NCPERS News Clips

6/23/2009

Fade Away

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.
• California pension fund to vote against Bank of America's board
  The California Public Employees' Retirement System, or CalPERS, says it will vote against re-electing all 18 Bank of America board members, including CEO Ken Lewis.
• 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.
• Editorials inaccurate, just more union-bashing
  On June 11 and 14, the editors at the NCT have used inaccurate information to further their liberal bias against public employees.

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