Public Employee Pension Systems
The University of California (UC) Board of Regents on Nov. 19 debated whether it will raise tuition by up to 5% in each of the next five years. One of the reasons, reports the Sacramento Bee, is to address $7.2 billion in unfunded university pension plan liabilities. The pension fund already is a...
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Atlanta, Ga. and Jacksonville, Fla. are both in the southeast, both face fiscal pressures over their public pension systems like many other cities, and both have been taken to court over their attempts to ameliorate that stress. But the similarities end there — the courts took different tacks in...
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Major cities in disparate corners of America provide a fresh — and stark — illustration of how widespread public pension funding shortfalls are. Pittsburgh, Pa. and Phoenix, Ariz., locations that could not be much more opposite geographically, are among those grappling with this troublesome matter...
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In a settlement agreement described as “miraculous” by the federal bankruptcy judge that approved it, and made possible because of a pension settlement and a “grand bargain,” the City of Detroit now begins its exit from bankruptcy. For Detroit’s Police and Fire Retirement System (PFRS) retirees,...
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Though markets averaged a 7.45% return from 2004-2012, unfunded liability of public pension funds tripled — to just under $2 trillion — over that same period, according to a recent Moody’s report. Along with trying to recover from the recent recession, public entities are simply not providing...
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Americans held $6.6 trillion in all employer-based DC retirement plans on June 30, 2014, of which $941 billion was held in 403(b) plans, and another $255 billion in 457 plans. Those figures are up from $6.4 trillion, $922 billion and $248 billion, respectively, as of March 31, 2014, according to...
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Republican Sen. Orrin Hatch (R-Utah) introduced the Secure Annuities for Employee (SAFE) Retirement Act (S. 1270) last year to reform the public and private pension systems and, amid recent retirement reform hearings on Capitol Hill, his public pension reform idea is now getting noteworthy support...
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The Federal Reserve’s 2013 Survey of Consumer Finances (SCF) shows mixed results concerning 403(b) plans. The SCF finds that overall, while retirement plan participation remained relatively flat over the past three years, the median and average value of those retirement plan accounts rose “...
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Prospects for state and local employees’ financial security in retirement are better than that of their private-sector counterparts, according to a new paper from the National Association of Government Defined Contribution Administrators (NAGDCA). Nonetheless, the paper argues, steps still...
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The U.S. District Court of the District of Minnesota in its ruling in The City of Farmington Hills Employees Retirement System v. Wells Fargo Bank, N.A., Civil No. 10-4372 DWF/JJG (U.S. District Court of the District of Minnesota) has granted final approval of a $62.5 million settlement in a...
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Fitch Ratings says a recent decision by the board of the California Public Employees' Retirement System (CalPERS) will raise funding pressures on public employers. The Sacramento Bee reported that staff at CalPERS, the nation’s largest public pension plan, recommended that the fund’s board...
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The 2014-15 budget that North Carolina Gov. Pat McCrory (R) signed into law does more than fund state functions: it also expands state control over state pension fund investments. PI Online reports that the budget provides for 10 new investment staff positions. North Carolina Treasurer Janet...
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The Securities and Exchange Commission (SEC) on Aug. 11 announced securities fraud charges against the state of Kansas, claiming that the state failed to disclose that the state’s pension system was significantly underfunded, and the unfunded pension liability created a repayment risk for...
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New Jersey Gov. Chris Christie (R) on Aug. 8 appointed nine members to a non-partisan commission to make recommendations regarding how to reform New Jersey’s public pension and health benefit systems. Never averse to taking bold action on a tough issue, Christie said in a press release that he...
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State and local pension plans’ investments showed robust growth for the 12-month period that ended June 30, Wilshire Associates reports. These plans’ investments showed median growth of almost 17%, the strongest growth since fiscal year 2011. The growth was fueled in large part by the...
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Citing a need to ensure sustainability of public pensions, New Jersey Gov. Chris Christie (R) on Aug. 1 announced the formation of a commission that will include study of the state pension system and how to reform it. This is necessary, Christie said, to ensure that the system is sustainable....
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NTSA has established the Task Force on Retirement Savings Plans, a new committee designed to help lead and guide the discussion and development of policy regarding the automatic enrollment of employees in non-ERISA retirement savings plans. Among the functions the new task force will perform is to...
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NTSA has established the Task Force on Retirement Savings Plans, a new committee designed to help lead and guide the discussion and development of policy regarding the automatic enrollment of employees in non-ERISA retirement savings plans. Among the functions the new task force will perform is to...
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California Public Employees Retirement System (CalPERS) Board members are required to receive 24 hours of financial training every two years under a law just enacted. Gov. Jerry Brown (D) on July 18 signed into law AB1163, a measure Assemblyman Marc Levine (D-San Rafael) introduced to enhance...
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Detroit may well be the poster child for municipal pension irresponsibility (though if there were an award for that, it would be extremely competitive). But give credit where it’s due: the Motor City has also been a model for how to dig out of the public pension hole. Kevyn Orr, the city’s...
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