension plans that doesn’t deal with funding — whether in the U.S. or in Canada. Yet pension plan funding is not as straightforward a concept as it may appear.
US public pension funds to face calls to set realistic targets
U.S. public pension funds are expected to report poor annual returns in the coming weeks, results that are likely to increase calls for more realistic retirement promises for teachers, police officers and other public workers.
Gov. Jerry Brown, Democrats fail to reach pension reform deal
The governor said Tuesday he could not reach a deal with Democratic leaders on sweeping public pension reform and suggested talks continue during a month long recess that begins at the end of the week.
AFSCME Head Gets Ready to Battle Over Pensions
Labor officials credit Republican lawmakers for starting a national dialogue about collective bargaining rights, albeit a tense one. That dialogue might soon turn to pensions.
Pension debts in Illinois and Chicago would soar under new Moody's ratings plan
In a proposal that could heighten the stakes for pension reform in both Illinois and Chicago, a leading credit rating agency plans to recalculate public pension liabilities with much more conservative financial assumptions than most states or cities have been using.
NASRA: Public plans exceed assumed rates of return over time
Public defined benefit plans are lowering their assumed rates of return in record numbers, even though most public plans are meeting or exceeding those rates over time, according to a new issue brief from the National Association of State Retirement Administrators.
Attorneys: Budget shortfall not enough justify changes to retirement benefits
The lawyer leading a lawsuit challenging a 2011 retirement law says in court papers that a budget shortfall does not necessarily justify reducing cost-of-living increases for public pensions or requiring employees to contribute a portion of their salaries to their retirement.
Stop Talking, Start Walking—the Secure Choice Plan Builds Retirement Security
American private sector workers are woefully ill prepared for their retirement years. The Center for Retirement Research of Boston College has estimated a retirement savings deficit of $5 to $8 trillion for American households in their peak earning and saving years (ages 32 to 64) to maintain their standard of living in retirement and remain robust contributors to the national economy.
Report recommends no changes to Wis. pensions
A highly anticipated report ordered by Gov. Scott Walker and the Republican-controlled Legislature and released on Monday recommended no changes to Wisconsin's $77 billion pension system.
Five things to consider before cutting pension benefits
The message from voters about public pension plans is clear: They're ready to cut the retirement benefits of police, firefighters, teachers and other state and municipal workers.
With pension fund investments, private equity pays off for Oregon
Three decades ago, Oregon changed the landscape of the investment world. Through the citizen-led Oregon Investment Council, Oregon became the first state where a public pension fund made an investment in an asset class known as "private equity."
Walker: Willing to look at Wis. pension system
Wisconsin Gov. Scott Walker said Monday that he would be willing to consider changes in the state's $77 billion pension system, with a report on expected to be released this week on how the system could be improved.
GASB Improves Pension Accounting and Financial Reporting Standards
The Governmental Accounting Standards Board (GASB) today voted to approve two new standards that will substantially improve the accounting and financial reporting of public employee pensions by state and local governments.
Retirees fear more changes to public pension system
Meanwhile, some retirees are nervous about a special report due June 30 on possible changes that could shrink the pension pool by allowing employees to opt out or choose alternative plans.
Private equity hearts unions
Public-sector unions raised some eyebrows when they joined the Democratic offensive against Bain Capital earlier this year. Despite their attacks on Romney’s firm for “putting profits above workers,” unions have ramped up their pension fund investments in private equity to record levels.
California Public Employees Win Concessions in New Budget
The budget California's Democratic- controlled Legislature sent to Governor Jerry Brown last week granted concessions to public employee unions even as talks continue on cutting programs for the poor.
Public-Workers' Union Regroups After Wisconsin to Plot Comeback
Leaders of the largest U.S. union of government workers this week will choose a new president amid assaults on bargaining rights from statehouses and growing hostility from voters who view their benefits as an unsustainable expense.
US public retiree benefits gap grows to $1.38 trln
The funding gap for U.S. state public employee retirement benefits climbed by $120 billion to $1.38 billion in fiscal 2010, according to a report released on Monday.
San Diego, San Jose Voters Approve Pension Cost Limits
“While we respect the decision of San Diego and San Jose voters, these measures will have perilous long-term consequences for workers, the economy and the public,” Dave Low, chairman of the labor-backed Californians for Retirement Security
NCPERS Survey Finds Public Pensions Remain Solidly Funded, Funds Express High Confidence in Plan Sustainability
The most comprehensive and up-to-date study addressing retirement issues for public pension plans finds state and local pension funds remain solidly funded, have strong confidence in their ability to address retirement trends and issues and continue to adopt organizational and operational changes to ensure their long-term sustainability.
Defined benefit plans ready to deliver adequate pensions: NCPERS
Far from being panicked and pessimistic about future prospects, American public pension plans are confident in their ability to adapt to change and deliver on the promise of adequate retirement income.
South Carolina's Pension Push Into High-Octane Investments
What is sure is that while he was running things, South Carolina ended up paying hundreds of millions of dollars in fees — $344 million last year alone — to a Who's Who of hedge fund managers and private equity deal makers.
Campaign to Launch New DB Plans Takes Root
A campaign to launch a series of hybrid cash balance-defined benefit (CBDB) pension plans across all 50 states is taking shape, in an effort that would target small employers with a new option for delivering employee retirement benefits. (Subscription Required)
The Retirement Savings Drain: Hidden & Excessive Costs of 401(k)s
Though your retirement or bank accounts statements contain no evidence of it, everyone who has an IRA, 401k, or any other individual retirement savings account pays a variety of fees every year.
Jindal pension changes for current workers stalled
Gov. Bobby Jindal's proposals to raise pension costs on rank-and-file state employees ? and to make them wait longer to retire ? appear dead for the legislative session, after running into strong opposition and constitutional questions.
Public Pensions Faulted for Bets on Rosy Returns
While Americans are typically earning less than 1 percent interest on their savings accounts and watching their 401(k) balances yo-yo along with the stock market, most public pension funds are still betting they will earn annual returns of 7 to 8 percent over the long haul, a practice that Mayor Michael R. Bloomberg recently called “indefensible.”
Ohio House, act now on pension reform: Thomas E. Niehaus and Eric H. Kearney
The Ohio Senate recently passed five landmark pension reform bills designed to provide greater retirement stability for more than 1.7 million Ohioans. Some have questioned the timing of our action, so we thought an analogy might help.
Cash balance plans gain favor as option among public pension funds
Public pension fund boards and state legislators are showing increased interest in cash balance and other hybrid plans as the unfunded liabilities of traditional defined benefit plans continue to grow.
Coalition issues guidelines for public pensions
A coalition of bond lawyers, analysts, auditors, state treasurers, pension administrators, securities professionals, bond dealers and issuers released on Thursday a framework for describing financial strains on state and local governments caused by pension funding obligations.
Senate passes bill to end pensions for new teachers
(Michigan) Legislation that would end pensions for new public school employees and switch them into a 401 (k)-style retirement plan passed the Michigan Senate on Thursday.
Pension bills still in negotiation
Wednesday is “D-Day” on the fate of Jindal administration legislation that would raise the retirement age for some state employees, the Senate sponsor of the legislation said Friday.
U of I profs have own pension ideas
Gov. Pat Quinn's proposal to restructure state pensions has gotten a lot of attention since he introduced it in April, but it's not the only plan on the table.
Taking slice out of labor key to Gov. Jerry Brown's tax campaign
Demanding a 5 percent pay cut is a curious way to reward some of your strongest political allies. But taking a slice from the hide of labor has become a key component to Gov. Jerry Brown's strategy of getting voters to pass his tax hikes in the fall.
N.Y. state pension chief hammers at 401(k) option
New York state Comptroller Thomas DiNapoli on Tuesday continued his criticism of 401(k) plans being offered as options to public employees, calling the DC option “woefully inadequate” for people who rely on them for the primary source of retirement income.
NYC comptroller still sees DB as best form of pension
Those who know DB the best are not backing off their defense of the traditional pension model, saying it offers the best solution for providing adequate retirement income, as well as individual dignity and quality of life. New York City Comptroller John C. Liu is among the more vocal advocates for DB.
NCPERS Awards $40,000 to College Scholarship Program For New York City Public School Students
The philanthropic arm of the National Conference on Public Employee Retirement Systems (NCPERS) has awarded $40,000 to the Albert Shanker College Scholarship Fund of the United Federation of Teachers (UFT), which awards more than 200 college scholarships each year to academically excellent and financially eligible students from New York City public schools.
Senate waters down, then passes Jindal bill to increase retirement costs for state workers
Louisiana senators agreed Monday to Gov. Bobby Jindal's proposal boosting the amount rank-and-file state workers pay for their retirement — but only after adding several provisions that make it unlikely the full 2 percentage point increase would take effect anytime soon.
401(k)s are too risky for retirement
She was always good about saving, but because of forced retirement at 62, the self-employed interpreter is now limited to a $500 monthly budget.
California pension reform may take back seat to budget fix
Faced with worsening budget problems, chances are growing that the Legislature won't vote on comprehensive pension reform until the end of the session in August, some officials said Wednesday
Locals targeting pension changes
The mayors of San Jose and San Diego are backing local measures on the June ballot that aim to make the change critics of costly public pensions say is the key to major reform — cutting the cost of pensions earned by current workers in the future.
Pension reform moves out of committee
The Senate Retirement Committee watered down Governor Bobby Jindal's pension reform plan. The bill passed without objection will increase the employee contribution to their retirement by two percent and make them wait longer for their pension benefits.
Judge sides with police union on new co-pays, deductibles
(Wisconsin) A judge on Friday granted a permanent injunction blocking Milwaukee's efforts to make its police officers pay new deductibles and co-pays as part of their health insurance.
Pension plans launch $20 bln infrastructure fund
One of Canada's largest pension plans teamed up on Thursday with Japan's pension funds and some of its major conglomerates to help raise $20 billion for the world's largest infrastructure fund to invest in assets such as roads and airports.
Illinois is running out of time and money
After trying to tax Illinois to governmental solvency and economic dynamism, Pat Quinn, a Democrat who has been governor since 2009, now says “our rendezvous with reality has arrived.” Actually, Illinois is still reality-averse, so Americans may soon learn the importance of the freedom to fail in a system of competitive federalism.
Defined benefits are being re-imagined
Traditional pensions are struggling for many reasons: low investment returns, too-generous benefits, and the happy fact that people are living longer than expected.
My Faith-Based Retirement
(Op- Ed) My 60th birthday is less than a week and a half away, and if there is one thing I can say with certainty it's that 60 is not the new 50.
The Secure Choice Pension for Private Sector Workers
American private-sector workers need a new choice that provides a secure yet flexible retirement program. Most individuals need to save more for retirement.
Talks highlight pension issues
What's in and what's out of legislation that would change retirement rules for some 50,000 Louisiana State Employees Retirement System members remains in question days after a state Senate panel approved a heavily rewritten measure, the pension system's director said Wednesday.
Let's protect pensions, not loopholes
Do you think middle-aged Wall Street billionaires are worried about their retirement security? Are they tormented by the choices they face: Palm Beach or Aspen?
DC37 attacks Cuomo's pension reform and mayor's executive order
On the state level, District Council 37 remains opposed to pension reforms pushed through by Gov. Andrew Cuomo. It is also blasting New York City Mayor Michael Bloomberg for his executive order that takes away City
Action slow on Brown's pension reforms
SACRAMENTO — It’s been six months since Gov. Jerry Brown put forward his proposals to make the public pension system more affordable, yet action on his 12-point plan has been nearly imperceptible.
Our view: Adjust COLA in pensions
Ingram correctly pointed out that the state's unpaid bills, increasing Medicaid costs, and more than $80 billion in unfunded pension liability are going to pose a problem for future pension funding – with or without reduction of pension benefits for current and future teachers.
Jindal's Retirement Legislation Is Moving
The legislative session began with hordes of teachers descending upon the State Capitol to oppose Governor Jindal's aggressive education reform package. The dust had barely settled after those two historic bills were passed, a new battle began brewing over the administration's efforts to reform the state's retirement system.
Minnesota lawmakers preparing for next contract showdown with state workers
The Minnesota Senate today passed a bill that prevents public employees and governments from extending a union contract beyond the point at which it expires. Before doing so, however, it added an amendment that eliminates police, fire, corrections, military and veterans services workers from its impact.
The War on Public Sector Workers
The targets of these politicians' wrath are school teachers, firefighters and other public sector workers.
Maryland boldly seeks return to full funding
The system is more than 10 per cent below the average funded level of US public pension funds and both state politicians and the system's board have put in place programs that aim to have the system reach 80-per-cent funding by 2023.
Legislature may take up pension reform sooner than expected
(Ohio) Earlier this year, I shared that it was anticipated there would be no movement on pension reform legislation until after the November election. It now appears the Ohio Senate intends to move on this legislation before the conclusion of its spring session.
Lawmakers hammering out 'hybrid' pension plan
(Santa Rosa, CA) A two-house legislative committee is working with Gov. Brown's Department of Finance on a 'hybrid' retirement plan for new state and local government hires, a committee member told a forum here last week.
Opposing view: Offer retirement security for all workers
Social Security benefits average just $1,200 a month, leading many workers to rely on employer-sponsored plans such as 401(k)s to maintain their standard of living when they retire. Yet, these plans come with high fees and a complicated array of investment options, not to mention painful losses when markets decline.
Editorial: Publicly run pensions invite trouble
If worrying about government debt, the sluggish economy and high gas prices weren't enough, consider this: America is facing a retirement crisis.
Pension reform headed to full House, Senate
(Alabama) Pension reform legislation won approval in House and Senate committees Thursday. The changes are designed to save the state billions over the 30 years.
GOP lawmakers won't budge on pension-overhaul plan
(Washington) As the Legislature slogs through its special session, Republicans show no sign of backing down from proposed pension-system changes that public employees call a "war on workers."
Sustainable Retirement: Who's going to be a millionaire?
(Blog) When did the idea that "retirement with dignity" change? When did retirement become a privilege, not a right? When did we stop hoping for good health and long life when our working years were over and start wondering if we could ever stop working?
Meister: It's not true, what they say about pensions
So, what are we going to do about those big fat pensions collected by public employees? You know, those retirement benefits that supposedly are threatening to bankrupt state and local governments everywhere.
States From Ohio to Florida Weigh Running Company Funds
Six U.S. states, led by Massachusetts and California, are taking steps to put public pension overseers in charge of retirement savings plans offered to nongovernment workers, according to an advocate of the idea.
TRS Executive Director Richard Ingram's Address to Delegates at the IEA Representative Assembly
“We cannot invest our way out of the funding circumstances that have been created over the last three, four, five decades… We can no longer rely on the old assumptions… We need to address the new funding realities… The constitutional protections that we focus on, very appropriately here, create a different kind of challenge for us.” –Richard Ingram
Cuomo signs pension reform
(NY) Gov. Andrew Cuomo on Friday enacted a pension reform plan promising to save municipalities across the state a combined $80 billion of the next 30 years, including Erie and Niagara counties
Pension case going to state Supreme Court
A circuit judge's ruling invalidating the state's 3-percent employee pension contribution requirement will be decided by the Florida Supreme Court, an appellate court ruled Friday, passing the issue straight up to the state's highest court.
Largest N.Y. public workers union won't endorse, give to candidates
The state's largest public-employees union said Monday it would suspend all political endorsements and contributions after the state Legislature and Gov. Andrew Cuomo last week approved a less generous pension tier for new workers.
Judge rules Florida pension changes unconstitutional
In a dramatic defeat for the governor and the Florida Legislature, a Leon County circuit judge on Tuesday ruled that the decision last year to cut public employee salaries was an unconstitutional breach of the state's contract and ordered the money returned with interest.
Legislature overreaches, public pays the bill
(FL) Editorial: Tuesday's ruling that cutting public employee salaries to help pay for pensions is unconstitutional is not the result of an activist judge as some Republicans complain. It reflects the failure of the executive and legislative branches to recognize their limits and the role of an independent judicial branch.
Cuomo's Pension Plan Rejected by New York Assembly Democrats
Assembly Democrats rejected Governor Andrew Cuomo's proposal to raise the retirement age and offer a 401(k)-type option to new workers in their version of the budget, according to a legislative memo released yesterday.
Seeking balance on public, private-sector pensions
Critics of Gov. Jerry Brown’' pension-reform proposal — one that has now been embraced by Republican lawmakers — say that what the governor is proposing is to force state and local government employees in California to join in a “race to the bottom” that is threatening the retirement security of workers across America.
Governor Renews Call for KPERS Reform, Signs Bills
Topeka - During a news conference this afternoon at the Kansas Capitol, Governor Sam Brownback renewed his call for the Kansas Legislature to address the Kansas Public Employees Retirement System's (KPERS) more than $8 billion shortfall.
Re-Imagining Pensions: Panel 2 -- Hank Kim, presenter
(Video) Hank K. Kim, Executive Director and Counsel of the National Conference on Public Employee Retirement Systems (NCPERS), presents the Secure Choice Pension during Panel 2, Pension Designs to Increase Coverage and Adequacy. For more information on the Secure Choice Pension and the Re-Imagining Pensions conference
Governor Cuomo Says He Can't Negotiate Pension Reform With Public Employee Unions
In a Q&A session with reporters after the cabinet meeting today Governor Andrew Cuomo discussed the state of his push to reform the pension system for public workers. Governor Cuomo was asked about legislators who are demanding he negotiate the reforms with the unions and get them to agree to a plan, but he was adamant that there's nothing to negotiate and the unions are inherently opposed to reform.
Canada's public pension funds are changing the deal-making landscape
They own assets all over the world, including property in Manhattan, utilities in Chile, international airports and the high-speed railway connecting London to the Channel tunnel. They have taken part in six of the top 100 leveraged buy-outs in history. They have won the attention both of Wall Street firms, which consider them rivals, and institutional investors, which aspire to be like them.
DiNapoli: new pension tier offers 'minimal' savings
In case you missed it: Comptroller Thomas DiNapoli, in a sit-down interview with the Empire on Wednesday, laid on his case against the push for a new pension tier.
GAO: Most public pension plans have enough assets to last at least 10 years
Most state and local public retirement systems “currently have assets sufficient to cover their benefit commitments for a decade or more,” despite suffering significant investment losses from the recent economic downturn, according to a Government Accountability Office report released March 2.
New GAO Report Validates Financial Health and Sustainability of Public Pensions
“NCPERS is gratified – but hardly surprised – that the most comprehensive government study of public pension plans to date finds that the vast majority of plans are adequately funded to meet their current obligations and have adopted systemic and operational reforms to ensure their long-term sustainability.
More thanks, less blame
Public employees, particularly those who work in state government, can be excused for feeling a bit under siege lately.
U.S. Pension Assets Gained 16.4% in '11: Wilshire
U.S. public pension funds rose 16 percent in the year ended June 30, narrowing the gap between their assets and liabilities to the lowest level since 2008, according to a report by Wilshire Associates Inc.
San Jose softens pension proposal
San Jose officials Tuesday called for softening a proposed June ballot measure to trim city worker pensions while acknowledging they failed to reach a deal with employee unions to slow growing retirement costs, ensuring a tough election fight that could draw national interest.
Feds fret over underfunded corporate pensions
Federal officials have assumed responsibility for hundreds of troubled pension plans in recent years. Those takeovers could accelerate as baby boomers start to retire, with taxpayers potentially needing to pay tens of billions of dollars to keep the private plans alive.
GOP weighs cost of union battle
With fresh memories of rancor in Wisconsin and other states, Republicans move slowly on right to work.
Dems seek state-run pensions for private workers
Two leading California Democrats introduced legislation Thursday that attempts to provide retirement savings for private-sector workers of modest means, creating a government-run program for private-sector workers whose employers do not offer pensions or 401(k) plans.
NASRA: State, local governments spend 3% on public pension plan funding
Funding for public pension plans accounted for just 3% of state and local government spending in 2009, the most recent data available, according to a report from the National Association of State Retirement Administrators.
Kan. House panel backs away from 401(k)-style plan
A Kansas House committee backed away Monday from a proposal to start a 401(k)-style retirement plan for new teachers and government workers, signaling strong opposition from public employees has pushed legislators to rethink how they'll tackle the state pension system's problems.
KPERS plan would cost additional $10.9B
A plan championed by House and Senate Republicans to fix the Kansas Public Employees Retirement System will cost the state $10.9 billion more than the repair passed last session, individuals against the proposal said Tuesday.
Lawmakers in 9 states target own pension perks
Lawmakers in nine states — Idaho, Iowa, Illinois, Kansas, Kentucky, Minnesota, Missouri, New Jersey and South Carolina— are advancing legislation to scale back their own pensions by closing loopholes and lucrative retirement plans that have let thousands of former lawmakers earn more in retirement than while in office.
Public Hearings Rescheduled to Discuss Important Governmental Plan Guidance
The Internal Revenue Service (IRS) announced that public hearings will be held in Washington, D.C. on advance notice of proposed rule making previously published in the Federal Register on Nov. 8, 2011, regarding governmental plans (view our Nov. 7, 2011, bulletin on the proposed rule making).
CPP Fund Ends Fiscal Third Quarter at $152.8 Billion
The CPP Fund ended the third quarter of its fiscal year on December 31, 2011 at $152.8 billion, up $520 million from $152.3 billion at the end of the second quarter on September 30, 2011.
NCPERS Launches new Retirement Security for All website
NCPERS' new site www.retirementsecurityforall.org focuses on the Secure Choice Pension proposal, which would allow private sector companies and individuals to participate in a state-sponsored pension plan.
Illinois governor urges pension, Medicaid changes
Illinois Governor Pat Quinn on Wednesday said the state must make changes to its pension system and to Medicaid this year, while also insisting that spending cuts alone will not fix the state's budget.
In Defense of Defined-Benefit Pensions
Police officers, teachers, caregivers, and other rank-and-file public servants join Illinois AFL-CIO members to protest the state's pension situation. Despite calls from critics to transition to defined-contribution plans, the way forward for most public-sector defined-benefit plans is through reform, not replacement.
Arizona lawmakers targeting public employee unions
Republican legislators are launching a push against Arizona public employee unions with bills that include a ban on collective bargaining with government workers, a change that would be felt in school districts and local governments.
Walker's Union Law Saves Wisconsin Money as Teachers Quit School
When Wisconsin Governor Scott Walker championed a law restricting collective bargaining for most public employees, he gave school districts cost-cutting tools. He also took away something: $800 million in aid.
NCSL Fiscal Brief: Top Fiscal Issues for 2012 Legislative Sessions
Legislative fiscal directors are keenly attuned to the fiscal pressures confronting their states, which is why NCSL asked these experts to identify the top three fiscal issues their states expect to address in the 2012 legislative sessions.
Why are we surprised by good news?
It turns out that its pension funds performed well enough last year to save the City $90 million in anticipated contributions.
Mayor pins hopes on pension task force report
The $165 million the city plans to send to its three public employee pensions this fiscal year is the consummation of a decades-old contract with the people who put out fires, keep streets safe and pick up the garbage.
Public Pensions Increase Private-Equity Investments
Large public pension plans are pouring more money into private-equity funds, deepening ties between government workers and an industry currently under the harsh glare of U.S. presidential politics. (subscription required)
Bill would force local government employees to fund pensions
All public school teachers and local government employees would have to contribute 5 percent of their pay toward their retirement plan under legislation introduced in the Virginia Senate.
Iowa lawmakers say 'double dipping' not a problem
Lawmakers said a report by the Iowa Public Employee Retirement System should lessen concerns about public workers who "double-dip" by collecting retirement benefits and then taking other government jobs.
Series of bills targets NH public workers' unions
Faced with a Republican majority in both houses of the Legislature, New Hampshire public employee unions are seeing an unprecedented number of anti-union bills.
Rowe Calls for Pension Reform Passage
Candidate for State Rep in the 52nd district, Danielle Rowe, is calling for passage of pension reform legislation, and proposes eliminating legislator pensions.
DiNapoli: Replacing Defined Benefit Pension With 401(K)-Style Plan 'Unacceptable'
State Comptroller Tom DiNapoli today issued an aggressive defense of the current pension system and – without getting into specifics – slammed Gov. Andrew Cuomo's proposal to offer a 401(k)-style defined contribution plan as part of his Tier 6 proposal, calling the change “unacceptable” and “extreme.”
Congress' Pension Math Doesn't Add Up
Last week Sen. Orrin Hatch issued a report noting the rising unfunded liabilities of state and local defined benefit pension plans, and which illustrates the potential impact of those liabilities on the taxpayer, says Steven Malanga, a senior fellow at the Manhattan Institute.
Experts Correct Myths about Public Employee Pensions
In politics and policymaking, the facts aren't always convenient. Such is the case with public employee defined-benefit retirement plans and the policymakers who want to dismantle them.
Pension tensions continue to mount
Retirement benefits for government workers continue to receive scrutiny early in 2012, as budget-cutting once again takes center stage and the presidential campaign gains momentum.
Protecting Public Employee Pensions
As more governors try to force 401 (k) style pension plans on public employees, a group of pension experts say they aren’t the solution for workers who want a secure retirement.
OpEd: Lack of pension makes for wobbly retirement
Media coverage by Crain's and others during the last several years has cast a bright light on Illinois' poorly funded state pensions and the abuse of those systems.
Why Public Pensions Are So Rich
Opinion: Shifting government workers to 401(k)-style plans would offer greater transparency and keep benefits in line with the private economy.
Pension Reform III: Chapter 176
MA: On November 18, 2011 Governor Deval Patrick signed "Pension Reform III" into law, as Chapter 176, Acts of 2011
Quinn signs public pension overhaul
Sweeping reforms are aimed at curbing public pension abuses by union officials revealed by a Tribune/WGN-TV investigation
Christie calls on Democratic legislators to reduce public employee sick pay and vacation benefits
With five days left for the Democratic-controlled Legislature to change the way sick and vacation benefits are provided to public workers, Gov. Chris Christie Wednesday visited the New Brunswick home of Frank and Joan Deiner to discuss the impact what the governor describes as his "Zero Means Zero" proposal would have in delivering property tax relief to New Jerseyans.
ACLU Sues to Stop Michigan Law That Ends Public Employer Same-Sex Partner Benefits
The American Civil Liberties Union, on behalf of four Michigan public employees and their partners, sued Michigan Gov. Richard Snyder (R) today to stop enforcement of the state's new law that prohibits some public entities from offering health coverage to their employees' domestic partners
State unions sue over 2% healthcare cost hike
A coalition of unions that say they represent virtually every state employee in New York is suing the Cuomo administration over its demand that retired members pay 2 percent more into their health insurance plans.
Kansas lawmakers face big issues, but no deficit
For the first time in nearly five years, lawmakers won't face a gaping hole in the state budget when they return to the Kansas Statehouse on Monday.
Will Public Pensions Run Out of Money?
Combined with employee and employer contributions, and considering the many changes that have been made to benefit levels in recent years, assertions of widespread pending pension fund insolvencies are simply unfounded.
Hatch Releases Report Detailing Threat of $4.4 Trillion Public Pension Debt
U.S. Senator Orrin Hatch (R-Utah), Ranking Member of the Senate Finance Committee, today released a comprehensive report , State and Local Government Defined Benefit Pension Plans: The Pension Debt Crisis that Threatens America, outlining the financial risks of the nation's $4.4 trillion public pension debt and its negative impact on the American economy.
Nurses Union Sues Milwaukee County
Milwaukee County illegally reduced pensions for members of a nurses union, the union claims in a class action in Milwaukee County Court.
Merger ends Minneapolis pension feud
Two century-old Minneapolis police and firefighter retirement funds are no more, as is a longstanding legal dispute over their fate.
California pension system not in crisis
Despite those who are all-too-willing to play Chicken Little, the sky is not falling on the California pension system.
Duke's Daily Blotter
The fight for your rights begins, NOW - Your source for up to date Law Enforcement news from across the nation - Illinois pension laws and reform - Union / Labor issues
Small Businesses Look for Better Ways to Provide Pensions
Most small business owners surveyed by the National Conference on Public Employee Retirement Systems (NCPERS) want to provide their employees with some sort of retirement plan.
Opposing view on public pensions: Blame Wall Street
With revenues plummeting during the economic crisis, states and cities across the country face real budget challenges. It is simply wrong, however, to suggest that modest retirement benefits paid to public service retirees are a cause, or even a part, of the budget problems facing governments.
Census Bureau Reports State Government Revenue Up 79 Percent in 2010
Total state government revenue increased to $2.0 trillion in 2010, up 79.0 percent from $1.1 trillion in 2009, resulting mainly from large increases in social insurance trust revenue, according to the latest findings from the U.S. Census Bureau.
Experts: VA is uncompetitive and risks talent drain
When it comes to salaries and benefits, a legislative audit revealed that Virginia's state employees and teachers are not fairing as well as workers in the private sector.
Expand and enhance pensions for all Canadians
The C.D. Howe Institute's claim that federal pensions represent a $227 billion liability must be a surprise to the Chief Actuary of Canada, who stated in his most recent report that the plans are adequately funded and running a surplus.
Michigan Supreme Court won't hear appeal on state employee pay deduction
The Michigan Supreme Court today declined to hear the Snyder administration's appeal of lower court rulings that said requiring state employees to put 3% of their pay checks toward retiree health care is unconstitutional.
KPERS plan still unclear
A pension study commission voted 8-5 last week to recommend that the state move new and non-vested public employees out of the Kansas Public Employees Retirement System and into a defined-contribution plan similar to a 401(k). But it is unclear how it would do that and eliminate KPERS' unfunded liability, estimated at about $8.3 billion through 2033.
McDonnell budget includes $2.2B for retirement system
Virginia Gov. Bob McDonnell's proposal to pump $2.2 billion into the depleted Virginia Retirement System was warmly received by state employees Thursday, but critics fear the move would place an additional burden on cash-strapped localities already struggling with their own fiscal woes.
Pension Panel Focuses on Interest Rates, Defined Contribution Options
Pension experts on a panel at Thursday's Across the Spectrum conference in Columbus homed in on a debate that's been driving the move for retirement-system reform in Ohio: How much do government worker pension funds need to change to remain sustainable?
Public retirement ages come under greater scrutiny
After nearly 40 years in public education, Patrick Godwin spends his retirement days running a horse farm east of Sacramento, Calif., with his daughter.
Washington's misguided pension panic
Many state and local pension funds are still struggling from the financial crisis. Between 2007 and 2008, they recorded a loss of 27 percent. Pension assets have bounced back some – they stood at $2.664 trillion at the end of Q3 2011 – but are still approximately 17 percent below their 2007 high
Workers who qualify for special state pensions
This chart shows which types of state workers can either retire earlier than other workers or get an enhanced pension that is based on a higher percentage of their salary. The chart covers only state-run pension plans and excludes local plans that cover many firefighters.
Michigan Senate OKs state retiree benefit changes
Republicans who control the Michigan Legislature on Wednesday continued efforts to save money on retiree benefit costs related to state employees.
PERA sticks with 8% projection for pension investment return
The board in charge of the $39 billion state pension fund for Colorado workers is sticking with an 8 percent expected rate of return on investments, despite a bleak economy and earnings in the third quarter of negative 8.5 percent.
Small Business Owners Support Idea of Lifelong Pension
According to a survey released by the National Conference on Public Employee Retirement Systems (NCPERS), seven out of 10 small business owners (69%) say they would be interested in adopting a retirement plan for their own businesses with lifelong benefits.
Bill would ban "double dipping" for public employees
Government employees who retire from government jobs and are rehired would have to wait to collect retirement benefits under a bill introduced in the Ohio House this week.
Top beneficiary of Oregon Public Employees Retirement System: Mike Bellotti
The top beneficiary of Oregon's state pension system is former University of Oregon football coach Mike Bellotti, who retired last year to go to work as an ESPN commentator and now collects a state pension of nearly a half million dollars a year, according to data released to The Oregonian Monday by the Oregon Public Employees Retirement System.
PERS is a gift that keeps on giving
One number leapt off the page of Ted Sickinger's report in The Sunday Oregonian on the exploding cost of the Public Employees Retirement System: Higher pension costs facing state agencies over the next two years could equal 60 percent of the $733 million in new taxes that voters will consider in January.
The Search For a Better Way to Retire
Perry's characterization of Social Security as a Ponzi scheme — a term that will be forever linked in the American consciousness to fraudster Bernard Madoff — set off a heated exchange with fellow candidate Mitt Romney during the September debate.
Pensions claims are wrong — and dangerous
Public pensions are a growing financial crisis (Nov. 14) The authors' claim that public pension funds are in great trouble is both incorrect — and very, very dangerous.
Early retirements from Minnesota government boost sick-leave payments
Leaders of a joint committee that reviews state employee contracts say they will take an aggressive stance in looking at all forms of compensation — including sick-time severance — after the number of sick day payouts spiked this year.
NCPERS News Clips
November 8, 2011
News Clips for November 8th, 2011
Brown to Public Employees: Work Until You Drop!
(blog thread) California Gov. Jerry Brown's plan to cut pension costs would force new teachers to work years longer before they could retire and give them substantially smaller pensions.
Mary Williams Walsh, asleep in Rhode Island
In her 2,500 word feature on the pension reform process in Rhode Island, New York Times reporter Mary Williams Walsh seems to have found more color than facts.
JUDGE SOUNDS SKEPTICAL OF PENSION PLAN CHANGES
A judge tasked with deciding the fate of an overhaul of the state's pension plan voiced extreme skepticism about the plan Wednesday, endangering one of the key accomplishments of the last legislative session and threatening to blow a nearly billion-dollar hole in the current budget.
Pay freeze for public employees announced
In an effort to reign-in the state's spending, Gov. Scott Walker's administration introduced a plan that would mostly freeze public employee's pay for the next two years.
Ohio law limiting public employee unions' power faces repeal
Opposition to the Ohio law that limits the power of public employee unions has grown substantially in recent weeks, according to a Quinnipiac University poll released Tuesday, offering a ray of hope to Democrats and their allies in organized labor as the presidential race heats up.
How about a race to reform state pensions?
President Obama has proposed that the federal government provide $35 billion to assist state budgets. It’s a fine idea — provided there's a carrot.
Behind New York's Pension Changes, a Quest for Higher Returns
Mayor Michael R. Bloomberg and New York's comptroller, John C. Liu, should perhaps call their ambitious plan to revamp the city's five public-employee retirement funds “No Pension Plan Left Behind.”
GOP legislators: PERS 'is an irrevocable contract'
The Mississippi Legislature has long acknowledged the fact that the state cannot afford to match the pay scale of the private sector. Yet, Mississippi has been fortunate to recruit and retain quality employees by providing an attractive and very competitive retirement plan.
Brown's pension plan leaves out CalSTRS
Despite two years of lobbying from the teachers' retirement fund, a plan to shore up CalSTRS' finances was missing from Gov. Jerry Brown's pension reform proposal this week.
NCPERS News Clips
November 1, 2011
News Clips for November 1st, 2011
Mary Williams Walsh, asleep in Rhode Island
In her 2,500 word feature on the pension reform process in Rhode Island, New York Times reporter Mary Williams Walsh seems to have found more color than facts.
JUDGE SOUNDS SKEPTICAL OF PENSION PLAN CHANGES
A judge tasked with deciding the fate of an overhaul of the state's pension plan voiced extreme skepticism about the plan Wednesday, endangering one of the key accomplishments of the last legislative session and threatening to blow a nearly billion-dollar hole in the current budget.
Pay freeze for public employees announced
In an effort to reign-in the state's spending, Gov. Scott Walker's administration introduced a plan that would mostly freeze public employee's pay for the next two years.
Ohio law limiting public employee unions' power faces repeal
Opposition to the Ohio law that limits the power of public employee unions has grown substantially in recent weeks, according to a Quinnipiac University poll released Tuesday, offering a ray of hope to Democrats and their allies in organized labor as the presidential race heats up.
How about a race to reform state pensions?
President Obama has proposed that the federal government provide $35 billion to assist state budgets. It’s a fine idea — provided there's a carrot.
Behind New York's Pension Changes, a Quest for Higher Returns
Mayor Michael R. Bloomberg and New York's comptroller, John C. Liu, should perhaps call their ambitious plan to revamp the city's five public-employee retirement funds “No Pension Plan Left Behind.”
GOP legislators: PERS 'is an irrevocable contract'
The Mississippi Legislature has long acknowledged the fact that the state cannot afford to match the pay scale of the private sector. Yet, Mississippi has been fortunate to recruit and retain quality employees by providing an attractive and very competitive retirement plan.
Brown's pension plan leaves out CalSTRS
Despite two years of lobbying from the teachers' retirement fund, a plan to shore up CalSTRS' finances was missing from Gov. Jerry Brown's pension reform proposal this week.
NCPERS News Clips
November 1, 2011
News Clips for November 1st, 2011
Mary Williams Walsh, asleep in Rhode Island
In her 2,500 word feature on the pension reform process in Rhode Island, New York Times reporter Mary Williams Walsh seems to have found more color than facts.
JUDGE SOUNDS SKEPTICAL OF PENSION PLAN CHANGES
A judge tasked with deciding the fate of an overhaul of the state's pension plan voiced extreme skepticism about the plan Wednesday, endangering one of the key accomplishments of the last legislative session and threatening to blow a nearly billion-dollar hole in the current budget.
Pay freeze for public employees announced
In an effort to reign-in the state's spending, Gov. Scott Walker's administration introduced a plan that would mostly freeze public employee's pay for the next two years.
Ohio law limiting public employee unions' power faces repeal
Opposition to the Ohio law that limits the power of public employee unions has grown substantially in recent weeks, according to a Quinnipiac University poll released Tuesday, offering a ray of hope to Democrats and their allies in organized labor as the presidential race heats up.
How about a race to reform state pensions?
President Obama has proposed that the federal government provide $35 billion to assist state budgets. It’s a fine idea — provided there's a carrot.
Behind New York's Pension Changes, a Quest for Higher Returns
Mayor Michael R. Bloomberg and New York's comptroller, John C. Liu, should perhaps call their ambitious plan to revamp the city's five public-employee retirement funds “No Pension Plan Left Behind.”
GOP legislators: PERS 'is an irrevocable contract'
The Mississippi Legislature has long acknowledged the fact that the state cannot afford to match the pay scale of the private sector. Yet, Mississippi has been fortunate to recruit and retain quality employees by providing an attractive and very competitive retirement plan.
Brown's pension plan leaves out CalSTRS
Despite two years of lobbying from the teachers' retirement fund, a plan to shore up CalSTRS' finances was missing from Gov. Jerry Brown's pension reform proposal this week.
NCPERS News Clips
November 1, 2011
News Clips for November 1st, 2011
Mary Williams Walsh, asleep in Rhode Island
In her 2,500 word feature on the pension reform process in Rhode Island, New York Times reporter Mary Williams Walsh seems to have found more color than facts.
JUDGE SOUNDS SKEPTICAL OF PENSION PLAN CHANGES
A judge tasked with deciding the fate of an overhaul of the state's pension plan voiced extreme skepticism about the plan Wednesday, endangering one of the key accomplishments of the last legislative session and threatening to blow a nearly billion-dollar hole in the current budget.
Pay freeze for public employees announced
In an effort to reign-in the state's spending, Gov. Scott Walker's administration introduced a plan that would mostly freeze public employee's pay for the next two years.
Ohio law limiting public employee unions' power faces repeal
Opposition to the Ohio law that limits the power of public employee unions has grown substantially in recent weeks, according to a Quinnipiac University poll released Tuesday, offering a ray of hope to Democrats and their allies in organized labor as the presidential race heats up.
How about a race to reform state pensions?
President Obama has proposed that the federal government provide $35 billion to assist state budgets. It’s a fine idea — provided there's a carrot.
Behind New York's Pension Changes, a Quest for Higher Returns
Mayor Michael R. Bloomberg and New York's comptroller, John C. Liu, should perhaps call their ambitious plan to revamp the city's five public-employee retirement funds “No Pension Plan Left Behind.”
GOP legislators: PERS 'is an irrevocable contract'
The Mississippi Legislature has long acknowledged the fact that the state cannot afford to match the pay scale of the private sector. Yet, Mississippi has been fortunate to recruit and retain quality employees by providing an attractive and very competitive retirement plan.
Brown's pension plan leaves out CalSTRS
Despite two years of lobbying from the teachers' retirement fund, a plan to shore up CalSTRS' finances was missing from Gov. Jerry Brown's pension reform proposal this week.
Union's board gives early OK to NY contract
The executive committee of the state's second-largest public workers union on Monday supported a new tentative contract that could avoid 3,500 layoffs.
State and Local Worker Retirement Income Will Fall Short
A widespread perception is that state-local government workers receive high pension benefits which, combined with Social Security, provide more than adequate retirement income.
Repor Ohio public unions have agreed to over $1 billion in contract concessions since '08
A recently released report (PDF) by Protecting Ohio's Protectors found that since 2008, Ohio public employees have made contract concessions on the state and local level totaling over $1 billion, blunting talking points used by proponents of Senate Bill 5, the union-busting legislation that Ohio voters will have the chance to repeal on Nov. 8.
Canadian pension plans down 5.5% in quarter
Canadian pension assets within the C$340 billion (US$336 billion) RBC Dexia universe fell 5.5% in the quarter ended Sept. 30, putting year-to-date investment performance at -3.2%, according to a survey by RBC Dexia Investor Services.
NYC pension funds are cost-effective: report
Traditional pension plans provide a "better bang for the buck" for New York City public employees, paying the same retirement benefits as those used in the private sector but at a significantly lower cost, according to a report issued by the comptroller on Thursday.
Defending the Secure Choice Pension
The National Conference on Public Employee Retirement Systems defends their proposal for a new type of retirement plan.
Hopes rest on supercommittee's odd couple
Sen. Patty Murray and Rep. Jeb Hensarling seem to have nothing in common — she's a low-key liberal from the Pacific Northwest tasked with heading the reelection efforts of Senate Democrats, he's the tough-talking conservative from Texas who's climbing the ranks of Republican leadership.
Montana's public employee pension problem worsens
The pension system for public employees in Montana is facing a larger shortfall due to market losses and other factors, according to a new report that will be presented to the Montana Public Employees' Retirement Board later this week.
Calpers Plans Front-Running, Personal Stock-Trading Restrictions
The California Public Employees' Retirement System, the largest U.S. public pension fund, is considering a proposal to restrict personal stock trades by employees as a way to avoid conflicts of interest.
Public pension assets plunged in 2009, Census Bureau says
Assets of state and local government pension systems declined 23% in 2009 to $2.46 trillion, down from $3.2 trillion in 2008, according to U.S. Census Bureau statistics released Friday.
Pending pension overhaul could stymie Sarasota Police
If city commissioners approve controversial changes to once-attractive police pensions today, Sarasota would become the first Florida city to move its younger officers under a 401(k)-like plan.
Official: Pension Plan Changes on Hold Pending Union Agreements
Changes to the pension plans for new Riverside County employees will result in sizable savings once they're fully implemented, which is proving to be a challenge because of union resistance, a county official told the Board of Supervisors today.
Pensions Wrestle With Return Rates
Turmoil in Europe, the sluggish economy and low interest rates are intensifying pressure on public pension-fund systems to reduce the annual-performance assumptions they use to determine contributions from taxpayers and employees.
CalSTRS CEO Ehnes wants contribution boost
CalSTRS CEO Jack Ehnes is hoping that California Gov. Jerry Brown will include in his pension reform proposal an increase in the contributions paid by school districts, teachers and the state to eliminate the system's $56 billion unfunded liability and the threat of the system going broke by 2045, confirmed CalSTRS spokesman Ricardo Duran.
Pension plans are an efficient way to save for retirement
A good pension plan is the most efficient way to save for retirement, it has been claimed. According to the Pensions Advisory Service, Brits can benefit from generous tax-relief if they invest in a savings fund for their twilight years.
New York's DiNapoli wants commission to protect DB plans
Thomas P. DiNapoli, comptroller of the state of New York and sole trustee of the $147 billion New York State Common Retirement Fund, Albany, on Tuesday suggested creating a national commission “to talk about ways to maintain existing defined benefit plans.”
Public pensions get a lift from stocks: Census
Public pensions, stung by the financial crisis and government cutbacks, have enjoyed steadily improving investments for nearly two years, mostly due to stocks, U.S. Census data released on Thursday showed.
Public pension plan assets at 3-year high
The 100 largest U.S. public employee retirement systems had a combined $2.8 trillion in assets as of June 30, 1.3% higher than three months earlier and 17.6% higher than a year earlier, the U.S. Census Bureau reported Thursday.
Gov: Pension overhaul won't cut existing benefits
(Rhode Island) -- The architects of Rhode Island's pension overhaul plan said Friday their proposal won't reduce benefits that public workers have already earned, but stressed the need for a "one-time" comprehensive fix rather than piecemeal changes.
Public Sector Overwhelmingly Favors Pension-Style Retirement: NIRS
The study, “Decisions, Decisions: Retirement Plan Choices for Public Employees and Employers,” analyzed seven retirement systems in six states that offer a choice between pension-style plans and 401(k)s. It found that pension-style plans were selected between 75% and 98% of the time.
As State Issues Layoff Notices, Union's Leaders Stand by Vote Against a Contract
Even as Gov. Andrew M. Cuomo sent layoff notices to the first of 3,496 employees he is vowing to let go, leaders of New York's second-largest union of state workers said Wednesday that they did not intend to ask their members to reconsider the proposed contract they had rejected.
Decision to rehire D.C. teachers upheld
An arbitrator's decision to rehire 75 Washington teachers with pay was upheld by the District of Columbia Public Employee Relations Board, officials said.
Colorado Sues State Pension Plan Demanding Recipients' Data
Colorado's public employee pension plan was sued by state Treasurer Walker Stapleton, who asked for a court order directing it to turn over data on its top beneficiaries, according to Attorney General John Suthers.
Pittsburgh avoids state takeover of pensions
The Public Employee Retirement Commission on Monday approved a plan formulated by city council late last year that is designed to increase funding of the pension above a 50 percent threshold required by state law.
On Labor Day, Reasons to Protect Pensions of Public Employees
But as our region's youngsters launch a new year full of promise and anticipation in these scorching late summer days, those of us trusted to teach, protect and serve them are meeting a chilly reception.
Wyoming lawmakers move forward with state retirement system changes
State legislators on Friday agreed to move forward draft legislation to eliminate the state law authorizing cost-of-living increases for 17,000 retired public employees in order to help restore to full health the state's retirement plan.
Don't accept 'What, me worry?' pension views
Kansas City taxpayers are set to spend $1,000 or so to bring pension expert Hank Kim to town on Tuesday. *NCPERS' response will be available on Wednesday, August 31st
Battle brewing over Texas public pensions
Houston's three pension plans "are gobbling up an ever larger share of the city's budget but continue to be underfunded by billions of dollars," King wrote.
Ohio pension plans sue to drop Fannie Mae claims rule
The $75 billion Ohio Public Employees Retirement System and the $66.2 billion Ohio State Teachers' Retirement System, both of Columbus, filed suit against the Federal Housing Finance Agency, conservator and regulator of Fannie Mae and Freddie Mac, according to a complaint filed in U.S. District Court in Washington.
Calpers settles suit with Fitch, not Moody's or S&P
* Lawsuit alleges unreasonably high ratings on SIVs * Fitch will make no payment under settlement-spokesman * Calpers litigation continues against Moody's, S&P
Michigan public employee unions ask if govt. contractors getting same scrutiny during cutbacks
Though Michigan's Republican leadership has focused on reducing the costs associated with state employees — just yesterday passing a law that requires them to pay more for health insurance — the bulk of state spending goes to businesses and so far they are not being asked to share in the sacrifice.
Public employees work to balance budgets with smaller paychecks
(Wisconsin) Today, some public workers across the state will see a smaller paycheck because of an increase in their pension contributions. But most union workers with the City of La Crosse won't start contributing more for their pensions and health insurance until 2012, when their contract is up.
When Will You Retire?
Is this any way to plan for retirement? After a week of huge swings, the Standard & Poor's 500-stock index, a broad gauge of the market, was modestly higher on Friday but still down for the week.
View: States Can Save Money Without Attacking Unions
But recent weeks have offered solid proof that limiting collective-bargaining rights for those workers' unions is not the right approach to bringing the situation under control.
KPERS is best plan for taxpayers, employees
For 50 years, Kansas public employees have contributed to the KPERS fund, never missing or shortchanging a payment. But since 1993, it has been Kansas law for the Legislature to underfund the retirements of Kansas' public employees.
SD Retirement System recovers investment losses
The South Dakota Retirement System ended its latest financial year with $1.6 billion more than it had a year ago thanks to robust investment earnings that will allow a larger increase in pension payments next summer, officials said Monday.
Massachusetts unions ramping up lobbying spending in 2011
Massachusetts unions are on pace to break state records for spending on lobbying, as they try to protect their jobs and flex their collective bargaining muscles in a political environment that's grown increasingly skeptical about organized labor.
Wall Street's ride compounds states' pension fears
Wall Street's volatility has hit state pension funds just as they were beginning to recover from the recession, turning what was merely a troubled forecast into a potentially stormy future for taxpayers who are on the hook for billions in unfunded liabilities for government retirees.
Tenn. officials say state pension plan strong
Tennessee financial officials say they're confident the state's pension plan is in good long-term shape despite the recent Wall Street sell-off and the likelihood of continued stock market volatility.
Public workers union tallying contract vote today
ALBANY — The state's largest public employees union will work through the day to tally close to 30,000 ballots on a trimmed-down contract proposal that freezes pay and imposes furloughs but avoids layoffs, a union spokesman said today.
State Employees' Union Accepts Wage and Benefits Concessions
Members of New York's largest union of state employees, in a begrudging acknowledgment of the increasingly hostile mood toward public workers, have agreed to accept major wage and benefits concessions sought by Gov. Andrew M. Cuomo.
Bondholders Win in Rhode Island
Retired city workers might not be so lucky. Instead of $296,000 in pension checks promised before Central Falls became the second U.S. municipality to seek Chapter 9 protection this year, the retirees could get only $196,000 in payments next month—a 34% cut.
Teachers Union Rejects Pension Commission Proposals
(Maryland) The state teachers union is rejecting most of the final recommendations of the special pension commission, particularly its proposal to shift half the funding of pensions onto county school boards or governments.
Va. lawmakers wrestle with shifting retirement system
State lawmakers continue to debate how to reduce the state's $17.6 billion deficit, including whether to change the benefits of state workers or restructure their pension system.
Will Standard and Poor's Downgrade Force Pension Plans To Sell U.S. Bonds?
The U.S. is no longer rated Triple-A by Standard and Poor's. Many people are speculating that Public and Private Pension Plans will have to sell their U.S. Bonds causing a selloff in the markets. However most pension funds have an Investment Policy Statement which allows for the new AA+ rating on U.S. Bonds.
Wisconsin recall votes grab national spotlight
Across the St. Croix River on the western edge of Wisconsin, a long-brewing political storm will touch down Tuesday. There -- and in several other state Senate districts -- voters will cast ballots in extraordinarily heated political races that have huge implications for Wisconsin's political future.
DPS's Roberts overrides contract, imposes cuts; union pres. vows fight
Wielding power under a new state law to modify union contracts, Detroit Public Schools emergency manager Roy Roberts this morning imposed a 10 percent wage cut on all employees and moved the district to a less costly benefits plan.
How to cut costs in running pensions
The fund management industry is mostly run for profit – for the owners rather than the investors. The owners of fund groups are virtually guaranteed a profit; the investors with them enjoy no such guarantee. (subscription required)
Study: No place DROPs like Philly
Nonuniformed city workers in nearby states and some other major cities can't cash in on a DROP-style pension bonus like they can in Philadelphia, according to a new study of the city's pension benefits.
Double-digit percentage returns for 5 pension funds
Strong equity gains helped boost investment returns for pension plans in Louisiana, California, Oklahoma and Canada in fiscal year 2011, while some experienced additional returns through private equity and real estate positions, according to information released by the plans on Friday
"Unsustainable" Florida Retirement System (Says Gov. Scott) Has Best Gains in 25 Years
Lifted by gains in the stock market, the Florida Retirement System pension plan gained $19 billion in the fiscal year that ended on June 30. The 22 percent gain is the biggest in 25 years, reports the State Board of Administration, and larger than the 14 percent gain from last year. The total value of the pension plan has soared to $128.4 billion.
CalPERS, CalSTRS report big gains in investment returns
California's two statewide retirement systems earned a combined $66 billion on their investments in the past year – but still can't shake criticism that public pensions are a black hole for taxpayers.
21 endangered workplace benefits
Employers are cutting many benefits and perks, from the traditional pension plan to the company picnic
Florida State Board of Administration Posts Performance for 2010-2011
The Florida State Board of Administration released preliminary figures for the fiscal year ending June 30, 2011 showing the FRS Pension Plan posting a return of 22.0 percent, beating its benchmark by 30 basis points and ending the fiscal year with a market value of $128.42 billion.
Laying off public employees harms the private sector, too
Late last week — in response to public sector layoffs driving our unemployment rate near 10 percent — NC GOP Chairman Robin Hayes said he hoped more layoffs were coming for state workers.
Public employees suing state over pension contributions
PHOENIX -- Three unions have filed suit challenging the decision by lawmakers to force more than 210,000 public employees to pay a bigger share of their pension costs.
CalPERS, CalSTRS returns top 20% for year
The nation's two largest public pension systems reported returns topping 20 percent for the year ended June 30, their best in more than a decade as the California funds profited from stocks and private equity
The hidden costs of switching to a cheaper pension plan
Closing traditional pension plans to new hires is an increasingly popular way for employers to curb soaring funding obligations, but it's not a quick fix and can even lead to unexpected costs.
Federal worker coalition: Don't damage our pensions to cut debt
The Federal-Postal Coalition, representing about two dozen organizations of federal employees, is urging President Obama and congressional leaders "to reject proposals that will prove damaging to federal employees in any final agreement over raising our nation's debt ceiling."
100 largest public pension plans' assets reach $2.7 trillion in Q1
The 100 largest public retirement systems in the U.S. had a combined $2.7 trillion in the first quarter of 2011, an increase of 3.6% from the start of 2011 and 10.2% above the first quarter last year, according to a U.S. Census Bureau report.
A Proposal for Drawing a Clearer Picture of Public Pension Finances
The board that writes accounting rules for states and cities plans to issue a proposed solution Friday to one of the hottest disputes in public finance, whether governments are truthfully disclosing the size and condition of their pension funds, and how to fix any deficiencies.
Memphis' public employee unions sue city to block pay cuts
Thirteen public employee unions, representing upwards of 5,000 city of Memphis workers, filed a federal lawsuit this morning to stop the city from implementing a cost-cutting measure that would equal a 4.6 percent pay cut for their members.
GASB unveils public pension plan accounting proposals
Public plans will be required to highlight net unfunded liabilities on their balance sheets and will have less time to expense them under a draft of new GASB rules unveiled Friday.
NJ gov signs bill reining in employee benefits
New Jersey Gov. Chris Christie on Tuesday signed landmark legislation that increases pension and health contributions paid by a half-million teachers, police and other public workers and removes the issue from collective bargaining for four years.
Tax hikes needed for pension funding: study
U.S. state and local governments will need to raise taxes by $1,398 per household every year for the next 30 years if they are to fully fund their pension systems, a study released on Wednesday said.
Firefighters local agrees to pension contributions
Fire captains, engineers, firefighters and paramedics with the Folsom Fire Department began contributing 5 percent of their salary this month toward their retirement under the terms of a new labor contract.
Massachusetts Curbs Bargaining
Heavily Democratic Massachusetts on Friday became the latest state to curtail public workers' collective-bargaining rights, as lawmakers approved a $30.6 billion budget that gives cities and towns greater leeway to force employees to pay more for their health care.
Study finds common traits of solid public pension plans
The most important trait that allowed some public pension plans to weather the financial crisis better than others was full employer contributions made consistently over time, according to a study to be released Wednesday by the National Institute on Retirement Security.
Unions will continue public fight against collective bargaining changes
Many of Wisconsin's public employee groups promise to take their cases to the public instead of the negotiating table, now that they can no longer bargain for anything but wages. The state's limits on collective bargaining took effect yesterday for all state employees, plus local-and-school workers without contract extensions.
Tax hikes needed for pension funding: study
U.S. state and local governments will need to raise taxes by $1,398 per household every year for the next 30 years if they are to fully fund their pension systems, a study released on Wednesday said.
Maryland pension doubling commodity share
Maryland's pension fund plans to hike its commodities exposure to roughly $1.5 billion over the next year, doubling an inflation hedge that will make it one of the nation's bigger investors in the sector.
What's ahead for state pension fund
It's been six months since Steven Grossman took office as Massachusetts treasurer and chairman of the state's Pension Reserves Investment Management board. He has rolled out initiatives he hopes will save fees and improve investment performance at the pension plan.
States Want More in Pension Contributions
Now, in the most definitive sign yet that the era of generous compensation for public-sector employees is ending, workers in more than half the states face the prospect of paying more of their salary toward their pensions.
Unions urge Biden to reject federal pension hike
A coalition of 16 labor organizations representing federal employees sent a letter to Vice President Biden on Thursday, warning they "cannot be expected to stand idly by" in the face of proposals "to link an extension of the debt ceiling with draconian cuts, many again targeting public servants."
Public employees pay more under NH reforms
Public employees will pay more toward their pensions and some will work longer before retiring to spare New Hampshire taxpayers under legislation headed to Gov. John Lynch for signature.
State shutdown would be a leap into unknown
In 19 days, Minnesotans could endure the most wide-reaching government shutdown in state history, with little sense of when it might end.
California asks Teachers to Give up Pensions
It's a trend that's gaining momentum in states across the country, and public workers don't like it. They're being told their prized defined-benefit pensions can no longer be afforded.
Cuomo Urges Broad Limits to N.Y. Public Pensions
Gov. Andrew M. Cuomo, joining a parade of officials from across the country who are seeking to rein in spending by limiting public employees' pensions, proposed Wednesday to broadly limit retirement benefits for new city and state workers in New York.
2011 NCPERS Public Fund Survey
Although media coverage has focused on examples of troubled funds, the data show that retirement funds overall are acting in a thoughtful, responsible and long-term manner. Improved funding, closer management of benefit levels and stronger oversight are important components of the health of public retirement--and of the nation's overall economic health
Court ruling snarls Minneapolis pension deal
A Minnesota Court of Appeals ruling Tuesday left both the city of Minneapolis and some of its pensioners claiming they gained legal ground in a battle with big financial implications for both pension recipients and city property taxpayers.
Mayor Vidal proposes changes to Denver pension plan
Denver city employees would pay more into their pensions beginning in January and new hires wouldn't be eligible to retire until age 60 if a City Council vote passes later this month.
3 Ways Your Social Security Payments Are Already Being Cut
Policy experts have focused on alternative ways of eliminating Social Security's 75-year financing gap, but lost in the debate is the fact that even under current law Social Security will provide less retirement income relative to previous earnings than it does today.
NCPERS News Clips
May 31, 2011
News Clips for May 31, 2011
Manhattan Moment: Pension debate postmortem
On Monday, Economics 21 and the Manhattan Institute hosted a debate on pension accounting and reform, at which I was one of the panelists.
NCPERS News Clips
May 24, 2011
News Clips for May 24th, 2011
Counties may be forced to reveal workers' pension payments
A ruling by a state appeals court orders Sacramento County's pension system to make public the names and pension pay for 8,500 retirees. L.A., Orange, San Diego and San Bernardino counties, among others, may have to follow suit.
NCPERS News Clips
May 17, 2011
News Clips for May 17th, 2011
Tale of two pensions: A city manager and a high school history teacher
When the economy flourished a dozen years ago, communities like Santa Cruz statewide enriched their retirement packages. Now they are paying for it as the nation struggles to get back on its feet after a prolonged recession.
NCPERS News Clips
May 10, 2011
News Clips for May 10th, 2011
Atlanta Police Say "No Way" to Mayor's 401(k)
Over 200 Atlanta police officers jammed into a Committee Room at City Hall last Thursday for a workshop held by the Finance Committee of the City Council.
NCPERS News Clips
May 3, 2011
News Clips May 3rd, 2011
Pension Funds Are Making a Comeback
NEA President Dennis Van Roekel today urged legislators to use the most up-to-date figures on public pension plans before making decisions that could threaten the financial security of educators when they retire.
NCPERS says average funding ratio at 75.
Survey shows public pensions recovering and adequately funded
NCPERS member funding survey shows public pension funds are experiencing a robust recovery from the historic market downturn of 2008-2009 – reporting strong investment returns, growing assets and more than adequate funding levels to meet their obligations.
NCPERS News Clips
April 19, 2011
News Clips for April 19, 2011
Part of Maryland pension hike to go toward balancing state budget
However, about two-thirds of that new revenue is expected to go to the general fund, not the pension fund.
NCPERS News Clips
April 12, 2011
News Clips for April 12,2011
Secret out-of-state donor powering pension reform group
An unknown out-of-state foundation has become a substantial backer of an ambitious nonprofit group that is positioning itself at the center of the state's debate over public pensions.
NCPERS News Clips
April 5, 2011
News Clips for April 5, 2011
Public Employees Should Wield Their Shareholder Power
Like a well-armed, well-trained army standing idly by while the citizens it is supposed to protect get crushed, public pension funds have done little to protect public employees from the well-financed corporate attack on their rights.
NCPERS News Clips
March 29, 2011
News Clips for March 29th, 2011
Local public pension funds in good shape in St. Lucie County
Local plans offered by the county's fire district, Port St. Lucie and Fort Pierce are in good shape, data shows. St. Lucie County, the school district and the sheriff's office are part of the state's Florida Retirement System.
NCPERS News Clips
March 22, 2011
News Clips for March 22, 2011
Atlanta moves toward pension reform
After months of debate, haggling and threats of litigation, Atlanta Mayor Kasim Reed finally unveiled his plans to revamp the city's pension program, which would reduce the annual and long-term costs of the program that he said has been crippling the city.
NCPERS News Clips
March 15, 2011
News Clips for March 15th, 2011
Saving for Retirement
CNBC's Hampton Pearson has the highlights on what some of the nation's top retirement experts have to say about investing for your future.
Minneapolis pension cuts questioned
Appeals court judges question how Minneapolis saved millions of dollars on police, fire payouts.
Gates Says Benefits Costs Hit Schools
Billionaire philanthropist Bill Gates will step into the national debate over state budgets Thursday with a call for states to rethink their health care and pension systems, which he says stifle funding for public schools.
An Overblown 'Crisis' For State Pension Funds
In early 2010, Goldman Sachs announced two blockbuster numbers: profits of $13.4 billion for the prior year and compensation of $16.2 billion -- the equivalent of about $500,000 for each employee at the Wall Street titan.
Why employee pensions aren't bankrupting states
From state legislatures to Congress to tea party rallies, a vocal backlash is rising against what are perceived as too-generous retirement benefits for state and local government workers. However, that widespread perception doesn't match reality.
Reality Check: Public Employees' Contributions To Pensions
MADISON, Wis. -- WISC-TV and Channel 3000 have received a number of e-mails from viewers about an article circulating online that claims state workers pay 100 percent into their pensions, while Gov. Scott Walker and others say they pay nothing.
Many states look to ease pension funding with switch to DC plan
Nearly drowned out by the battle raging in several states over moves to eliminate public employees collective bargaining rights is a push to shift public employees to a defined contribution system.
NCPERS News Clips
March 1, 2011
News Clips for March 1, 2011
Wis. governor refuses to give in to protests
Democrats kept the Wisconsin Assembly up overnight with a droning filibuster in another desperate attempt to block the Republican governor's bold plan to strip public sector workers of nearly all of their bargaining rights.
Md.
NCPERS is The Voice for Public Pensions. And your voice is being heard on national and cable news programs. This morning at approximately 10:30 am EST, NCPERS executive director will appear on Varney & Co. on Fox Business News defending public pensions. Your memberships allows NCPERS to advocate on behalf of public pensions. Thank you for your support.
Unions have to make concessions
The feud between Wisconsin Gov. Scott Walker and that state's employees has all of a sudden become ground zero in the battle between efforts by the GOP to shut down unions as they exist, and those same union workers desperate to hold on to long-fought-for wages and benefits.
ND House defeats closing state pension funds
Teachers and government workers helped defeat two bills in the North Dakota House on Friday that would have closed their pension funds to newly hired employees, although advocates for overhauling the retirement systems promised the debate would continue.
Pension Changes Worry Oklahoma Workers
Oklahoma's firefighters, teachers and other public employees are growing restless as Republican lawmakers who vowed to shrink the size and cost of Oklahoma's government are also taking aim at the state's pension system.
Wisconsin Power Play
Last week, in the face of protest demonstrations against Wisconsin's new union-busting governor, Scott Walker — demonstrations that continued through the weekend, with huge crowds on Saturday — Representative Paul Ryan made an unintentionally apt comparison: “It’s like Cairo has moved to Madison.”
Guest Editorial: Don't Blame California Public Employees! These unsubstantiated claims – repeated endlessly in media – stand reality on its head. Such accusations are part of a systematic campaign by corporate America to mislead taxpayers and scapegoat public employees.
Costs of public pensions targeted in three states Efforts to tackle the costs of public pensions advanced on Tuesday in three Western U.S. states, led by a top Arizona lawmaker unveiling a plan to overhaul his state's pension system.
Public plan disclosure bill in House again A bill was reintroduced in the U.S. House on Wednesday that would require annual reports from state, county and municipal pension plans.
Dealing With Higher Pension Costs Buried deep within President Barack Obama's budget proposal is a plan to stick traditional pension plans with a bill for an additional $16 billion dollars over the next ten years.
Al Lawson: State workers get caught in blame game The Great Recession has hit many communities across this state with some terrible burdens. Abandoned homes, ruined careers, shattered lives all stand in our way of turning this Great Recession into a Greater Recovery.
CT Town Reaches Police Pension Agreement The town of Stratford, Connecticut, has hammered out an agreement with its police union to institute a 401(k) for new hires instead of traditional pensions.
Public plan groups fight back A group of organizations representing state and local governments and public pension plans released a fact sheet that it says aims to set the record straight on the operations and funding of public employee pensions.
Scott wants state workers to help fund their pensions Teachers, police and even legislators could start seeing — for the first time ever — a chunk of their paycheck going into their retirement accounts if Gov. Rick Scott and legislators get their way.
5 Ohio public pension funds make offer to cut benefits Ohio's five public retirement funds came to lawmakers Wednesday with proposals to raise member contributions and cut benefits in an effort to ensure their long-term viability.
Illinois Plan for Pensions Questioned Federal regulators are examining disclosures by Illinois about its unorthodox pension funding method, trying to determine whether the state misled bond investors about the risks.
Public Employee Pension “Reform” or Dismantlement? While the Governor and Legislative Democrats grapple with the state's fiscal crisis by proposing severe budget cuts matched with tax extensions, our Republican colleagues remain on the sidelines. Recently, however, they made their first demand – destruction of pension plans of public employees.
Don't Blame Teachers for Expecting to Get a Pension WSJ prints NCPERS response to its Jan. 10 Opinion article attacking teacher pensions. Click on the link below and post comments supporting pensions for teachers and all public employees.
Digging out pension plans Can Governor Deval Patrick's new retirement plan for public employees really plug a $20 billion hole in the state's pension plans?
Massachusetts governor proposes pension reform The retirement age for Massachusetts state workers would be raised to 67 for new state employees and incentives for early retirement would be eliminated as part of a pension reform package announced by Gov. Deval Patrick.
New pension bill is laudable, but doesn't go far enough The multifaceted pension-reform plan announced last week by Governor Patrick, Senate President Therese Murray, and House Speaker Robert DeLeo would achieve much of what's possible, under current political and legal constraints, to contain potentially staggering public-employee retirement costs.
Public employees to defend benefits Public employees in Nevada are keenly aware of a movement to further trim costs associated with their retirement benefits, and they're ready to push back.
Teacher pay freeze plan: Is it unfair or overdue? A GOP-sponsored proposal to freeze pay for two years comes after years of budget cuts, layoffs and school closings - and leaves many asking what more could be cut.
Illinois Lawmakers Approve Income Tax Increase and Pension Bonds Illinois lawmakers narrowly approved an income tax increase to ease the state's fiscal crisis and $3.7 billion of bonding to cover pension payments, but rejected other key pieces of a fiscal bailout plan including a $1 cigarette tax hike and an $8.75 billion borrowing to pay off mounting bills.
New Jersey Pension Fund Gains as Christie Seeks Fixes New Jersey's pension fund has gained 8.7 percent so far this fiscal year, as Governor Chris Christie calls on lawmakers to overhaul the system to whittle down a $53.9 billion deficit.
Fitch Analysis of Pension Funding On January 7, Fitch Ratings released a special report entitled U.S. State and Local Government Pensions: One Size Does Not Fit All. The report states that making blanket conclusions about public pensions are problematic and evaluations of public pensions should be done on an individual basis. It concludes that the vast majority of plans will meet its obligations and that it is unrealistic to use Treasuries as the discount rate.
Pittsburgh Dodges One Pension Bullet, but Problems Remain Pittsburgh avoided a state takeover of its severely underfunded pension plan when the city council adopted a last-minute bailout at the end of December, but the Steel City's yawning obligations to its workers remain a hurdle to its fiscal health.
Ways for Local Governments to Protect Pension Plans The experience of Prichard, Ala., highlights the need for a new approach that establishes fiscal discipline, provides predictable liabilities for governments, and prioritizes income security for workers.
The Shameful Attack on Public Employees And in subsequent years millions of public employees across the nation have benefited from the job protections they've earned. But now the right is going after public employees.
Gingrich seeks bill allowing state bankruptcy to avert bailouts Former House Speaker and possible GOP presidential contender Newt Gingrich is pushing for federal legislation giving financially strapped states the right to file for bankruptcy and renege on pension and other benefit promises made to state employees.
AP survey: ND lawmakers ready for pension shakeup North Dakota lawmakers are willing to consider excluding newly hired teachers and government workers from state pensions, and putting them instead into retirement savings plans that do not have guaranteed benefits, an Associated Press survey shows.
Lawmakers will face pay, pension issues (Montana) Members of the 2011 Legislature will be asked to approve a pay increase agreed to by the Schweitzer administration and three major unions, to consider capping state employees' pay and benefits and to make some adjustments in state pension plans.
Pittsburgh Council Passes Tax Dedication for Pensions Pittsburgh's City Council voted 7-2 for a plan to dedicate $13 million a year in parking taxes to its pension fund to avoid a state takeover that threatens to double the city's payments into the system by 2015.
Leave the baby boomers alone In response to Robert Samuelson's Sunday column, "Don't spare the boomers from budget pain": In the famous words of Margaret Thatcher, "The problem with socialism is that, sooner or later, you run out of other people's money."
State to tackle pension reform Former Ormond Beach Mayor Fred Costello made no secret of his hope to reform the state pension plan when he ran for the Florida House, and he was challenged for it -- facing a police union official in the Republican primary and a former school district official in the November general election.
Alabama Town's Failed Pension Is a Warning This struggling small city on the outskirts of Mobile was warned for years that if it did nothing, its pension fund would run out of money by 2009. Right on schedule, its fund ran dry.
For Maryland taxpayers and state workers, pension tension Time may be running out for Maryland's cash-strapped state pension plans. Having spent most of the past 10 years under-contributing to the plans that cover more than 100,000 former employees, the state faces unfunded pension liabilities of more than $18 billion over 25 years and unfunded health-care obligations projected at $15 billion.
State Budgets: Day of Reckoning Steve Kroft reports on the precarious financial conditions many states are facing and what they're doing about it.
Heightening of pension tension The nation's menu of crises caused by governmental malpractice may soon include states coming to Congress as mendicants, seeking relief from the consequences of their choices. Congress should forestall this by passing a bill with a bland title but explosive potential.
NJ police union says it's fighting pension cuts, members say not hard enough Ron Dixon gets poker-faced when asked how the state police union plans to keep Gov. Christie from crippling New Jersey's Police and Firefighters Retirement System. The union doesn't want to arm “those who seek to damage our pension and benefits” before the next round of proposed cuts, he says.
San Jose City Council selects financial experts for pension boards San Jose Mayor Chuck Reed's longtime goal to appoint outside finance experts to the two boards that oversee city pension funds was mostly completed Thursday after the City Council named seven candidates to open seats.
Public Employee Pension Debt Explodes What taxpayers and public employees don't know about public pension transparency can and does harm them. Economists are beginning to sound the alarm that public- sector pension debt is untenable.
·Battle lines form over public plan disclosure Business and taxpayer groups and representatives of local governments and unions are squaring off over what is expected be a major legislative brawl next year concerning a bill that could force public pension plans to disclose their finances to the U.S. Department of Treasury.
·Pension law leaves taxpayers with $5B annual cost Newly enacted structural changes to Pennsylvania's pension plans for state government workers and public school employees will still leave taxpayers on the hook for billions of dollars in average annual payments over the next decade, according to an Associated Press analysis.
·Pension reform bill leaves challenges for school districts Area school leaders say they still face major budget challenges, even though the General Assembly and Gov. Rendell approved recent changes to Pennsylvania's pension plans for school district employees and government workers.
·Public employees may have to pay full pension costs Virginia legislators are preparing to take a fresh look at whether to require state and local government employees to pay their full share of pension costs
·PERS study picks apart suggested Ore. pension cuts A new study suggests that cuts to state worker pension plans recommended by outgoing Gov. Ted Kulongoski's Reset Cabinet could sharply reduce pay and benefits, even though it might save more than half a billion dollars.
·State is responsible for its pension mess Marylanders should know that the state has already reaped billions during the past decade from its failure to meet its funding obligations to active and retired employees and state teachers.
W.Va. public investments are continuing to rebound West Virginia lawmakers should not have to worry about offsetting public investment losses when they craft a budget next year, according to state officials and the latest available figures.
Tough decisions helped IPERS, actuary reports State officials were told Thursday there's light at the end of the tunnel for Iowa's largest public pension fund, which was described only a year ago as a potential disaster.
Cleaning up NJ's pension mess: State must contribute as well Not long after taking office in January, Gov. Chris Christie set his sights on changing the course of New Jersey's titanic pension system for government workers before it crashes into the iceberg.
State seeks $4 billion fix for its pension fund A nearly $4 billion hole in the state pension system has prompted Treasurer Jim McIntire to propose a state constitutional amendment that would force the Legislature to begin fixing the problem in 2015, before it becomes much worse.
According to a new survey partially funded by NCPERS, 50 percent of the nations' cities, counties and townships expect less revenue in 2011, 19 percent expect fewer employees, and about 26 expect increased consolidation of local services. With shrinking budgets and fewer staff, local officials are taking several approaches to contain long-term costs associated with employee and retiree health care.
The Health and OPEB Funding Strategies: 2010 National Survey of Local Governments report is based on responses from more than 1,500 city, county, township and special district governments across the country. The study was conducted by Cobalt Community Research, a leading nonprofit research organization based in Lansing, Michigan.
To view the results of the survey, please click here.
Citing deficit, Obama freezing federal worker pay President Barack Obama on Monday called for freezing the pay of 2 million federal employees, saying the move is the first of many difficult decisions that must be made to slash the nation's mounting deficits.
Pa. governor signs public pension, recycling bills Pennsylvania Gov. Ed Rendell has signed bills that reduce pension benefits for newly hired state and public-school employees and require the establishment of recycling programs for electronic devices, his office said Wednesday.
Planning for pensions A Stanford economist's report on the funding of municipal California retirement plans could be overly pessimistic, but it still shows the need for reform of the system.
State's pension gap looms large (New Jersey) State leaders began to debate again this week how much money they should put into New Jersey's beleaguered pension system.
Defined pension plan rebirth has potential Economist Jack Mintz from the University of Calgary got crowds buzzing at the western regional conference of the Canadian Pension and Benefits Institute, when he predicted that the defined benefit pension plan could make a comeback.
House speaker unveils sweeping plans Arizona House Speaker Kirk Adams late Friday laid out a sweeping proposal for changes to Arizona's public pensions.
More states take action on pension liabilities, Pew says Nineteen states took steps to reduce pension liabilities in the first 10 months of this year, either by reducing benefits or increasing employee contribution requirements, said a brief issued Wednesday by the Pew Center on the States.
Miss. public pension is secure In response to syndicated columnist Bill Crawford's Nov. 3 article "Miss. retirement plan woes grow" and to The Economist's October 14 article "American states' pension funds: A gold-plated burden" and other reports prophesying the fiduciary doomsday of Mississippi's public pension system, I want to assure our members and the taxpayers that the Public Employees' Retirement System of Mississippi is financially secure.
State, local government workers face higher pension premiums (Nevada) The 103,000 state and local government workers and school teachers who are members of the state's pension fund will be hit with higher monthly premiums starting next July.
Details emerge in Ventura, union negotiations impasse New details emerged this week in the labor dispute between the Ventura City Council and union employees, who again filled the council chambers Monday to oppose paying a share of rising retirement costs.
Election adds pressure to change public employee pensions WASHINGTON • Six newly elected governors are looking favorably at some form of 401(k)-style retirement plan for public-sector employees, adding to the momentum building nationally for a shift away from traditional guaranteed pensions.
Money-saving pension reform killed SAN FRANCISCO — City and county workers will not have to contribute any more money to their pensions or health care after voters rejected the controversial Proposition B.
State Street Eyes More Purchases In Europe Amid Pension Shift LONDON (Dow Jones)--State Street Corp. (STT) could make further acquisitions in Europe, President and Chief Executive Jay Hooley said Tuesday, as the custody bank and asset manager looks to tap into shifts in the way people in the region save for retirement. (subscription required)
Connecticut panel makes recommendations Raising state employees' retirement age and increasing their contributions are among the recommendations of a special commission examining Connecticut's underfunded pension and health plans.
Pension Plans in California Underfunded by $326 Billion: Study Pension plans in California face a shortfall of more than $326 billion, taking into account deficits for the state teachers' and public employee pension programs, according to a study published in October by the Foundation for Educational Choice.
Pension measures grab California voters' interest San Francisco voters aren't the only ones who will take up an incredibly contentious pension measure on election day. From the beach towns of Carlsbad and Pacific Grove to agricultural Bakersfield, from Redding up north to Riverside down south, Californians will decide about a dozen local pension initiatives - more than the state's voters have ever faced at once.
Official details state takeover of city pensions Pittsburgh's pension problems are "very, very serious," the head of the Pennsylvania Municipal Retirement System said today, as he spoke to City Council about a possible takeover of its pension fund.
Report questions pension health of Philly, other cities Philadelphia and other cities are going broke while masking their pension crises with unrealistic accounting practices, economists at Northwestern University and the University of Rochester wrote in a report released Tuesday.
Ehrlich stings unions with pension plan Former Maryland Gov. Bob Ehrlich clams up when asked how he would pay the for the state's $1 billion budget deficit -- but when it comes to Maryland's $18 billion in unfunded pension benefits, the Republican gubernatorial candidate says he's got a plan: 401(k) plans.
Fact? or Fiction Misleading headlines are becoming more fantastic with each day we edge closer to the November elections. Candidates, their parties, and the press are in a race to see who can be as creative with the truth as possible, in hopes of swaying momentum in their favor.
What OTC Drug Reimbursement Changes Lie Ahead? Employer-sponsored health plans will be dealing with some changes relating to medicine reimbursements next year under the new health reform bill.
SD City Council Votes To Contribute More To Their Own Pension Plans San Diego City Council members have agreed to contribute more to their own pension plans. It’s the first condition the city has to meet before a half-cent sales tax increase on the November ballot could take effect
Government workers' pensions no longer sacred Faced with deep budget deficits and overextended pension plans, state and local leaders are increasingly looking to trim the lucrative retirement benefits that have long been associated with government employment.
More Parents Giving Up Retirement For Kids College Fund A new study was recently released, and it shows a surprising number of parents have begun to dip into their retirement funds in order to pay for their children to go to college.
Board at Center of Pension Dispute One is mayor of Highland Park, Ill. Another is assistant municipal manager of Mount Lebanon, Pa., a Pittsburgh suburb. Another runs Tennessee's state-government accounting system. (subscription required)
State panel puts brakes on shift in pension plan A state budget panel has asked for more time to review a controversial proposal to create a state-run company to devote more pension money to more profitable but higher-risk investments
New Jersey Sells $669M In Muni Debt At Attractive Yields New Jersey sold $669 million in general obligation bonds Thursday, a week after Moody's Investors Service dropped its ratings outlook to negative, citing its pension underfunding and budget woes. (subscription required)
How to Clean Up the Muni Bond Market Arthur Levitt and Lynn E. Turner's solutions to defaulting bonds, unfunded liabilities, and fraudulent investment information
Illinois Leads Underfunded U.S. Pensions To rank the municipal pension funding levels for the 50 U.S. states, Puerto Rico and Washington, D.C., the Bloomberg Municipal Data Team and the Municipal Fundamentals Team collected and supplemented data from The Comprehensive Annual Financial Reports, a set of government financial statements.
Debate Over Government Pension Plans Heats Up After losing billions during the economic crisis, bloated benefits of state and local government-employee pension plans across America have been thrust into the spotlight as officials consider the tough reforms necessary to ensure their funds' continued existence.
Why a 401(k)-Style Retirement Plan Won't Save the City Money (San Diego, CA) The problem is that such proposals misdiagnose the root cause of San Diego's ballooning pension payment and greatly overestimate the savings from switching to a defined-contribution system.
French Unions Take To The Street Over Pension Plans French workers staged a nationwide one-day strike and rallies Thursday to protest government plans to increase the pension age and challenge a key plank of President Nicolas Sarkozy's economic policy. (subscription required)
PERS board approves employer rate increases (Oregon) The bad news was passed along quickly Friday when the board of the Oregon Public Employees Retirement System approved higher payroll-contribution rates for state agencies, local governments and school districts for the next two-year budget cycle.
Case Tests Retirees' Pension Cuts A Minnesota court on Wednesday will consider whether the state can curtail pension benefits for current retirees from state jobs, in a case that could affect struggling public pension funds nationwide.
Report: U.S. households $6.6 trillion short for retirement U.S. households are about $6.6 trillion short of having enough savings today to maintain their living standards in retirement, and pension freezes and 401(k) plan investment losses could make that deficit far worse,
'Death Spiral' Besets State Pensions as Benefits Grow U.S. state pensions such as Illinois, Kansas and New Jersey are in a "death spiral," with assets at many insufficient to cover benefits, payouts consuming a growing portion of resources and costs rising twice as fast as investment gains.
France Makes Crucial Move to Raise Age of Retirement MADRID (AP) -- French workers and Spanish royalty became the latest to feel the bite of Europe's debt crisis on Wednesday as officials said the king and queen would have to tighten their belts and France's National Assembly voted to delay retirement until the ripe old age of 62.
How Pensions Can Get Out of the Red Part of the problem is that pension funds need significant new financing to cover the growing number of retirees. But the real issue is the lack of incentive to improve pension performance. What we need, then, is a federal program that combines stimulus with serious fund reform.
A look at state pension changes Highlights of changes to state government pension plans that affect current retirees and employees, and how much unfunded pension and non-pension retirement liabilities -- such as retiree health care costs -- each state faced as of 2008, according to a study by the Pew Center on the States.
Public employees feeling pinch of benefit reductions TRENTON, N.J. -- William Liberty began as a trash collector in Lindenwold 37 years ago and worked his way up to public works supervisor. Until recently, he figured he would hold on to the job until he turned 65. But last week, at 62, he was preparing his retirement papers, joining a rush among New Jersey public employees.
Pension Gaps Loom Larger Many of America's largest pension funds are sticking to expectations of fat returns on their investments even after a decade of paltry gains, which could leave U.S. retirement plans facing an even deeper funding hole and taxpayers on the hook for huge additional contributions.
New Studies Expose GOP Lies about Public Employees Just one of many recent analyses debunking Republican charges about government workers and their unions, EPI found that "on average, state and local government workers are compensated 3.75% less than workers in the private sector."
NCPERS Calls on Pension Funds to Comment on Proposed Changes to Accounting and Financial Reporting Standards NCPERS has developed an online tool to help our members draft individualized written responses to the Government Accounting Standards Board’s (GASB) Preliminary Views (PV) on possible changes to pension accounting and financial reporting standards. GASB’s PV proposes a number of significant changes that if adopted would negatively impact public pensions.
Pension Plans Alter Strategies In Reaction To Lessons Of Downturn Many pension plans will further pare their exposure to stocks while boosting passive and alternatives investments after learning in the downturn that they need more downside protection and better risk management, a new survey found. (Subscription required)
Christie Said to Propose New Jersey Pension Benefits Rollback Next Week New Jersey Governor Chris Christie will unveil legislation that aims to trim a $46 billion pension deficit by scaling back benefits and suspending cost-of-living increases, said a person familiar with details of the proposals.
5 Doomsday Scenarios for the U.S. Economy To see where this re-recession might begin, my colleague Dan Indiviglio and I imagined five financial earthquakes, each with a single epicenter: housing, consumers, toxic assets, Europe, and the debt.
America's Retirement Problem: Should We Ditch 401(k) Plans? Over the past decades, defined-benefit plans have been replaced, for the most part, by defined-contribution plans like 401(k) plans. But the majority of Americans with access to 401(k) plans are not saving the maximum amount they can, and in many cases are not saving at all.
New York's DiNapoli Cuts Pension Investment Outlook, Raises Contributions New York's $124.8 billion pension fund, the nation's third-largest, reduced the assumed rate of return on its investments to 7.5 percent from 8 percent as it recovers from market losses, Comptroller Thomas DiNapoli said.
Council president proposes police, fire pension changes Baltimore City Council President Bernard C. "Jack" Young said Tuesday he wants to revisit changes to the police and fire pension plan that have drawn fervent opposition from public safety union members.
Miami Cops Sue To Block Pay Cuts Miami Cops went to court Wednesday afternoon looking to block deep pay and benefit cuts imposed by city commissioners.
Paul Weber: Public employee pension 'reforms' recipe for disaster Recently many opportunistic politicians around the state have been on rant against public employee pensions and calling for draconian "reform." A more accurate description of would be: "It's about time public employees joined the race to the bottom."
Missouri pension fund returns 14.3 percent on investments A public pension fund that provides retirement, disability and survivor benefits for state employees, retirees and their families in Missouri generated a return of 14.3 percent for the fiscal year ended June 30, 2010.
Public Pensions and Our Fiscal Future Few Californians in the private sector have $1 million in savings, but that's effectively the retirement account they guarantee to many government employees.
Large Employers Predicting 2011 8.9% Health Cost Spike A new National Business Group on Health (NBGH) survey finds that large-sized employers are looking for an average 8.9% health care cost hike for 2011, up from an average 7% this year.
Large Employers Predicting 2011 8.9% Health Cost Spike A new National Business Group on Health (NBGH) survey finds that large-sized employers are looking for an average 8.9% health care cost hike for 2011, up from an average 7% this year.
Unfunded Public Pensions--the Next Quagmire A federal bailout would cost trillions and prevent necessary reforms. But there are several ways states can rationalize their workers' retirement benefits. (subscription required)
SEC's New Jersey Fraud Case Seen as Harbinger in Muni Crackdown The Securities and Exchange Commission's fraud case against New Jersey may presage a wave of lawsuits seeking to crack down on misdeeds by public officials who raise money in the $2.8 trillion municipal bond market.
Viewpoints: Don't Blame Pension Woes on Unions Recent discussions of public employee pensions give the impression that funding problems are unique to California and that the cause is overly generous benefits negotiated by the state's public employee unions. But what do the facts show?
Pension Fraud in New Jersey Puts Focus on Illinois The federal government's crackdown on the State of New Jersey this week for misrepresenting the condition of its pension funds raises a question: Who else might have pension numbers that could draw regulatory fire?
More than half of state pensions could disappear As many as 31 states could see their pension plan assets dry up by 2030, this according to a new study from the Kellogg School of Management at Northwestern University.
Longevity Concerns High Among Retirement Savers Half of employees (52%) believe they are behind in their retirement savings and a nearly equal number of workers (53%) are very concerned about outliving their retirement money, according to MetLife's 8th Annual Employee Benefits Trends Study.
Pension check may not be in the mail Illinois public employees who think the state constitution guarantees that they'll get all their pension benefits may have another think coming.
Wayne County retirees cheer as pensions stay intact Wayne County Executive Robert Ficano says sinking tax revenues and a $266-million deficit mean the county can't afford to keep giving its retirees a 13th pension check each year.
'Overpaid' Pensions Being Seized Mr. Yore, 73 years old, received a letter earlier this year saying the pension he had been receiving in retirement was too large. The pension would be cut by two-thirds, to $967 a month, the letter said--and he had to repay $100,000.
Pensions and the Public Thanks to years of overoptimistic economic projections and the habit of politicians to prefer future cost increases to current cost increases, public pension funds are pretty seriously underfunded right now. That means taxpayers are going to have to come up with many billions of additional dollars to fund pensions at the levels that have been promised to public workers.
10 city pensions top $79,000 Warwick is budgeted to spend roughly $22.2 million of the taxpayers' money for retiree pensions this fiscal year - about $1.5 million more than last year. The city's top 10 highest pension earners will all take home more than $79,000.
Contributions hit retirement more than markets The drop in voluntary contributions since 2007 has had a greater impact on the overall adequacy of retirement income levels than the global financial crisis, according to Access Economics head of macroeconomic group Chris Richardson.
U.S. retirement assets up 2.6% in Q1, ICI says U.S. retirement assets totaled $16.494 trillion as of March 31, up 2.6% from the end of the 2009, according to an Investment Company Institute report issued Wednesday.
Pa.: 28 pension plans distressed A state report released Monday shows that more than half of the municipal pension plans within Luzerne County are financially distressed.
San Joaquin County pension fund gains $176 million The San Joaquin County pension fund bounced back in 2009, gaining about $176 million, but the rebound won't erase the damage caused when investments plummeted $668 million in 2008 during the worst period of a financial crisis that spanned the globe.
Push for changes to Sonoma County's pension system Depending on one's viewpoint, Sonoma County's pension system is doomed or it's being guided through the toughest investment market since the Great Depression.
Bloomberg appoints New York City's first pension adviser Ranji H. Nagaswami on Monday was appointed by New York City Mayor Michael R. Bloomberg to the newly created job of adviser to the mayor's trustees on the boards of five New York City pension funds that had combined assets of $103.8 billion as of May 31.
Maine Giving Social Security Another Look Just as workers in the private sector participate in Social Security in addition to any pension plan at their companies, most states put their workers in the federal program along with providing a state pension.
Poll: Faith in Social Security system tanking Battered by high unemployment and record home foreclosures, most Americans seem to have lost faith in another fundamental part of their personal finances: Social Security.
New York City Pensions Consider First Hedge-Fund Investments New York City's pensions funds for police officers, firefighters and civil employees are seeking proposals from hedge fund consultants as they weigh whether to invest in the loosely regulated investment pools.
OECD makes case for reviving defined benefit plans Regulations on defined benefit pension funding should be reformed to stem the flow from them to defined contribution plans, according to a new OECD paper.
Public plans cutting money management fees U.S. public pension fund officials are increasingly asking their external investment managers for fee concessions as part of an effort to cut operating costs.
Pension envy in California We must create a fiscally sustainable pension system that offers adequate retirement security to public and private workers alike.
Taxpayers Don't Need $2.9 Trillion Pension Overhaul: Joe Mysak The economic recovery is fragile enough. Should we force public pension funds to cut their investment return assumptions in half in order to comply with economic theory? The move may cost taxpayers $2.9 trillion.
Deficits in US pension plans approach record high The deficit in pension plans sponsored by S&P1500 companies reached $451 billion at the end of June, just $1 billion short of the previous record high set in mid-January 2009, according to new figures from Mercer .
Simi Valley employees agree to pension contribution The Simi Valley City Council has approved a three-year labor contract covering 268 city employees who agreed to a 3 percent cut in their total compensation package that the city estimates will save about $2 million.
Focusing on Public Pension Plans The Government Accounting Standards Board (GASB) invited public comment on proposed revisions to its accounting standard for public retirement programs.
Nurses win on one big contract issue -- their pension plan St. Paul, Minn. -- Along with staffing, pension contributions and benefits were at the heart of the stalled labor negotiations between 14 Twin Cities hospitals and more than 12,000 nurses.
States seek to reduce pension-plan risk SALT LAKE CITY -- A Utah state senator says his push to move state workers into a 401(k)-type pension plan is the result of a new reality for cash-strapped U.S. states.
Pensions weigh options from BP spill The exasperation with BP felt by residents of the Gulf states is spreading to shareholders --and some are taking the oil giant to court.
An unavoidable clash AUSTERITY in southern Europe has provoked strident opposition from government employees, who are protesting against pay and pension cuts.
Lawmakers Raid Pension Fund When Gov. Robert F. McDonnell inked Virginia's new two-year budget, state lawmakers will have deferred $620 million in the usual payments to the retirement system, while promising to repay the money over ten years- with interest.
Diageo Uses Scotch to Plug Gap in Pension Plan LONDON- Diageo, the maker of Johnnie Walker whiskey, found an innovative way to plug a gaping deficit in its pension plan: put aside 2 million barrels of maturing whiskey from its distilleries in Scotland.
State Workers, Long Resistant, Accept Cuts in Pension Benefits Some public-sector unions, trying to avoid furloughs and layoffs, are accepting less-generous pension benefits for current workers and retirees, often for the first time in years. (subscription required)
State worker retirement system changes cause concern Richmond, Va. -- Virginia's retirement system for state and local government employees has become a train on two tracks, with everyone hoping the engine has enough fuel for the long ride.
Public plans take knife to benefits At least 24 public pension funds have cut benefits this year as fallout from the financial crisis continues to affect their plans' stability.
Public employees' pension fund proposes changes HELENA - The largest state and local government employees' pension fund has proposed some changes to turn around and stabilize its finances after its investment assets lost a fourth of their value during the market downturn in 2008 and 2009.
Bad News for Public Pension Funds and Taxpayers The Government Accounting Standards Board (GASB) is preparing to release a preliminary view of proposed pension accounting reforms, which could increase the need for higher contributions to finance public pension funds.
President Signs Bill Providing Temporary Funding Relief for Pension Plans President Barack Obama signed HR 3962, the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, on Friday. The bill includes the so-called "doc fix," increasing Medicare reimbursement to physicians by 2.2% through the end of November, in place of a scheduled 21% cut.
New York pension fund to sue BP for investment losses New York state's pension fund plans to sue BP Plc to recover losses from the drop in the company's stock price following the worst oil spill in U.S. history, state Comptroller Thomas DiNapoli said on Wednesday.
Search pension data for public employees across New York State A policy research group has posted a searchable database of the annual pensions for 342,543 state, county and city employees -- including local governments across Central New York -- on www.SeeThroughNY.net.
Pension Bombs Need to Be Unearthed Investing in municipal bonds often means tiptoeing though a pension minefield. And spotting the sometimes camouflaged explosives is no easy task. (subscription required)
Calpers Panel Endorses 18% Hike To California's Contribution California would pay $3.9 billion for state-employee pensions next year, up 18% from the just-ending fiscal year, under a recommendation from a board committee at the California Public Employees' Retirement System.
Pa. House OKs new limits on public-sector pensions The House on Tuesday voted for new rules for Pennsylvania's two large government pension plans that would reduce the size of a looming jump in costs to taxpayers and cut some benefits for new hires.
Pension initiative could put voters in charge of deputies' retirement plans (Riverside County, California)-- Managing Riverside County's $6 billion in pension liabilities will be challenging in the years ahead, and a union proposal to put voters in charge of sheriff's deputies' retirement plans would only complicate the problem, county officials said today.
Schwarzenegger, some unions cut pension deal (California) Gov. Arnold Schwarzenegger cut a deal with four public employee unions Wednesday on new labor contracts that will reduce state contributions to employee pensions and scale back worker pay, Capitol Weekly reports.
Senate passes DB funding relief The Senate on Friday unanimously approved legislation that includes funding relief for defined benefit pension plans.
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)
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.
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.
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.
Blackstone Tries to Assuage NYC Pensions After Wien's Comments Blackstone Group LP, the world's biggest private-equity firm, is trying to mend relations with New York City's public pension funds after strategist Byron Wien said retiree benefits were "too generous."
US DB plans funding improves The defined benefit (DB) plans of US companies have improved their funding from 2008 lows, but still showed a funding gap of US$252bn at March 31 2010, a report from Mercer revealed.
Massachusetts plans outperform PRIM Massachusetts' public employee pension plans that invest independently of the state's Pension Reserves Investment Management Board returned a median 20.3% in 2009, 2.8 percentage points above the return of MassPRIM for the same time period
N.Y. Pension Gains 26%, Most Since 2004; Assets Shift The New York State Common Retirement Fund, the third-largest U.S. public pension plan, reported a 26 percent investment gain in fiscal 2010, the most in six years.
Cook County to sell $80 million in pension notes Cook County, Ill., plans to issue $80 million in pension obligation notes to finance part of its contribution to the $6 billion Cook County Annuity & Benefit Fund, Chicago. (subscription required)
S&P 1500 plans' funding ratio falls to 79% Falling equity values and declining interest rates dropped the funding ratio of S&P 1500 companies' pension plans five percentage points to 79% for the two months ended May 31, according to a Mercer report. (subscription required)
25 IS THE NEW 20 - New pension bills seeks 25 years of service for fire and police (Baltimore, MD) A new pension overhaul bill intended to jump start stalled negotiations between unions representing fire and police officers and the city will raise the years of service required for retirement from 20 years to 25 years for both groups of public safety personnel.
CalPERS considers annual asset allocations CalPERS could have a new asset allocation every year instead of the current policy of every three years, Joe Dear, the system's chief investment officer, said in an interview
Public pension funds could be in for big shock The Government Accounting Standards Board is preparing to release a document that could send shivers through public pension systems and the taxpayers who fund them.
Defined benefit plans continue to dwindle: Survey The number of large U.S. employers that offer a defined benefit pension plan to new salaried employees continues to decline while the number offering only defined contribution plans continues to increase, according to a study released Wednesday.
Congress Weighs a Pension Bailout U.S. lawmakers are laying the groundwork for a possible federal bailout of some faltering pension plans that are jointly run by companies and unions. (subscription required)
Minneapolis pension fund given a path to avoid default Minneapolis and some smaller public jurisdictions are finally shedding an aging pension fund that was headed for default, but the employers retain liability for it.
Will State Pension Funds Need a $1 Trillion Bailout? The federal government could face another economic disaster and massive bailouts within a decade if it doesn't force state pension funds to revamp their operations soon, an economist says.
Padded Pensions Add to New York Fiscal Woes In Yonkers, more than 100 retired police officers and firefighters are collecting pensions greater than their pay when they were working.
Public pensions not root of financial crisis He claimed that public employees earn more than private-sector workers, but a recent joint study by the Center for State and Local Government Excellence and the National Institute on Retirement Security show public employees still earn 11 to 12 percent less than private-sector workers.
Miami offers unions cuts up to 12% Facing a potential $95 million budget gap next fiscal year, the City of Miami is asking its union employees to take pay cuts up to 12% and suggesting a switch to a defined contribution pension plan, according to proposals still under negotiation.
The importance of a good education But trustee education is important as many board members still struggle to get their heads around the idea of hedge funds.
Police, firefighters may be next for pension changes Police and firefighters may be next in line for changes in Illinois law that could limit their pensions, but in return are seeking power to demand payment from municipalities.
The New Fat Cats The indefensible pensions of public-sector employees.
15.7 Times Final Pay Needed for Retirement Readiness The average U.S. employee will need 15.7 times their final pay in retirement resources to maintain their current standard of living during retirement, according to a new Hewitt Associates analysis.
New York state, city plans settlement with Countrywide New York State Common Retirement Fund, Albany, and the five pension funds in the New York City Retirement Systems will receive a total of $624 million from Countrywide Financial and KPMG to settle a federal class-action lawsuit accusing the mortgage lender of violating securities law by making misstatements and omitting material facts about underwriting risky loans.
San Diego sues its pension system The city of San Diego is suing its retirement system in a dispute regarding how much financial responsibility, if any, city workers should bear for a pension deficit topping $2 billion.
The 2010 Annual Conference & Exhibition in Las Vegas, NV is less then 1 week away! Click here for more information about registration!
Miss. lawmakers mull change in pension fund Mississippi lawmakers on Thursday began a special session within their regular session to consider a public employees' pension change sought by Republican Gov. Haley Barbour.
Largest pension plans' funding improves: Analysis The funding levels of pension plans among large publicly held U.S. employers improved slightly in 2009 due to strong investment returns, according to a survey released Tuesday.
City Pension Reform Bill Introduced The fight for pension reform in Baltimore is officially before the City Council after a bill was introduced Monday night, and it pits city police and firefighters against City Hall.
California Pension Plan Would Vest 10 Years Later New California public employees would have to work 10 years longer to qualify for pensions under a plan by the state Senate's top Republican to shave $110 billion off retirement costs over the next three decades.
Report: Ind. Far Short of Funding Teacher Pensions Indiana is among the nation's five most underfunded teacher pension programs, with the assets to cover just over a third of the benefits it owes by state law, according to a report released this month by school-choice advocates.
The 2010 Annual Conference & Exhibition in Las Vegas, NV is less then 2 weeks away! Click here for more information about registration!
Pension costs swell Grand Rapids city budget deficit Things have gone from bad to worse for the city. As if a $17 million deficit wasn't crippling enough in this economy, officials now have to tack on another $3.7 million in debt.
The Grudge Match Over Your 401(k) A number of people who are changing jobs, being laid off or retiring are finding themselves in a tug-of-war between their former employers and investment firms eager to win their business. At stake: almost $400 billion of assets in 401(k)s
Teachers' Pension Gap May Be Triple That Reported Taxpayers across the U.S. owe public school teacher retirement accounts about $933 billion, nearly triple the amount reported by the plans themselves, a study says.
Missouri Senate Endorses Bill Shrinking Pensions Missouri senators have endorsed legislation designed to save money through changes to public retirement systems, including increasing the minimum retirement age and requiring workers to contribute to their pensions.
Pension system ensures qualified teachers in every classroom With my educational background, I could have made more money working in other fields. I believed then - as I do now - that teaching is a calling as much as a profession, a way to serve my community and our society.
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Shortfall Awaits California's Big Pension Funds A study released Monday by Stanford University estimates that California's three largest state-operated, public-employee pension funds—the California Public Employees' Retirement System, California State Teachers' Retirement System and University of California Retirement System—currently face a total shortfall of more than $500 billion.
California Gets a Bad Rap on Pensions in NYT California has done some really really stupid things (like a tax credit for first time homebuyers), but the NYT did the state and its readers a disservice in going after California's pension fund liabilities. The basic story is that if you assume a 4.14 nominal rate of return on pension fund assets, then the state's pension liabilities look really really bad.
Teachers' Pension Gap May Be Triple That Reported Taxpayers across the U.S. owe public school teacher retirement accounts about $933 billion, nearly triple the amount reported by the plans themselves, a study says.
Newton alderman fights Las Vegas junket A Newton alderman has presented a resolution asking the city's Retirement Board to reconsider its decision to use $5,000 in retirement funds to send two members to a conference next month in Las Vegas.
Study: Pension trouble will last years The struggle to fund public pension plans is dogging most states in the country and probably will continue for years before it eases, a new study concludes.
Fuzzy math and public pension hysteria David Crane is an unserious man with a serious purpose -- attacking public employees and public employee pensions, as he did in his April 6 Times Op-Ed article, "The $500-billion pension time bomb."
Missouri Senate endorses bill shrinking pensions Missouri senators endorsed legislation Monday designed to save money through changes to public retirement systems, including increasing the minimum retirement age and requiring workers to contribute to their pensions.
Public employees deserve decent pensions Any diminishment in retirement benefits will only mean that these public employees will require greater compensation in the salary portion of their compensation packages in order to fund their retirements
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Defined contribution plans create retirement insecurity A major looming problem for Americans is the accidental retirement plan - known to most people as the 401(k) - which began as a tax loophole to shelter the income of executives.
Schools Face Mounting Pension Crisis Schools now paying the equivalent of 4.78 percent of the employee payroll will see the rates rise to 8.22 percent starting in July, then to 10.59 percent in July 2011 before the leap to 29.22 percent in 2012.
Officials scrambling to find solution to hike in PSERS payments Delaware County school districts are facing a total $98.5 million in pension funding payments come the 2013-14 school year, according to an analysis performed by the Delaware County Intermediate Unit.
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State employees to protest retirement plan Michigan state government workers are expected to protest at the state Capitol as lawmakers continue hearings on legislation aimed at prompting more of them to retire.
Public-sector pensions serve a public purpose Before ripping apart our pension system, it would serve the media and the public to remember that New Jersey's Public Employment Retirement System is not a gift from the politicians to the employees who work for government. By law, a pension is deferred compensation that accrues to its holder.
General Assembly passes state pension reform A bipartisan Illinois General Assembly handed Gov. Pat Quinn a victory Wednesday, sending him an overhauled state pension system, cutting benefits for new city and state employees to save money for woefully underfunded retirement systems.
Newton retirement board defies mayor, OK's trip The Newton Retirement Board has upheld a vote to send two of its members to the National Conference on Public Employee Retirement Systems,which will be held May 2 - 6 in Las Vegas.
New Jersey Cuts Workers' Benefits New Jersey adopted a slew of measures to scale back government workers' benefits, as politicians from both parties allied to tackle the state's ballooning public-pension costs.
Time to rethink dominance of Washington's public employee unions In 1995, when I was president of what is now the Washington Policy Center, I sounded an alarm in a widely distributed op-ed piece about the potential budget havoc our public-sector unions could cause. Fast-forward to 2010 and our state's ability to function is completely out of balance. With a $2.8 billion budget shortfall this year and another projected $2 billion deficit next year, 60 percent of the state budget is untouchable.
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40 school system jobs could be cut Instead of hundreds of school system personnel being "rifted," the school system may lose as many as 40 positions or as few as 25, according to officials.
New Jersey Cuts Pension Contribution And Cuts Aid To Schools New Jersey Governor Chris Christie proposed a $29.3 billion budget that would suspend property-tax rebates, skip the state's $3 billion pension contribution and fire 1,300 workers next year.
Budget ax could fall on fire stations, police units, rec centers Three fire companies would be permanently closed, several recreation centers shuttered and the Police Department's helicopter grounded under Mayor Stephanie C. Rawlings-Blake's proposals to close the city's $121 million budget gap.
Assessing the Benefits of DB vs DC Plans: Retirement Plan Advisor, March 2010 While many small businesses have, over the past couple of years, been adopting 401(k) plans, some say they would actually be better served by considering the retirement plan options that the defined benefit (DB) space has to offer, not least because of the impending increases to income taxes that are set to happen in most states at the end of this year.
From CalPensions: Deals raised CalSTRS pensions, cut state costs In exchange for boosting CalSTRS payments to retirees, the state has saved money by cutting its annual contribution to the pension fund with two different legislative deals during the last dozen years.
Pension report costs city nearly $100,000 The city spent nearly $100,000 on accounting costs for a report recommending ways to slash costs from the fire and police pension plan.
Leave teacher pension A hybrid pension plan as proposed by PSBA can be more expensive than defined-benefit plans like PSERS and moving to a defined-contribution system would actually increase costs to taxpayers
The $2 Trillion Hole Promised pensions benefits for public-sector employees represent a massive overhang that threatens the financial future of many cities and states.
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Va. Assembly banks on economic pickup for pension plan Virginia lawmakers are counting heavily on an economic upswing to minimize the harm of underfunding the state's retirement system, one of the central planks of their budget-balancing strategy.
Pension lawsuit file against state A lawsuit backed by 294 municipalities, counties and school districts has been filed against New Hampshire contesting the state's reduced contribution to the state pension fund for local police officers, firefighters and teachers.
Failed Banks May Get Pension-Fund Backing as FDIC Seeks Cash The Federal Deposit Insurance Corp. is trying to encourage public retirement funds that control more than $2 trillion to buy all or part of failed lenders, taking a more direct role in propping up the banking system, said people briefed on the matter.
43% have less than $10k for retirement The percentage of American workers with virtually no retirement savings grew for the third straight year, according to a survey released Tuesday.
Calpers's role in deals draws scrutiny Calpers took a hit last year when its investment in Manhattan's Peter Cooper Village and Stuyvesant Town apartment complex collapsed. But Stuyvesant Town wasn't the huge pension fund's only foray into real-estate investments that involved ousting low-rent tenants.
Squeezed by ballooning pension costs, charters cut programs Stacey Gauthier at the Renaissance Charter School is worrying a lot these days -- about money. This year she's had to increase class sizes, cut the summer school program, and forgo hiring experienced teachers when an older teacher retires. Yet she still hasn't cut enough to be able to afford the school's rising pension costs, which have grown from $12,000 per teacher in 2004 to $21,000 per teacher this year.
N.J. Pension Deficit Grows 35 Percent to $46 Billion The funding deficit in New Jersey's pension system climbed by more than a third to $46 billion last year because of investment declines and a failure to make full contributions, according to annual financial reports.
Police, firefighters already have sacrificed To ask even more of Toledo police officers and firefighters who are already underpaid, understaffed, and outgunned, and who have sacrificed more than their counterparts in other Ohio cities, is unreasonable.
IMHO: Promises Premises It was hard not to be struck this past week by that Pew Center on the States report titled "The Trillion Dollar Gap."
Government workers get pension edge, study finds State public employees - such as public school teachers and state and city workers - on average receive hundreds of dollars more per month in retirement than higher-paid employees in the private sector, according to a new report from the Wisconsin Policy Research Institute.
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.
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.
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.
NCPERS wishes to thank our Legislative Conference registrants, speakers , and other participants for being so understanding and accommodating to the forced cancellation of the Legislative Conference due to the winter Blizzards of 2010. Refunds to registered attendees will be processed in the coming weeks. We look forward to seeing you at our Annual Conference & Exhibition in sunny Las Vegas, NV. Please click here for more information!
Towers Watson Finds DB Plans Outperformed DC Plans A Towers Watson news release said DB plans outperformed 401(k) plans by roughly 1 percentage point in 2008, although both types of plans lost value, and while most DB plans incurred losses for 2008, some actually reported small positive returns. By contrast, all DC plans in the study had losses of at least 10%, and a few had losses greater than 40%, more than any DB plan in the study, according to the news release.
N.J. state pension and benefits reforms move forward New Jersey Senate leaders Tuesday announced that bipartisan legislation to complete the unfinished business of what they describe as reforming the state's public employee pension and benefits system that begun nearly four years ago was formally introduced Monday night in the upper house.
To cut pensions is to break a promise (Laurie) Valentin claims that the deficits in the public pension funds are not caused by the economy or the tanking of the stock markets, but "occurred primarily for one reason: The size of the paychecks issued -- specifically the benefit (pay) increases in them." This is simply not true.
Gap for Calif. retiree health care grows to $52B The state controller's office on Tuesday found that California taxpayers are on the hook for more state government retiree health benefits than previously thought.
San Jose council votes to put experts on pension boards Facing crushing deficits driven in part by soaring retirement costs, the San Jose City Council voted unanimously Tuesday to replace most pension trustees with outside financial experts.
CHP union exec: lower pensions for new hires? A new bill backed by CalPERS and CalSTRS makes a second attempt to tighten control of placement agents, the middlemen who collect multi-million dollar fees for helping investment firms get pension fund money.
Fix sought for Minnesota teacher pension fund The board that oversees pensions for teachers and administrators is asking legislators to increase employee and employer contributions and reduce annual increases for retirees.
NCPERS Legislative Conference is just one week away! You can still register for this important conference- click here for more information! NCPERS has negotiated lower room rates for our attendees at the 2010 Annual Conference in Las Vegas, Nevada. The Wynn is now available to NCPERS members at $199, down from $235! Click here for more information!
Examining the impact of Obama's plans The White House on Monday previewed several middle-class tax cuts and spending programs that President Obama will propose in Wednesday's State of the Union address.
City violates pension law a third time, panel finds The Menino administration approved a lucrative consulting job for a retired State Police detective who was already earning a sizable public pension, a move that a city watchdog agency says violated state law.
PERA compromise wins panel support The proposed Public Employees' Retirement Association rescue plan passed the Senate Finance Committee 5-2 Tuesday after members approved key changes of interest to school districts, to teachers and classified employees and to retirees.
California Teachers Pension Fund $42.6 Billion Short The California State Teachers Retirement System, the second biggest U.S. public pension, will need to ask taxpayers for more money after investment losses left it underfunded by $42.6 billion.
Pension issue may affect talks on police-fire wages The leaders of Springfield's police and fire employee groups say their conversations with the city manager about whether the city should help pay for a pension enhancement added in 2000 are not related to annual "meet and confer" wage and benefit talks.
In Dutchess, educators' pensions top state average Proponents of the system say good public pensions are needed to attract quality teachers. Salaries in the public sector, such as educators', are not competitive with those in private businesses, they said.
NCPERS Legislative Conference is just two weeks away! Please click here for more information!
Liberty Township faces financial challenges Liberty Township fiscal officer Mark Gerber has made sweeping recommendations to rein in spending upon completing his first comprehensive review of the township's financial health.
Baltimore County Council OKs weaker pension reform bill The Baltimore County Council approved Tuesday night the weaker of two pension reform bills, adopting a measure that is unlikely to satisfy critics of the current system, which greatly exceeds benefits to most working families.
Fixing the pension system while avoiding the courts This week's news that the city of San Diego's annual pension payment is nearly $20 million higher than projected caught a lot of people off guard. San Diego's annual pension payment is now at $230 million, or roughly 42 percent of the city's payroll.
Jacksonville to fire union: Take pension deal or it'll get worse If Jacksonville's public safety unions don't move quickly to accept a pension reform proposal that applies only to new employees, the city will take steps to cut retirement benefits for current workers, too.
Billion dollar headache: Looming pension liability worries state officials The state's current operating budget deficit is $2.6 billion, a situation that has state lawmakers scrambling to find program cuts and tax increases to balance the ledger. But Republicans in the Legislature are sounding the alarm about another billion-dollar problem looming for Washington - the unfunded liability in the state's pension system. That number now stands at about $6 billion, they say.
Teacher pension plans cheaper that 401(k) model The Dayton Daily News recently published articles and an editorial questioning the sustainability of Ohio's public pension systems and health-care coverage for retirees.
Below are stories from around the country about public pensions. As a reminder, we encourage you to register for the NCPERS Legislative Conference in February. Click here for more information!
Update 2- Firms paid $125 mln in feed for Calpers business Investment firms paid placement agents more than $125 million in fees to win business at Calpers, including nearly $59 million to a firm led by a former board member of the pension fund, Calpers said on Thursday.
Nevada City could roll back public pensions Retirement plans for some Nevada City employees are in for a slight dip after private-sector investments, tied to the stock market, tumbled in the recession.
U.S. pension fund invests $250 mln with Finisterre The giant New York State Common Retirement Fund has invested $250 million with emerging markets manager Finisterre Capital in a further sign pension plans are backing hedge funds despite losses during the credit crisis. The $126 billion fund (NYSCRF), the third largest pension plan in the United States and already an investor with Finisterre, has provided the seed capital for the Finisterre Emerging Markets Fund, a feeder into Finisterre's three existing hedge funds.
As we begin a new year and a new decade, we, unfortunately, should be prepared to face the same misguided and uninformed criticisms and attacks we bore in the last decade. Below are a sampling of news clips from around the country and aside from the lone positive piece on the Wisconsin plans, the rest are all critical of public pensions and benefits.
·Pension Tension The recent history of pension plans for state and local government employees can be summarized as "promise now, pay later." Eager to attract good workers -- or to placate unionized ones -- elected officials often contracted for generous retirement benefits, including health benefits, without increasing taxes to pay for them.
·Groups say current pension funding will curb new jobs Many employers will use money earmarked for job creation and capital improvements to fund their pension plans unless federal lawmakers provide more funding relief, according to a letter sent to President Barack Obama and members of Congress.
·Public-pension tab in Ohio: $4.1 billion -- and growing At a time when budget problems are forcing Ohio schools to lay off teachers and cities to raise taxes, eliminate jobs or both, one expense that government leaders have not cut is pensions for their workers.
·N.Y. Teachers' Pension Change Prompts Rush to Lock In Benefits Prospective full-time teachers are scrambling to get into the state pension plan before a measure designed to save New York taxpayers billions of dollars takes effect New Year's Day.
·NJ Lawmaker Proposes Public Pension Reform A New Jersey lawmaker is planning to introduce legislation that would bar nongovernmental workers from enrolling in the state's taxpayer-funded pension system.
·Pension costs swell amid deficit As service cuts and layoffs are being utilized to slash the budget deficit San Francisco is facing, the hidden expense of health benefits and pensions for workers is skyrocketing, putting a strain on city coffers.
·Public employee pension funds have better year After a disastrous 2008, Wisconsin's three major public employee pension funds rebounded during the first 11 months of 2009.
Pittsburgh Delays Vote to Tax Tuition In a sudden change of course, Pittsburgh's mayor asked the City Council Wednesday to postpone a vote on the nation's first tuition tax on college students, holding out hope that the city's 10 colleges and universities will agree to provide economic help voluntarily.
State workers to pay share of pension The austere budget Governor Tim Kaine plans to submit will, among other things, scale back the share state government contributes to Virginia employee retirement plans.
This week's clips lead off with an editorial from the Washington Post written by Treasury Secretary Timothy Geithner and Director of the National Economic Council Lawrence Summers. The two describe the administration's framework for modernizing financial regulation and supervision. Given that most agree the economic meltdown resulted from inadequate and inept regulation, let's hope this effort is effective in sparing us more pain in the future.
A New Financial Foundation Over the past two years, we have faced the most severe financial crisis since the Great Depression. The financial system failed to perform its function as a reducer and distributor of risk. Instead, it magnified risks, precipitating an economic contraction that has hurt families and businesses around the world.
U.S. Senate Democrats unveil healthcare bill Leading Senate Democrats unveiled on Tuesday a plan to reshape U.S. healthcare that calls for sweeping insurance market reforms and prohibits insurers from denying coverage or charging more due to medical history.
Bleak Times For Buyouts Private equity firms have taken plenty of blame for sinking companies with piles of debt, rewarding themselves with fees and projecting returns that proved illusory. Now even their once-reliable backers have soured on them: institutional investors say they expect a quarter of private equity firms to fail in the next seven years, according to research released Monday.
Calpers raises private equity, venture allocation The board of Calpers, the biggest U.S. public pension fund, voted on Monday to let its investment staff increase its asset allocation for private equity and venture capital investments and to reduce its stock holdings.
Baldacci has bill on state retirees' benefits An emergency bill protecting state retirees from losses of retirement benefits is awaiting consideration by Gov. John Baldacci. The House and Senate gave final, overwhelming approval late Friday to an emergency bill -- sponsored by Senate President Elizabeth Mitchell, D-Vassalboro -- that puts in place a floor to ensure state retirees don't see a cut in benefits, even if the Consumer Price Index falls.
GOP bill: Let state retiree funds go into science research A Southern Arizona lawmaker wants to allow the state retirement system to invest in research cooperatives between universities and corporations, with a promise the fund would profit from discoveries.
State pension benefits hikes championed While the Legislature is poised to close a series of controversial state pension loopholes in a reform bill up for enactment today, it is also considering bills that add up to 20 new ways in which state employees could boost pensions.
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Leading off this week's edition of the News Clips is an article from Fortune detailing the "low-lights" of 401(k)s--including the almost unprecedented notion that the 401(k) as it exists now should be scrapped--and an article reporting that health care costs for employers are expected to increase by nine percent next year. Additionally, don't miss the letter from a Vista (Calif.) firefighter correcting the misinformation printed in editorials in his local paper.
Has the 401(k) failed? A small but vocal group of advocates think the 401(k) is a relic of a bygone age. What's wrong with the current system - and how it can be salvaged.
Employers' health care costs expected to rise 9 percent Health care costs for the nation's employers are expected to grow by 9 percent next year, according to the first reported projections of medical cost trends for 2010.
L.A. mayor and council weighing retirement option for reducing city's workforce Looking to avoid the need for layoffs and furloughs, Los Angeles Mayor Antonio Villaraigosa and the City Council are weighing a plan to offer early retirement to thousands of city workers, some of whom would receive an incentive of at least $15,000 to leave.
Delaying pension funding blasted Leaders of the state's largest pension system say Gov. Ted Strickland's proposal to temporarily reduce payments to the fund to help balance the state budget would threaten the system's ability to offer health-care benefits to retirees.
Should state pay $4 billion into retirement plan? When state lawmakers return to Springfield on Tuesday, they'll try to hammer out fixes to a statewide construction program and are expected to continue battling over the still-unsigned budget.
Perry nixes revamp of TRS board Gov. Rick Perry vetoed a bill that would have given more voice to retirees on the board of the Teacher Retirement System of Texas.
OC Workers Vote to Change Pension Plan, Retirement Age Thousands of Orange County workers will begin voting Saturday on a new contract that includes a two-tier "hybrid" retirement plan that would require a new state law before it could go into effect.
Teacher investments rebound with markets Arkansas Teacher Retirement System investments, which plummeted more than $3 billion in recent years, dropped in value by about $500 million in the last quarter before rebounding a bit the last two months amid a recovery in the stock market, an investment consultant told the system's trustees Tuesday.
National Conference on Public Employee Retirement Systems. 444 N. Capitol St., NW Suite 630, Washington, D.C. 20001 Tel: 1-877-202-5706 Fax: 202-624-1439
This week we lead off with a Wall Street Journal opinion (read: scaremongering) piece written by Andrew G. Biggs, a resident scholar at the American Enterprise Institute. This looks like another run by anti-pension activists, in the guise of taxpayer watchdogs, at scaring taxpayers into supporting the dismantling of defined benefit pensions and moving toward defined contribution systems. As always, we need to remain vigilant and continue to fight against these ideologues.
Public Pensions Cook the Books Here's a dilemma: You manage a public employee pension plan and your actuary tells you it is significantly underfunded. You don't want to raise contributions. Cutting benefits is out of the question. To be honest, you'd really rather not even admit there's a problem, lest taxpayers get upset.
Pension funds to lead BofA investor lawsuit A group of five public pension funds, including state funds in Ohio and Texas, have won the right to lead investor class-action lawsuits against Bank of America Corp over its acquisition of Merrill Lynch & Co.
Dismissal is sought in pension fraud case Defense lawyers for five former San Diego pension system officials who face fraud charges are accusing prosecutors of misconduct and asking a judge to dismiss the case.
Pension adviser settles NY kickback probe for $2M The Pacific Corporate Group, a company that helps big government pension funds decide how to invest their money, has agreed to pay $2 million to extract itself from a corruption investigation in New York.
Calif. judge orders release of public pension data California's leading taxpayers' rights group says the public scored a major legal victory this week when a judge ruled that a county's pension records are not entirely confidential.
Philly officials decry pension takeover proposal Philadelphia officials are criticizing a proposal circulating in the state Legislature that could result in a state takeover of the city's municipal pension plan. The state Public Employers Retirement Commission wants to move city pensions that have less than half of the assets required to meet long-term obligations into a state-run pension plan.
SC: State ordered to pay retirees The South Carolina Retirement System must pay back about $40 million in retirement contributions it improperly took from the paychecks of state employees who participated in a program that lets them continue working after retirement, a state judge ruled this week.
National Conference on Public Employee Retirement Systems 444 N. Capitol St., NW Suite 630, Washington, D.C. 20001 Tel: 1-877-202-5706 Fax: 202-624-1439
The first link in today's clips concerns a new report, issued by the Philadelphia Research Initiative of the Pew Charitable Trusts, on the state of Philadelphia's employee benefits. The report indicates that the current recession and past failures by the city to make actuarially required contributions have resulted in Philadelphia's pension plan facing significant funding challenges. The report also notes that employee unions and the city are currently seeking ways to meet the city's pension and health care obligations. Hopefully an equitable resolution can be found so that the system finds itself on better financial ground.
Pew Trust Report on Philadelphia Employee Benefits To help inform the public discussion, the Philadelphia Research Initiative, with assistance from the Pew Center on the States, sought to update the situation regarding pension and health-care conditions in Philadelphia and the comparison cities, based on interviews with officials as well as the latest available documents.
The U.S. retirement system: Pretty good on average. But who's average? The OECD published its charmingly mistitled once-every-few-years report Pensions at a Glance on Tuesday. It's 280 pages long, and there appears to be lots of stuff in it about the troubles the financial/economics crisis poses for pension funding. But I always go straight for the charts that compare pension systems across countries.
SEC Proposes Rules to Halt Money-Market Fund Losses The U.S. Securities and Exchange Commission proposed rules aimed at preventing losses for money- market fund investors after last year’s collapse of the Reserve Primary Fund triggered a run on the $3.8 trillion industry.
Schwarzenegger: Cut retirement benefits for new hires Gov. Arnold Schwarzenegger, calling current benefits "unsustainable," proposed a sweeping reduction in pension and retiree health benefits for new state workers.
Pension cut proposal is Ohio budget sticking point A proposal by Gov. Ted Strickland to cut the amount Ohio contributes to a pension fund for government employees has emerged as a major sticking point in budget negotiations, as lawmakers worked Saturday to meet an impending budget deadline.
MI: Pension records targeted in bill State Rep. Tim Bledsoe introduced legislation Friday that would require municipal pension plans in Michigan to keep travel records and other documents for five years.
Wyoming investments continue rebound The value of Wyoming's investments continues to rebound after falling sharply in last year's stock market collapse.
PA: Pension fix in budget 'probable' Legislation intended to rescue municipal pension funds reeling from the global economic downturn could be part of the state budget proposal, a top state pension official said Tuesday.
IA: Public employee pension fund could be reduced State officials say Iowa's largest public employee pension fund could be forced to lower benefits for future retirees because of the struggling economy.
National Conference on Public Employee Retirement Systems. 444 N. Capitol St., NW Suite 630, Washington, D.C. 20001 Tel: 1-877-202-5706 Fax: 202-624-1439
Today's first link suggests that health care reform at the federal level is well on it's way, with the House unveiling its revised plan, while the second article quotes Sen. Kent Conrad saying that health care legislation will pass out of the Finance Committee within a month. Let's hope these efforts have legs, and we can finally see some real progress on this important issue.
House Democrats unveil health care reform plan House Democrats unveiled their revised version of health care reform Tuesday, offering a proposal that includes a government-funded health insurance option, requires both individuals and employers to participate, and taxes the wealthy to help cover costs.
Conrad Says Health-Care Plan Will Clear Finance Panel by August The Senate Finance Committee will approve a U.S. health-care overhaul plan within a month, said Senator Kent Conrad, a top Democrat on the panel, even though setbacks have slowed the drive for a bipartisan compromise.
NY: To Fix Pension Peril Before staggering away from Albany last week, the state Senate delivered a pleasant surprise for taxpayers -- rejecting a well-intentioned but badly designed bill that would have allowed the state and local governments to borrow billions from the state pension system while potentially compounding financial risks for generations to come.
OH: Options for teacher pensions still 'under consideration' "Under consideration" were the two big words Thursday during a workshop for retired teachers. Hosted by the Putnam County Retired Teachers Association, more than 150 teachers and administrators from Putnam and surrounding counties attended the workshop for an update on plans for the long-term pension plan for teachers and health care funding.
CA: Critics target recipients of six-figure public pensions Organization posts the names and incomes of 5,100 retirees in California who receive annual pensions of $100,000 or more. A judge denied pensioners' request to block publication of such information.
Missouri pension benefits for elected officials, judges to be published Pension benefits for Missouri's elected officials and judges may now be viewed online. The Missouri State Employees' Retirement System voted Thursday to publish the retirement benefits for former public officials on its Web site. Last month, the agency decided to create a searchable database of its employees' salaries.
OH: State pension fund won't be touched to patch budget A controversial plan to tap the state's largest public pension system to help balance the state budget has been shelved. Lawmakers said today that they have rejected a proposal from Gov. Ted Strickland to generate $256 million by reducing the percentage of employee salaries that the state contributes to the Public Employees Retirement System.
MA: Running on empty Being a mayor today must rank somewhere below pest control officer. If the trickle-down theory of wealth has been a bust, and it has, the trickle-down effect from state and federal cuts on cities has flowed smoothly. It is on a mayor’s desk that these things land. To be mayor today is to choose the least horrendous option.
Panel Mulls Ways To Combine Minn. Pension Funds Minnesota lawmakers are looking at whether it makes sense to fold some public pension funds into others. The Legislative Commission on Pensions and Retirement convenes Wednesday. it will consider the feasibility of a so-called pension fund consolidation assistance account.
MA: Pension fund task force schedules public meetings The Police-Fire Pension Fund Citizens' Task Force will hold two town hall meetings this month to gather public input on its recommendations to help fix the pension's $200 million shortfall.
National Conference on Public Employee Retirement Systems 444 N. Capitol St., NW Suite 630, Washington, D.C. 20001 Tel: 1-877-202-5706 Fax: 202-624-1439
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!
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.
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.
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.
National Conference on Public Employee Retirement Systems. 444 N. Capitol St., NW Suite 630, Washington, D.C. 20001 Tel: 1-877-202-5706 Fax: 202-624-1439
This week's first link details the federal government's efforts on the issue of "pay to play" that has swirled around the public pension community for the last few months. As always, NCPERS will continue to monitor development on the issue.
SEC to restrict investment firm donations Private investment firms would face restrictions on campaign contributions to U.S. public pension fund officials under a proposal that won provisional approval.
Government studying company-sponsored automatic IRAs Not saving a dime in a 401(k) or an IRA? Uncle Sam wants you. The Obama administration's plan to bring retirement accounts to more working people, a concept known as the automatic IRA, is taking shape.
Pension freezes rise, but are they effective? Nearly a third of the pension plans offered by Fortune 1,000 firms are now frozen, according to a report from Watson Wyatt. Though the rate at which companies are freezing plans has dropped since the peak year in 2006, the 190 plans now locked down represent a 12% increase from a year ago.
NCPERS Responds to NPR Story on Pensions With regard to your recent report, California Pensions Forcing Cities into Bankruptcy, the National Conference on Public Employee Retirement Systems finds it to be at best incomplete and one-sided.
Opinion: Dismantling public pensions would hurt more than help It's unfortunate that USA TODAY's July 13 editorial pits workers with some hope of retirement against the most vulnerable workers those lacking pensions ("Public-employee pensions put cities, states in tight squeeze," Our view, Retirement benefits debate).
L.A. retirement fund enacts campaign disclosure rules The Fire and Police Pensions board, which manages an $11.9-billion portfolio, requires firms wishing to do business with it to report donations they have made to candidates for city office.
NYC drops Iran links from pensions The New York City comptroller said he would divest the holdings in several companies in the New York City Retirement Systems because of ties to Iran.
California Pension Fund Hopes Riskier Bets Will Restore Its Health Big as California's budget woes are today, so are the problems lurking in its biggest pension fund. The fund, known as Calpers, lost nearly $60 billion in the financial markets last year. Though it has more than enough money to make its payments to retirees for many years, it has a serious long-term shortfall.
Maine retirement chief sees solid future State House reporter Susan Cover talked recently with Sandy Matheson, executive director of the Maine Public Employees Retirement System, about how the system has performed in a tough economy. Matheson took over at the retirement system a little more than three months ago, after working in Washington state.
National Conference on Public Employee Retirement Systems 444 N. Capitol St., NW Suite 630, Washington, D.C. 20001 Tel: 1-877-202-5706 Fax: 202-624-1439
Our second link in this week's issue provides detail on a new National Institute on Retirement Security report on public pension and the aged. The Pension Factor: Assessing the Role of DB Plans in Reducing Elder Hardships has some really useful information that helps make the case that pensions are far better at delivering secure retirement than other vehicles.
SEC Sheds Some Light On Proposed Placement Agent Ban Placement agents' worst nightmares have come true, as the Securities and Exchange Commission Monday released the full, 114-page documentation supporting proposals on ending pay-to-play problems at public pension funds that it made last month.
Study Says Pensions Reduce Poverty Defined benefit pension income plays a critical role in reducing the risk of poverty and hardship among older Americans, according to a new study.
$3.4 billion shortfall for N.H. pension The sinking economy has taken a billion-dollar bite out of the state's already-ailing pension system, leaving the New Hampshire Retirement System with about 59 percent of what it needs to pay its long-term liabilities, according to preliminary calculations, for a shortfall of $3.4 billion.
RI: Public employee unions align to sue over pension changes Rhode Island's public employee labor unions are mobilizing to file a class-action lawsuit against the state to block pension changes the legislature adopted in June to save taxpayers tens of millions of dollars.
MA: Pension panel recommendations could come with a cost As they delved into the intricacies of the pension system Monday, a special commission charged with recommending reforms to the way Massachusetts funds retiree benefits hit a snag on a broader issue: should their proposals come at no cost?
CA: L.A. pension board puts off early retirement debate; unions express frustration A Los Angeles pension board delayed a vote today on the city's planned early retirement program as union leaders stepped up their campaign to derail a controversial proposal for making the city pay off the program's cost 10 years sooner than expected.
PA: State could take over city's pension fund A proposed statewide pension fix could boost the city of Pittsburgh's payment for retiree benefits from $50 million this year to $73 million -- a steep jump that would be tough to manage, according to Mayor Luke Ravenstahl's administration.
AR: Pension limit lifted for working retirees When Charlie Brown returned to work at the Arkansas Department of Workforce Education after briefly retiring last year, he knew that earning a paycheck would mean lowering the retirement benefit he had accrued over 28 years as an educator and state employee.
National Conference on Public Employee Retirement Systems 444 N. Capitol St., NW Suite 630, Washington, D.C. 20001 Tel: 1-877-202-5706 Fax: 202-624-1439
This week's first link is to a positive (*gasp*) opinion piece by Bill Cotterell, of the Tallahassee Democrat, regarding Florida's pension fund, which retains a 93 percent funded ratio. The second link is in the form of a point/counterpoint, between Scott Adams of AFSCME and Marcia Fritz of the California Foundation for Fiscal Responsibility, on the merits of DB plans versus DC plans. Perhaps we're biased, but we'll give the win to the pro-DB side, especially since the opponent started her argument by conceding that DB plans "can be the most efficient method of providing a secure risk-free retirement benefit for public-sector workers."
Opinion: Florida's pension fund bent but didn't break Or take, for another instance, last week's financial report from the State Board of Administration. After a wild ride on Wall Street, the fiscal year-end report showed a decline of 18.9 percent in total assets for the Florida Retirement System.
Debate: 401(k) plans for everyone? With a growing retiree population, can any public-employee pension fund stay solvent? AFSCME's Scott Adams and Marcia Fritz, of the California Foundation for Fiscal Responsibility, debate.
WI: Funds managed by state Investment Board grow After a disappointing performance in 2008, the state's retirement accounts are tilting back up. Retirement funds managed by the state Investment Board totaled $63.3 billion as of June 30, a 2 percent increase over the Dec. 31 close of $61.8 billion, according to preliminary results.
AR: Attorney General says retirement system can recover pay from double dippers Attorney General Dustin McDaniel said today he has advised the retirement system for state workers to investigate and try to recoup money paid to any elected officials found to be improperly collecting retirement benefits and a paycheck. McDaniel also suggested in an interview that because some members of the Arkansas Public Employees Retirement System's board are employed, yet also draw retirement benefits, they should refrain from voting on any matters involving the issue.
More West Virginia teachers plan to retire The number of West Virginia teachers planning to retire has jumped this year. By the end of June, about 960 teachers had announced they plan to retire, and that's about 100 more than this time last year, according to state retirement system data.
MA: State opens investigation into retirement board The agency overseeing the state's 106 retirement systems has launched an investigation of the Essex Regional Retirement Board, focusing on a $500,000 retirement perk for its executive director, Timothy Bassett, and on violations of the Open Meeting Law.
National Conference on Public Employee Retirement Systems. 444 N. Capitol St., NW Suite 630, Washington, D.C. 20001 Tel: 1-877-202-5706 Fax: 202-624-1439
NCPERS, along with the IAFF, AFSCME, NEA, and the Teamsters, will be hosting a webinar at noon on September 1, 2009 to provide an update on GASB Statements 43 and 45. We hope you'll join us at NCPERS.org for the event. More details will be available soon on the website. Also, be sure to check out Bill Gallagher's clear thoughts on the Pennsylvania Public School Employee Retirement System in the second link; it's a really compelling piece from a retired teacher.
One Public Pension Fund Speaks Out Against Placement Agent Ban Since the Securities and Exchange Commission announced its proposed ban on placement agents, comment letters have flowed in from all corners of the investment world, except one: the public pension community itself.
Opinion: Don't blame Pennsylvania's pension spike on school employees Many members of the media, the Legislature and others seem to take as fact that the 2001 legislation giving future school retirees a raise in pension benefits is the primary -- or even sole -- reason school pension contributions for employers will rise significantly in the near future.
Opinon: Public pensions under pressure in Minnnesota Retirement has taken a hit as the stock market has suffered. The average 401K account fell 27 percent in calendar year 2008. Those accounts, plus the promise of Social Security, have become the primary retirement plan for many private-sector workers.
OH: Greenberg,Former Executives To Settle AIG Holder Suit Source Maurice R. "Hank" Greenberg, American International Group Inc.'s (AIG) former chief executive, and a group of former AIG executives have agreed to pay $115 million to settle a shareholder lawsuit over alleged false statements regarding the insurer's financial results.
CA: Officials call for state pension reform Predicting public pension system failures and government bankruptcies in the near future, state and local leaders Monday called for reforms to retirement systems statewide that are turning a growing number of public servants into "$100,000 pension club" millionaires.
MI: Lawsuit claims Textron misled investors on backlog A U.S. institutional investor sued Textron Inc (TXT.N) on Thursday, charging the world's largest maker of corporate jets with misleading investors with an overly rosy picture of business conditions.
National Conference on Public Employee Retirement Systems 444 N. Capitol St., NW Suite 630, Washington, D.C. 20001 Tel: 1-877-202-5706 Fax: 202-624-1439
Last week I failed to include the American Federation of Teachers in the list of organizations hosting the GASB Webinar on Tuesday, September 1. They are one of the driving forces behind the Webinar, and I apologize for the oversight. Also, be sure to check out the two Op-Eds this week, one of which is from a school employee and the other from Raymond Edmondson, CEO of the Florida Public Pension Trustees Association.
Pa. Senate panel OKs municipal pension reform plan A Senate panel has unanimously endorsed a bill to reform Pennsylvania's municipal pension laws and allow the state's largest city to increase taxes to help fix its ailing retirement system.
Firms Answer CalSTRS Call for Increased Diversity on Boards Firms named in six of eight shareholder proposals filed this year agreed to calls by the California State Teachers' Retirement System (CalSTRS) to seek greater diversity in their board directors.
WV pension plans may get millions more West Virginia's retirement systems were expected to be big factors in fiscal year 2011 budget planning as the state works to make up for investment losses and flat revenue projections, the state's budget director says.
Detroit pension funds want to build $7.4M riverfront HQ Already criticized for excessive spending on travel and poor investment deals, Detroit's two public pension funds are planning to build a $7.4-million headquarters along the Detroit River.
Op-Ed: Tell whole story of public employees I have been reading with interest the series of articles that Daniel Borenstein and Lisa Vonderbrueggen have written over the last few months about public employee salaries and retirement benefits.
Op-Ed: Public pensions are not lavish Editorial writers and columnists across Florida have lambasted public pension benefits in recent months, declaring that public pension plans are a relic of out-dated economic models and provide overly generous benefits.
National Conference on Public Employee Retirement Systems 444 N. Capitol St., NW Suite 630, Washington, D.C. 20001 Tel: 1-877-202-5706 Fax: 202-624-1439
With the Labor Day holiday behind us, Members of Congress return to the nation's capital and the big push begins for health care reform. At the same time, President Obama and Treasury Secretary Timothy Geithner have unveiled their plans to help Americans better prepare for retirement (see first article, which has a link to the report "Secure Retirement for American Families"). Perhaps this fall session of Congress will bring about serious work toward achieving some important goals for America's citizens.
Statement of Treasury Secretary Tim Geithner on the Administration's New Retirement Security Initiatives Today, the Administration announced steps we are taking to make it easier for working families to save, particularly for retirement. Working Americans should be able to retire with dignity and security, but nearly half of the nation's workforce has little or nothing beyond Social Security benefits to get by on in old age.
Pensions, 1980 vs. Today I have an article today that discusses how a retirement system based on private savings is affecting the job market. In short, when the economy is contracting, and employers are trying to shrink their payrolls, older workers cling to their jobs because their nest eggs have shrunk.
California Senate Approves Placement Agent Disclosure Rules California's Senate passed a measure requiring more disclosure by placement agents seeking to win state and local government pension fund business and lengthening so-called revolving door prohibitions.
VA: VRS Releases 2009 Returns The Virginia Retirement System (VRS) experienced a -21.1 percent return on its investment portfolio for fiscal year 2009, ending the year with $42.9 billion in assets.
TX: New law could affect taxpayers A new law that keeps city retirement benefits profitable even in economic downturns could end up costing city taxpayers, city officials said.
The first story this week is a New York Times article on the recent hearings held by GASB on whether that organization should change the reporting requirements for public pension funds. After having sought comments from users of financial statements, GASB held public hearings in Connecticut and Washington, DC, where interested parties testified as to their views on the subject (NCPERS submitted comments, which can be found An Overhaul or a Tweak for Pensions After more than three years of deliberations, the board that sets the accounting rules for state and city governments is still far away from issuing a new standard for public pension funds.
OH: State calls for public pension overhaul Facing billions of dollars in future funding gaps, Ohio's public pension systems are getting ready to ask lawmakers to spread the pain among retirees, public employees and taxpayers.
AR: Teacher retirement system regaining value The Arkansas Teacher Retirement System is regaining value after a $2 billion dip. The system’s investment adviser informed its board today that overall investments rose 5.6 percent in July, bringing system value to $9.2 billion, up from $8.805 billion at the end of the last fiscal year.
TX: City's pension board kills pay hike The board that oversees the $1.9 billion pension fund for city employees voted down a proposed 6 percent payroll increase for the staff of the system, which incurred steep investment losses last year.
LETTER: A More Secure Retirement Re "About Your 401(k)" (editorial, Aug. 24): As you note, even before the market downturn, 401(k) account balances were woefully inadequate.
The first link in today's installment of the News Clips is a typical example of pension envy, outrage at taxpayer "waste", half-truths and incomplete reporting. The good news is that blogger Adam Doster at Progress Illinois (link #2) does a pretty good job of refuting the notion that a government job will ensure one a "fat retirement."
IL: Public pensions, fat retirements Want to retire with a fat pension? Get a government job in Illinois. Nearly 4,000 retired government workers have pensions that pay them at least $100,000 a year.
IL: The Sun-Times Sensationalizes State Pensions In what they call a "a first-of-its-kind Sun-Times analysis," reporters Tim Novak, Art Golab, and Chris Fusco have unearthed some eye-opening statistics about the "17 largest retirement plans for government workers in Chicago, Cook County, and the state of Illinois."
VA: State might ask workers to contribute to their retirement Gov. Timothy M. Kaine's proposal to defer a quarterly payment into the pension plan for state workers next spring may be just the first step toward a shift that could require workers to contribute a portion of their paychecks toward their retirement.
SD: Plan aims to rebuild retirement fund A program that allows some public employees to draw a regular paycheck at the same time they are receiving retirement benefits is under scrutiny as the state looks to stem losses in its retirement fund.
Judge Dismisses Citigroup Derivative Lawsuit Over ARS A U.S. judge has dismissed a derivative lawsuit against Citigroup Inc. (C), its executives and its directors over the bank's involvement in the auction-rate securities market.
OH: Merrill Lynch settlement OK'd A $475 million settlement has been completed in a class-action lawsuit led by the State Teachers Retirement System of Ohio against Merrill Lynch.
Generally, our clips are snapshots of the issues that public pension funds are dealing with around the nation. While we aren't able to put every story in our clips, we like to make sure it shows a representative sample of the stories in various states.
We also like our members to know that we provide more comprehensive informational resources. To that end, we produce a compendium of state legislative initiatives three times a year so that you know what other states are dealing with. We recently published Pension and Retirement Plan Enactments in 2009 State Legislatures, which can be found on our website by clicking here.
US: Public pensioners have taxpayers as a backstop When it comes to retirement security, it pays to have something that is good enough for government work. While private-sector workers can only hope their 401(k)s and IRAs recoup their big losses of the last year, government employees are at less financial risk because their pensions are generally guaranteed by law -- with taxpayers on the hook for benefits.
US: Pay-to-play cleanup may hit new PE funds Few disagree that the murky world of political fixers who hook up private equity firms with public pension funds needs cleaning up. But there are fears that an overzealous crackdown by regulators will also destroy a system that helps new and smaller funds to survive.
FL: Governments helped to create this mess (OpEd) All the cacophony over some county salary adjustments, combined with a lack of historical appreciation over how three of our largest governments helped create this mess, needs to be clarified. Begin with the City of Miami, which faced bankruptcy in 1996.
Missouri to increase funding of employee pension fund Pension finance is an eye-glazing subject, but it's commanding plenty of attention as government retirement systems scramble to come up with enough money to offset steep stock market losses.
OH: Board OKs delayed bonuses The board of the State Teachers Retirement System of Ohio voted yesterday to pay $3.4 million in bonuses to its investment staff, but only after the fund's assets grow to certain levels.
IA: IPERS to receive lawmakers' help The Iowa Legislature will work to shore up finances of the state's largest public employees' pension fund, which has lost billions of dollars in investments, Senate Majority Leader Michael Gronstal said Wednesday.
KS: KPERS facing bankruptcy if changes are not made, report says A report released yesterday by the Center for Applied Economics at the University of Kansas School of Business reveals that unless drastic changes are made to the structure of KPERS, the Kansas Public Employees Retirement System, the system will be unable to pay out promised benefits, and the shortfall--as much as $10 billion--will fall onto taxpayers' shoulders.
While not directly related to any particular story in this week's News Clips, we wanted to make sure you had an opportunity to view the new Health and OPEB Funding Strategies: 2009 National Survey of Local Governments, partially sponsored by NCPERS and conducted by Cobalt Community Research. The survey has some insightful data on what communities have done to evaluate their liabilities, and how they expect that information will affect post-employment benefits funding strategies.
Ohio leads five pension funds in suing BofA over Merrill deal The state of Ohio is leading five pension funds in suing Bank of America Corp. over its purchase of Merrill Lynch & Co. Ohio Attorney General Richard Cordray said Monday that the lawsuit against BofA, Merrill Lynch and executives, including BofA CEO Ken Lewis, could eventually seek billions in damages.
KS: KPERS report sparks war of words The Kansas Public Employees Retirement System funding problem is starting to generate a lot of heat. KPERS suffered $2.3 billion in investment losses this year. No current retirement benefits are in jeopardy, but a report by the Kansas University School of Business Center for Applied Economics called the issue a "funding crisis," adding that "KPERS is bankrupt under current operating assumptions."
MI: Suits against pension trustees move forward Wayne County Circuit Court Judge Amy P. Hathaway today refused to toss out three lawsuits alleging the trustees of Detroit's two public pension plans squandered city workers' retirement money by investing in questionable deals that later failed, costing the funds tens of millions of dollars.
NY: State Comptroller enacts campaign-contribution ban As per a recent executive order signed by Thomas DiNapoli--the New York State Comptroller and the exclusive trustee of the $116.5 billion state pension fund--a ban has been imposed on the pension fund restricting it from doing business with money managers who make campaign contribution to candidates running for the comptroller's office.
CA: Calpers website to push back at emboldened critics Calpers, the biggest U.S. public pension fund, will launch a website on Thursday to answer critics who say its historic losses have created a financial time bomb and invite a political campaign to rein in its retirement benefits.
AR: ATRS head to ask for attorney general's opinion The head of the Arkansas Teacher Retirement System wants an attorney general's opinion on whether the system can legally collect millions of dollars from some retirees.
GA: Pumped-up pensions squeeze city Atlanta has been rocked by the deep recession of the past two years, like most cities. But the city has a huge financial problem caused not by the global downturn, but by its own leaders.
FL: Potential retirees play the numbers game No bad thing lasts forever, so it's nice to see that the state of Florida actually expects its employees will get pay raises again some day. Not next year. And not as much as had been predicted in previous forecasts by the Florida Retirement System.
The modern retirement plan: Cross your fingers (OpEd) I come in contact with the failure of America's retirement system at my local supermarket. That's where a corps of elderly gentlemen bag my groceries. After the bags are piled in the cart, they ask me with slackened faces if I need help to the car. It's always a mildly awkward question. I am far more agile, and we both know it. Without fail this thought enters my mind: What went wrong for them?
This week, we would like to call your attention to two items that aren't included as links within the News Clips. The first is that the October issue of the Monitor is available. To download the Monitor, please click here.
The second item is a notice that the Public Pension Coordinating Council Standards Program is now open for application. For more information and links to the online application, please click here.
US: Treasury Kicks Off Toxic-Asset Program The Treasury Department's long-delayed initiative to purchase toxic assets from financial firms launched Wednesday, nearly a year after Congress authorized the government to tackle what once was billed as the most critical problem facing the banking system.
KS: KPERS' long-term problem is fixable (Op-Ed) The Kansas Public Employees Retirement System is not bankrupt ("KU report: KPERS could see shortfall of $8 billion," Sept. 24 Local & State). Currently, there are more than $11 billion in assets being held by KPERS.
OR: Retirement system lost $13.3 billion in '08 Nearly everyone's investments lost money last year, and the Oregon Public Employees Retirement System was no exception. Figures released by consultants show the system's assets lost more than 25 percent of their value in 2008, or about $13.3 billion.
WA: Lawmakers warned of pension shortfall Washington lawmakers will have to double yearly payments in its two oldest pension plans to keep them solvent, That was the message state Actuary Matt Smith delivered this week to the Pension Funding Council meeting in Olympia.
CA: Retiree health care funds hinge on bill San Bernardino County's retirement board would be the first local agency in California allowed to take money from other agencies and invest it to pay for retiree health care under a bill awaiting Gov. Arnold Schwarzenegger's review.
NV: Ex-firefighters sue over cut in retirement Five retired Las Vegas firefighters are suing the city of Las Vegas and the public retirement system, alleging that officials broke a contract when their retirement pay was cut. According to the lawsuit, filed in state District Court this month, the Public Employees Retirement System changed the rules governing what counts as a retirement contribution after their retirements and subsequently reduced the firefighters' retirement pay accordingly.
NC: Treasurer imposes new travel expense policy State Treasurer Janet Cowell released new rules Tuesday governing travel reimbursements for employees who visit companies through which North Carolina's public pension funds invest money.
New pension-related news coming out of Congress leads off our links today. Representatives Earl Pomeroy (D-ND) and Pat Tiberi (R-OH) today introduced legislation that is expected to provide defined benefit pension funding relief. In the wake of the historic economic downturn, many employers face pension costs that are double, or more, of those in 2008. The Preserve Benefits and Jobs Act is expected to provide funding relief necessary to help restore defined benefit pension plans to soundness over time. While the legislation is aimed at shoring up private sector pensions it has not yet been determined whether the bill also could be used to help provide relief for public pension plans. NCPERS will continue to watch this legislation and will report on any new developments.
US: Two US Reps Offer Bill To Ease Pension Funding Requirements Two U.S. House of Representatives members put forth legislation Tuesday that provides additional pension relief and extends measures enacted by Congress last year that eased plan sponsors' required minimum contributions.
US: Pension Funds to Buy Gold as Insurance Pension funds will increase gold holdings to acquire "financial insurance," pushing prices higher as currencies drop, according to Shayne McGuire, director of global research at the Teacher Retirement System of Texas.
NV: PERS investments perk up at last Happy days apparently are here again for participants in Nevada's Public Employees Retirement System as its investments have soared in value by $6 billion since March. Ken Lambert, the PERS investment officer, said the system's investments now are worth $21.4 billion, up nearly 40 percent since they hit a bottom of $15.4 billion on March 6.
NY: Public pension sign-ups surge Public pension costs have drawn notice lately with their investment funds decimated by the Wall Street crash and Gov. David Paterson's push to institute a less-generous "Tier V" program for future employees.
MO: Pension board makeup unresolved Still agitating over police and fire representation remaining unchanged, Mayor Jim O'Neal and City Councilman Dan Chiles on Wednesday successfully lobbied for a council committee to take yet another look at the issue.
CA: CalPERS tweets back at 'misinformation' The California Public Employees' Retirement System wants to get its message out directly, so it launched a Web site that links to its social media posts on Twitter, Facebook and YouTube.
VT: Groups Join To Protect Pension System From Major Changes Two large groups have joined together to protect Vermont's public pension system from significant changes. But AARP-Vermont and the state's Teachers Association say some changes to the current system are needed.
Today's News Clips kick off with three lengthy stories that affect the national debate on health care and retirement security. The first is news that the Senate Finance Committee approved Chairman Baucus' health care bill, while the second is a call for ending 401(k)s as the primary retirement vehicle for America's workers. The third story is another one-sided affair on the pension "crisis", and stems largely from a recent report by PricewaterhouseCoopers that suggests within 15 years public systems will have less than half the assets necessary to pay out benefits.
US: Senate Finance Committee Approves Sen. Baucus' Health Care Bill Democrats on the Senate Finance Committee, with the vote of a lone Republican, approved Chairman Max Baucus' $829 billion health care bill 14-9, kicking off what's expected to be a long and arduous path through Congress for final legislation.
US: Why It's Time to Retire the 401(k) Retiree Robert Shively spends his days on the golf course. For many, that would be a dream come true, but not quite in the way Shively does it. The 68-year-old is the cart mechanic at the Niagara Falls Country Club.
US: Steep Losses Pose Crisis for Pensions The financial crisis has blown a hole in the rosy forecasts of pension funds that cover teachers, police officers and other government employees, casting into doubt as never before whether these public systems will be able to keep their promises to future generations of retirees.
CA: Limits on pension agents is now law Gov. Arnold Schwarzenegger has signed a bill clamping down on placement agents, the marketing middlemen at the heart of a multistate probe into corruption of public pension funds.
CA: Pension guru could have large payday The county retirement system's newest investment guru could earn as much as $4.51 million over the three years and three months of his initial contract, a review of public records shows.
NY: Two Plead Guilty In Pension Case A political power broker and an investment executive who advised government officials in several states have pleaded guilty to securities fraud in connection with a "pay-to-play" scandal at New York's public pension fund.
NY: Cuomo Announces Legislation to Reform State Pension Fund Attorney General Andrew M. Cuomo, along with New York Senate Majority Conference Leader John L. Sampson, Senator Brian X. Foley and Senator John Flanagan today announced new, bipartisan legislation that would replace the sole trustee at the New York State Common Retirement Fund with a board of trustees and eliminate pay to play in state public pension funds.
OR: Agencies brace for PERS rate hikes Local governments and agencies are measuring a looming new budget blow -- and hoping for mercy -- in the wake of a new report released by the Oregon Public Employees Retirement System.
In today's edition, a new study shows that nearly half of workers who change jobs each year cash out their 401(k) plans. And highlighting the disconnect between what retirement benefits rank-and-file employees and executives receive (otherwise known as "what's good for the goose isn't necessarily good for the gander"), our second story details the rise in value of pensions that top executives in the private sector can expect to see.
US: Half of workers changing jobs cash out 401k Millions of workers take a huge chance with their retirement savings every year: They cash out their 401(k) accounts when they lose their jobs or move to new employers.
US: Big Investors Grow Wary of Hedge Funds and Private Equity Less than two years ago, anything considered an alternative investment seemed to have an automatic cachet. Investors were shoving one another aside to get into the top hedge funds and private equity offerings.
CA: High court to hear San Diego pension case More than seven years after a fateful vote that ended a long session of the San Diego city pension board, the California Supreme Court on Wednesday will take up an unresolved question about that meeting: Was a crime committed?
IA: Iowa employees retirement board to consider changes An advisory panel for the Iowa Public Employees' Retirement System will meet today to decide whether to recommend changes to the system's contribution or benefit plans.
KY: New estimate cuts pension shortfall by $1.1 billion A recently released report on the Kentucky Retirement Systems contains a speck of good news: the multi-billion dollar shortfall facing the state employee pension plan is $1.1 billion less than originally forecast.
IL: Teacher Fund Confronts $35 Billion Unfunded Liability The pension system that provides benefits for 365,000 Illinois teachers, the 68th-largest such system in the U.S., has barely one-third of what it needs to pay promised benefits, a new actuarial report shows.
MT: Wall Street losses hurt Montana state pensions Montana's state pensions systems reeling from big losses in the stock market face a projected shortfall of more than $2 billion three decades from now.
This week's edition contains assorted pension stories from around the states, and one rather large story from the national level. So, instead of giving you the details upfront so you don't have to read the links, I'll instead let you know that the November issue of the Monitor is now available. To read about the issues NCPERS is working on in the Nation's Capital, please click here.
Lastly, please take a moment to remember and celebrate our nation's servicemembers, past and present, this Veterans Day.
US: Sweeping Health Care Plan Passes House Handing President Obama a hard-fought victory, the House narrowly approved a sweeping overhaul of the nation's health care system on Saturday night, advancing legislation that Democrats said could stand as their defining social policy achievement.
CA: Justices question pension conflicts The California Supreme Court sounded ready yesterday to end the prosecution of six former city of San Diego pension board trustees, a move that could shut down part of a long-running legal battle.
CA: Group again files proposed measure to reduce public pensions in California A public pension group has refiled proposed ballot measures that would create a mandatory second-tier pension system for new public employees hired by the state, counties, cities and other non-federal government agencies in California.
CA: Is It CalPERS' Turn to Clean House? The California Public Employees' Retirement System has long pushed companies to clean up their acts. Now the nation's largest pension fund is getting flak for its own governance practices.
IL: No benefit changes to be proposed by state pension task force Another task force on Illinois' massive state pension problems is set to wrap up its work next week, but it appears the group will not formally recommend changes to pension benefits as a way to save money.
FL: Pension system on the rebound The Florida Retirement System pension fund posted a 19 percent negative return for the fiscal year ended June 30. Improving financial markets for the quarter that ended Sept. 30 helped the fund recover some of its losses.
With nothing significant to comment on in this edition of the News Clips, we'll use this space for blatant advertising of our Annual Legislative Conference. The Conference will be held February 7-9, 2010 at the Hyatt Regency Capitol Hill in Washington, DC. To learn about how Congress and federal regulators affect public pension plans, register for the 2010 Annual Legislative Conference by clicking here.
OH/NJ: Marsh & McLennan Settles Pension Plans' Suit for $400 Million Insurance broker Marsh & McLennan Cos. Inc. will pay $400 million as part of a class action settlement filed five years ago by state pension plan administrators in New Jersey and Ohio in connection with a probe of the company's acceptance of contingent commissions.
TX: Teacher Retirement System has nearly halved its billions in market losses The state's $88 billion public school employee retirement system has recovered some of the staggering market losses it suffered this year but still needs billions more in gains to support retirements beyond 2040, officials said Friday.
LA: Plan to keep pension contributions flat faces legal hurdle The New Orleans City Council could soon face a precarious choice: either locate an additional $10.3 million for a city budget that already includes furlough days and parking meter increases or risk litigation.
NY: Pension fund rebounds, up $16B since May New York state's pension fund rebounded over the summer and fall behind an 18 percent rate of return on investments, state Comptroller Thomas DiNapoli said Monday. The fund was valued at $126 billion as of Sept. 30, the halfway point of the state's fiscal year. That's up $16 billion, or 15 percent, from values reported in May.
WV: Huntington Police, Fire Pension Issue Included in Special Session West Virginia Governor Joe Manchin on Friday, Nov. 13, issued the long awaited call for a special legislative session that among other items will address the pension funding issues of Huntington, Charleston and Wheeling.
As Social Security is the third rail of national politics, so are- to a degree- public pensions at the state and local level. However, whether based in fact or rooted in perceived political advantage, politicians are scapegoating pensions for current budget woes. As we head into 2010, be prepared for more of the same.
PERS: Barbour stirs hornet's nest One of the "third rails" of Mississippi politics has long been the state's Public Employees Retirement System.
Taxpayers to get bill for legislative perk The cost to taxpayers for legislators' pensions is projected to skyrocket by more than 460 percent in the next budget, in large part because of a benefit enhancement they quietly voted into law four years ago.
Madoff loss hits pension fund The Municipal Employees Retirement System of Louisiana lost at least $5 million to confessed swindler Bernard L. Madoff, officials say in a civil suit filed in Baton Rouge federal court against several financial and accounting firms.
State unions call for different pension options Vermont's two largest unions aren't buying what the state treasurer is selling. The Vermont State Employees Association and the Vermont chapter of the National Education Association have voiced major concern with the proposed modifications to their retirement pensions and benefits proposed by Treasurer Jeb Spaulding, who is also chairman of a commission created by the Legislature designed to find ways to curtail the rising costs.
Counties, cities may give more to pensions Local governments already worrying about their fiscal 2010-11 budgets got a bit of bad news this month, learning they'll likely have to spend more to underwrite their workers' future pensions.
LA analysts project $1-billion budget gap by 2013 Los Angeles could face a $1-billion deficit by the time Mayor Antonio Villaraigosa wraps up his second term in 2013, a dire forecast driven primarily by escalating employee pension costs and stagnant tax revenues, the city's top budget analyst said Wednesday.
US corporate and public plans up in Q3 The median corporate and public pension funds posted positive returns in the third quarter, with results of 12.1% and 11.7%, respectively, according to data compiled by Mercer.
Towns, schools to face pension increases Town and school officials in Southern New Hampshire can only hope the economy continues to improve since in a year and a half, they could face what one local leader calls "crippling" budget hikes.
Teachers' Contributions Stay Level The Arkansas Teacher Retirement System plans to hold the line on employer contribution rates despite a drop in investment income and a continuing rise in the number of retirees.
Taxpayers' pension tab starts to spike Pennsylvania's school districts will see their retirement costs increase by more than 70 percent next year as the first symptoms of the state's public pension crisis begin to be felt.
Pension funds seek alternatives in hunt for yield Large public pension funds in New York, California and Ohio are looking increasingly to alternative investments in hedge funds, private equity and emerging markets in a global hunt for yield, senior managers and trustees said.
Incoming New York City Comptroller to Rein in Costs One month before he takes office, New York City Comptroller-elect John Liu is gearing up for a wide-ranging review of city finances, from public pensions to schools to agencies.
Charter amendment would revamp San Francisco pensions San Francisco voters may soon have the opportunity to decide major changes to the city's pension and retiree health care systems - both of which have seen their costs skyrocket as the city grapples with consecutive years of major budget deficits.
Below are stories from around the country about public pensions. The final News Clips of 2009 will go out on December 22nd. Finally, we encourage you to sign up for NCPERS Legislative Conference in February 2010!
N.Y Raises Pension Requirements to Save $48 Billion New York state's pension program will raise the retirement age and financial contributions for new workers to save the state and local governments about $48 billion over 30 years.
Pension funds rethink strategies The two largest public pension systems in Arizona have seen their funding status drop. Both have changed their investment strategies and will require more money from employees, employers or both.
Cash infusion sought for IPERS Iowa's largest public employees' pension fund has rebounded sharply with the stock market's upturn, but officials still want to increase contributions from taxpayers and government employees to shore up the fund's finances.
States act to curb 'double dipping' States pummeled by the recession and heavy job losses are moving to bar government employees from "double dipping" -- the practice of collecting a pension and a paycheck at the same time.
L.A. venture capitalist pleads guilty Los Angeles venture capitalist and philanthropist Elliott Broidy pleaded guilty Thursday to charges that he paid $1 million in gifts to New York public pension officials to win $250 million in investment capital for his private equity fund.
The first five stories tell of invest gains at public plans as the market has enjoyed a bull market since the lows of March. In March the Dow closed at 6,547 and the S&P 500 closed at 684. Now, the Dow and S&P 500 are over 10,400 and 1,100 respectively. As long-term investors we know we shouldn't get too excited about where the market is on any given day. However, it feels far better to hear positive news that negative. Lastly, before we wish you a Happy Thanksgiving, don't forget to register for the NCPERS Legislative Conference held February 7-9, 2010 in Washington, DC. To register for the 2010 Annual Legislative Conference visit www.NCPERS.org/legconf. Happy Thanksgiving!
Stock market improves SD trust fund payouts With the stock market gains the South Dakota Retirement System's assets have gained 16.6 percent since July 1, a substantial improvement from the 20 percent it lost in the previous year.
Retirement System Records Gains The rising stock market has raised the value of the Arkansas Public Retirement System's investments.
MOSERS: State employees' retirement fund solid The Missouri State Employee Retirement System has taken some hits along with other investors during the economic downturn, but says its portfolios are solid and Missouri state workers' retirement funds are safe and doing well.
Mo. school retirement system posts 10.25% return The Public School and Education Employee Retirement Systems of Missouri (PSRS/PEERS) reported a 10.25 percent return on its investments for the quarter ended Sept. 30.
Florida to seek more disclosure on pension placement agents Investment companies bidding to advise Florida's $107 billion public pension fund, the fourth-largest in the United States, will have to disclose more about their arrangements with the middlemen known as placement agents under proposed rules.
Kansas Public Employees Retirement System (KPERS) There has been considerable discussion in recent months regarding the long term solvency of the Kansas Public Employees Retirement System. Glen Deck, Executive Director, provided an update to our Appropriations Committee in August of this year.
State's pension plan too expensive Although most of the attention to Gov. Haley Barbour's budget proposals this week has been on his controversial recommendations to consolidate universities and public school districts, there were other important elements tucked inside the 27-page document that have yet to get much attention.
Cities' Firefighters and Police Have $636M Unfunded A bill to relieve cities of some of the burden of their combined $636 million unfunded police and firefighter pension liabilities began making its way through the Legislature on Tuesday.
Brownsberger: Simplifying public employee pensions What's wrong with the public pension system? Above all, it's too complicated. Complexity creates abuses and inequities. It also makes the system hard to evaluate and undermines confidence in the system.
N.J. pension padding, again: A chance for Gov.-elect Chris Christie to send a message New Jersey's overfed political establishment gathers today in Atlantic City, where it will hear a speech from the governor-elect, Chris Christie. What a perfect opportunity for Christie to fire a bullet at them over pension abuses to signal that the party is over.
Oregon board juggles ways to lessen retirement costs Board members of Oregon's Public Employees Retirement System said Friday they are disinclined to change the system's rules to alleviate the impact of skyrocketing employer contribution costs in 2011.
Change public employee pensions For decades, New Hampshire lawmakers and employers alike saved money by shortchanging the retirement system that funds pensions and in some cases health care subsidies, for state, city, town and school district employees.
Investors push SEC on climate-risk disclosure Pension funds and other investors holding more than $1 trillion of assets renewed their call to U.S. regulators on Monday to require companies to disclose climate-related risks.
Local control: The city's real agenda may be financial The issue of local control of the St. Louis Police Department has burst on the scene again. Over the last several years, the city's administration has introduced legislation to return control of the department to the city, publicly saying there would be no attempt or desire to seek local control of the Police Retirement System of St. Louis.
