NCPERS News Clips

September 21, 2010

News Clips for September 21st, 2010

• 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.
• States Cutting Public-Sector Retiree Pensions
  At Least 20 States Have Rolled Back Benefits or Are Considering Doing So for Current Employees, People Already Retired
• 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."