State and local governments can expand access and slash electric bills by simplifying slow, expensive permitting processes.
States and localities rely on the regularity and reliability of federal data. Disrupting it undermines everything from pensions to budgets and threatens public trust in government.
State and local retirement systems should collaborate to develop an AI-powered digital assistant to help government employees make better financial decisions throughout their careers. Hand-me-downs from the private sector won't cut it.
The state’s Roth IRA program has signed up more than 20,500 employees and will soon mandate employer participation if no other plan exists.
Are vehicles like private equity, crypto and real estate a good fit for 401(k)-style public retirement plans — or too risky for savers? Marketers will soon be pitching these “alternative investments” to public employers. Prudence dictates caution.
Pension funds enjoyed enormous stock market returns during the pandemic but slower gains and underfunding has increased their liabilities.
So far, 20 states have created retirement programs for private-sector workers.
The latest technology revolution will eventually eliminate some of the public funds’ internal staff. To avoid being AI roadkill, pension systems and key employees need to take the initiative collectively.
Traditional pensions and 401(k)-style government plans have undergone major changes in portfolio structure since 2000, mostly for the better. But recent market gyrations remind us that there are always opportunities for improvement.
AI’s rapidly advancing offspring will benefit portfolio managers as ever-more-intelligent systems drive better investment results. But that’s just the start.
As 2024 came to a close, the White House and Congress approved big giveaways to two subsets of state and local government employees and pensioners. There could be political backlash, and for equity’s sake there might be a case for some corrective tax policies.
Recent laws to improve pension financing should save states tens of billions of dollars over the long term.
The taming of inflation was the main financial story. Bond and capital markets were cooperative, even if voters upset about property taxes were not. Governors, mayors, finance directors and pension pros may soon look back wistfully at 2024’s business-as-usual atmosphere.
A bill would allow more public employees to shift out of 401(k)-style plans into more traditional pensions, which could help with recruitment. But critics say costs are a reason the state has moved away from such plans for decades.
Fitch Ratings issued a report comparing the pension debt in each state to personal income. Connecticut had the highest ratio, at 23 percent, while Tennessee was the best at 1 percent.
His second presidency could recolor the landscape for federal spending, with ramifications for states, local governments, schools and public pensions. Governors and mayors will need to try to discern where the political wind is blowing — and what to watch out for.
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