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.
Attractive investment returns could accompany economic development if local public pension systems join forces with angel investors to capitalize on a marketplace void.
The expansion of the Deferred Retirement Option Program will allow career government workers and educators to draw pensions while continuing to work for eight to 10 years but will cost the state an additional $350 million annually.
Hackers managed to break into CalPERS and CalSTRS, the two California retirement systems, and have stolen Social Security numbers, birth dates and other sensitive information for 769,000 retirees. The attack came from a breach in a contractor’s cybersecurity system.
The Democrat-controlled Senate approved the budget with a 34-22 vote on Thursday evening, which will allocate an additional $100 million to higher ed, $85 million for homelessness and $200 million toward pension plans.
Income tax and sales tax revenue projections are slipping. State and local policymakers need to avoid fiscal giveaways and gimmicks, and they need to beware of potential federal aid clawbacks.
The last two state budgets included full payments to the pension fund of roughly $7 billion each year, the first time that’s been done in a quarter century. The Democratic governor’s latest budget proposal includes another full payment of $7.1 billion.
Culture wars over environmental, social and governance factors used by pension fiduciaries are in the spotlight, but it’s the municipal bond arena where long-term analysis must trump short-term symbolic politics. Sustainability actually matters to investors.
A proposed bill would allow all police and firefighters enrolled in the state’s pension system an option to retire early with a reduced pension after 20 years of service. Opponents warn it could burden taxpayers.
The 2022 stock market plunge has taken a toll on some of the nation’s largest state and municipal pension funds, making it harder to pay for future retirement benefits to millions of K-12 teachers and other public employees.
As polluters pay up for absolution, state treasuries and public pension funds might be able to capitalize on carbon offset credits. Public forests and timberland investments could yield untapped value.
Officials in Kansas and Missouri worry that a federal default could severely disrupt a variety of government services that could cause local layoffs, jettison retirement funds, restrict Medicaid access and more.
So far, nine Democrats have officially declared their intention to run for the mayorship. Meanwhile true bipartisan leadership exists at the state level, Ohio's attorney general does double dipping and more.
Disinflation and economic deceleration will dominate state and local budgets and investments. Cash is king, at least for a while. Payroll costs will outrace revenues. It’s going to be a year for muddling through.
Inflation punished Wall Street and Main Street, and public financiers who ignored it squandered billions. Congress passed two bills important to states and localities. And pensions took a hit, but taxpayers won’t feel that pain for years.
When the governor-elect was serving as Montgomery County commissioner, he streamlined the county’s half-billion-dollar retirees pension plan. Some wonder if the state’s retirement plan will get a similar redo.
Most Read
-
Future in Context
