Thursday, March 15, 2018

3/15 edition, Pension Issues in the News

MARCH 15, 2018

MINNESOTA NEWS + OPINION


Woodbury Bulletin
The core functions of government need to operate efficiently. We've seen here in Minnesota and elsewhere that neglecting the basics can have serious repercussions. This year we need to shore up our outstanding pension obligations. To ignore those responsibilities puts retirees and their families at ...

Center of the American Experiment
The Teachers Retirement Association (TRA), which manages pensions for the majority of teachers in Minnesota, told legislators last month that it wanted to drop its assumed rate of return from 8.5 to 7.5 percent. TRA is the last public fund in the entire United States to assume its assets can earn 8.5%.

Minneapolis Star Tribune
Both DFL and GOP legislators said they need to adapt the state tax code to federal changes, fix the vehicle licensing and registration system, improve school safety and address underfunded public employee pensions. This legislative session will likely include many debates over how exactly to address ...
MinnPost
Lawmakers are also dealing with the state's problem-plagued licensing and registration system, which could need up to $43 million in emergency funding to get back on track. There's also a desire to shore up the state's obligations to its pension plan holders. A pension bill currently under consideration ...


NATIONAL NEWS + OPINION
Madison.com
Retired public employees across the state who participate in the Wisconsin Retirement System will get bigger pension checks, starting May 1. All 203,000 retirees in the Wisconsin Retirement System (WRS) are due for a 2.4 percent increase in their payments from the Core Trust Fund, the main fund, the ...

Business Wire (press release)
“The business intelligence provided by the 164 study participants supports efforts by the public pension community as a whole to comprehend and analyze challenges and find opportunities for steady improvement,” Kim said. Pension plans can access the study in “dashboard” format, enabling them to ...

Colorado Public Radio
A legislative committee will take its first pass at Senate Bill 200, 57 pages of dense public policy meant to majorly overhaul Colorado's Public Employee Retirement Association, the state's pension fund. There are bipartisan sponsors, and yet, even as lawmakers unveiled the bill, they acknowledged it ...

New Haven Register
The pension discussion came at the end of the first public hearing on the city's fiscal 2019 $547 million budget proposal that represents a 1.52 percent increase over the current year and an 11 percent hike in the tax rate to 42.98 mills. The proposed capital fund is $79 million. Acting Budget Director ...

Scranton Times-Tribune
A new Economic Policy Institute study by Jeffrey Keefe, a Rutgers University professor emeritus, finds that Pennsylvania's public school teachers earn 6.8 percent less, even after accounting for pension benefits, than similarly educated and skilled workers in the state. Looking to the future, Keefe finds that ...

Watchdog.org
The Nevada Policy Research Institute (NPRI) has been battling the state since 2015, but the legal battle began in 2011 when the Reno Gazette-Journal (RGJ) filed a lawsuit after its request was denied to receive copies of PERS records documenting public pension recipients and their benefits. Carson ...

Seattle Times
By comparison, the state's pension funds' largest single stock holding is $573.3 million in Apple, a 1.65 percent stake of total public-equity investments for Washington retirement plans. Olin Corp. licenses the production of Winchester firearms and it manufactures ammunition. Sturm, Ruger & Co. makes ...

Yankee Institute (blog)
Education savings accounts get a public hearing, drawing local and national experts ... Connecticut also faces a growing crisis in its teacher pension system. The costs of teacher pensions is projected to grow from $1.2 billion per year to potentially $6 billion per year and represents one of the fastest ...

Chief Investment Officer
Oregon Gov. Kate Brown has signed into law a bill that establishes two funds to help the state's schools and other public employers cover growing public pension costs. One of the funds would receive the majority of the money, as much as several hundred million dollars by some estimates, which would ...

Michigan Capitol Confidential
For the first time in eight years, the state of Michigan put more money into its public schools employees' pension fund than accounting rules require. Contributing less than that in most years is how a pension funding shortfall has grown large. The state contributed $2.4 billion to the Michigan Public ...

Chicago Sun-Times
Without big public pension funds, such as those in Illinois, investors would lose leverage. They could expect to see their savings gain less value over time. Only money managers and others in the financial class would be happy about that. Yes, Illinois has a big pension problem. Massively underfunded ...

Hartford Courant
27, to learn about the pension and health insurance crisis facing retired teachers in the state. The event was ... Active teachers saw a one percent increase in their pension contribution as of Jan. ... Alice Deloge worked in several jobs before she started teaching in the Killingly public schools. She was ...

New York Times (blog)
For example, the nation's largest traditional pension, the California Public Employees' Retirement System, known as Calpers, has 1.9 million members and over $300 billion in assets. When it calls up an investment manager to complain about performance, or to dump that manager, or when it calls a ...

Pensions & Investments
Responding to an inquiry from a state senator on how much the $34.2 billion Connecticut Retirement Plans & Trust Funds had invested in gun companies and the process to divest, Denise L. Nappier, state treasurer and sole trustee of the retirement plan, said she is in the process of engaging with gun ...

Pensions & Investments
"Rather than bundling public equity separately, they're bucketing them together in a broader movement around outcomes." And matching liabilities is no longer just associated with corporate defined benefit plans. J. Tyler Cloherty, Darien-based senior manager at Casey Quirk, said public pension funds ...

www.businessgreen.com
They must also review ethical and environmental risks to their investments at least every three years under existing pensions regulations, Opperman explained. "Given that there is a broad scientific and public policy consensus that climate change is such a risk, then trustees already have a duty to take ...

Wall Street Journal
Public pensions, often the target of political pressure, increasingly invest with an eye toward the public scrutiny that can come with exposure to certain companies or industries. They also face criticism that holding stakes, even small ones, in firearms makers could make them complicit in gun violence.

Crain's Detroit Business
As of this week, Michigan's public employees no longer own gun shares. The State of Michigan Retirement System, which manages $70 billion in pensions for educators, police and other public employees, on Monday sold its holdings in chemical company Clayton, Miss.-based Olin Corp. (NYSE: OLN) ...

New Haven Register
Donald Williams, executive director of the Connecticut Education Association and a former president of the state Senate, said one of the recommendations he did agree with is the plan to use proceeds from lottery solely to fund teacher's pensions. But Williams said other recommendations take “away the ...

CNBC
The world's largest asset manager details its approach to the gun industry in a three-page letter in response to overwhelming customer interest. BlackRock says it is showing customers options for changing their investments to exclude stocks of gun makers and is considering new funds that don't invest ...

Reuters
NEW YORK (Reuters) - New Jersey's treasurer said on Thursday she will increase the expected rate of return for the state's struggling public pension system from 7 percent to 7.5 percent, then lower it again over time. The switch to a higher assumed rate means that the state, and participating local ...


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