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.
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.
After a decade of increasing popularity among endowment funds and pensions, its use in investment decisions is coming under increasing political attack. Financial analysts — and perhaps AI — may be able to point the way to a safer middle ground.
Millions are falling behind on their retirement goals. There are proven policy solutions at the state level, and federal policymakers could build on those to help all workers save what they will need and reduce the burden on taxpayers.
Wayne County, Mich., nearly filed for bankruptcy in 2014. It just posted its tenth budget surplus in a row.
Milwaukee County Executive David Crowley convinced the legislature to allow localities to raise taxes. That helped his county address longstanding pension debt.
The state Capitol’s pension debt clock acted as a reminder for the last eight years of how much taxpayers were on the hook to pay. But now the state’s retirement system is fully funded and the digital clock has gone dark.
The major public funds have almost doubled their investments in high-fee, nontraditional vehicles, and important new research shows how costly it’s been. It’s a wake-up call for greater scrutiny of fee structures and consultants' assumptions.
Homeowners are being squeezed out of affordable coverage. Sustainable intergovernmental partnerships with the insurance industry offer a solution. And there may be a role for state and local pension funds.
Chris Ailman, the chief investment officer for the giant California teachers’ pension fund, is retiring. He showed the way in navigating a landscape of complexity, hazards and challenges to achieve steady investment success.
Since the Great Recession, states have moved to reform their public pension plans, making tough choices and frequently doing so with bipartisan support. Federal lawmakers should keep these lessons in mind.
With most public retirement systems seeing improved actuarial funding levels, there’s an opportunity to offer options that could make government compensation more competitive. But any impetus for change should come from pragmatic public employers, not partisans or lobbyists.
Research shows that traditional defined-benefit plans still play a key role in attracting and retaining government employees. To maximize these benefits’ impact, employers need to make sure their workers understand them.
Research shows that traditional defined-benefit retirement plans aren’t a path to improved recruitment or retention. When it comes to younger workers in particular, policymakers need to accept the new reality.
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