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.
The State Employees’ Retirement System has sunk to $34.5 billion, a quarterly decrease of 8.5 percent. The system funds more than 70,000 older state and public school retirees with pension payments that haven’t changed since 2004.
An audit found that Massachusetts’ third largest city has made progress with the debt in its employees’ pension system, with 39 percent of future obligations covered. But there is still a long way to go to reach solvency by 2033.
Private equity interests have lurked behind the skirts of public pensions to dodge higher income taxes. Now Big Tech moguls are trying to play public servants for patsies to fight stronger federal antitrust laws.
An estimated 54 percent of older women and 45 percent of older men who live alone have incomes below what is needed to pay for essentials. The financial effects of COVID-19 and the rising cost of living are to blame.
Financial experts say the Florida governor’s ban on so-called “woke” investment policies that consider “environmental, social and governance” issues may affect pensions for state retirees. But others disagree on the ban’s impact.
With government workers’ pay raises lagging the private sector’s, state and local officials will need to navigate through different measures of inflation to fairly calibrate wage and pension increases.
The U.S. Census Bureau found that nearly half of adults ages 55 to 66 had no personal retirement savings in 2017. But a state-sponsored private retirement auto-IRA savings program could give many retiring Kansans a break.
A long-running lawsuit alleging collusion in the securities lending industry may be heading for class-action status. That could be a big deal not only for pension funds nationwide but also for the future of a $2.5 trillion marketplace.
A new law requires the state’s pension system to divest from fossil fuel companies, but making that happen while considering a constitutional requirement to pension members will complicate the process.
If stocks keep declining, the outlook for pension obligation bonds improves. State and local financial teams should prepare now for a cyclical opportunity.
If autocracy is moving the world toward deglobalization, geopolitical investment principles should complement environmental, social and governance factors. There’s a lot for pension boards and investment managers to keep in mind.
A Pew analysis finds that a third of states lost residents in 2021. Analysts are debating whether these shifts and slowing population growth rates throughout the country really are signs of “demographic doom.”
Employees are 15 times more likely to build retirement savings if they have automatic payroll deductions at work, according to AARP. But such plans don't exist for about 55 million American workers.
Many want to sanction Putin and Co. at every turn, but it’s a mistake to move too quickly. Pension funds actually don’t hold that much in Russian assets, and they're sitting ducks for crafty, amoral traders.
The state’s investment in companies in Russia and government debt issued by Russia amounts to $218 million, less than half of 1 percent of the state’s total retirement funds, and has been in decline since 2014.
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