16 11, 2020

As public pension costs soar, some Southern California agencies turn to controversial borrowing to fill deep holes

2020-11-16T09:55:34-08:00November 16th, 2020|Categories: Pension Funding|Tags: , , , |

The little agency responsible for killing mosquitoes and rats in the Coachella Valley will see its bill for worker pensions nearly triple over just four years. Payments will also nearly triple for Cal-OPTIMA, Orange County’s health care system for low-income people, seniors and those with disabilities, as well as for the Los Angeles Memorial Coliseum Commission, the folks who bring events to the historic stadium in Exposition Park. They’ll more than double for the Orange County Transportation Authority, which [...]

6 11, 2020

51% likely to review or reduce pension contributions due to Covid-19 pandemic

2020-11-06T11:39:36-08:00November 6th, 2020|Categories: Pension Funding|Tags: , |

Approximately half (51%) of UK savers are likely to review or reduce pension contributions in favour of short-term saving or debt reduction or elimination as a result of the Covid-19 (Coronavirus) pandemic, according to research by BlackRock. Its Defined contribution (DC) pulse survey, which surveyed 1,000 UK savers, also found that 76% agree that they need to be more careful about their financial future, although a further 44% see retirement saving as important. However, more than half (51%) said [...]

6 11, 2020

10 Ways to Close Public Pension Funding Gaps

2020-11-06T11:25:39-08:00November 6th, 2020|Categories: Pension Funding|Tags: |

The best way to close public pension funding gaps, according to the National Conference on Public Employee Retirement Systems (NCPERS), is to reform state and local revenue systems and close tax loopholes. “But that is a long road, and it is beyond the scope of responsibilities of pension trustees and administrators,” NCPERS said in a recent research paper called “Ten Ways to Close Public Pension Funding Gaps.” “However, we can help ensure that state and local governments are looking [...]

14 10, 2020

New York Times inks deal to transfer $235 million in pension liabilities

2020-10-14T11:33:16-07:00October 14th, 2020|Categories: Pension Funding|Tags: , |

New York Times Co., New York, entered into an agreement with Massachusetts Mutual Life Insurance Co. to purchase a group annuity contract to transfer about $235 million in U.S. pension plan liabilities. The contract will transfer the benefit payment responsibilities for about 1,850 retirees and beneficiaries in the New York Times Cos. Pension Plan to MassMutual, according to an 8-K filing Tuesday with the SEC. The transaction, which the company expects to finalize in early 2021, will be funded [...]

29 09, 2020

State increased public pension assets despite pandemic

2020-09-29T12:41:56-07:00September 29th, 2020|Categories: Pension Funding|Tags: , , |

Indiana’s public pension funds for state and local government employees, including teachers, has apparently weathered the financial markets’ volatility during the coronavirus pandemic, new data from the state show. The General Assembly’s Pension Management Oversight Committee heard Wednesday that the Indiana Public Retirement System increased its pension assets by 2.56% to $30.6 billion during the 2020 budget year, which ran from July 1, 2019, to June 30, 2020. According to INPRS, the state’s prepaid pension programs were 90.6% funded, [...]

3 08, 2020

California Supreme Court forbids pension spiking, but upholds other retirement protections

2020-08-03T11:59:28-07:00August 3rd, 2020|Categories: Pension Funding|Tags: , |

The California Supreme Court on Thursday ruled against public employee unions that were trying to beat back part of former Gov. Jerry Brown’s pension overhaul law. The court’s ruling prohibits so-called pension spiking, a strategy in which county public workers took extra shifts, worked odd hours at higher pay or cashed out accumulated leave at the end of their careers to inflate their pensions in retirement. The Alameda County Deputy Sheriff’s Association filed a lawsuit in 2012 over Brown’s [...]

9 07, 2020

Pension plans see rebound in second quarter

2020-07-09T14:59:45-07:00July 9th, 2020|Categories: Pension Funding|Tags: , |

The funding status of the largest corporate pension plans in the U.S. have rebounded during the second quarter of 2020, due to improvements in the equity and bond markets, according to Willis Towers Watson data. “The first quarter was a more difficult quarter for the equities,” says Joseph Gamzon, senior director of retirement at Willis Towers Watson, a global advisory, broking and solutions company. “For most pension plan sponsors the combination of the equity markets performing well and the [...]

10 06, 2020

Pandemic Puts More Stress On Struggling Pension System

2020-06-10T14:54:52-07:00June 10th, 2020|Categories: Pension Funding|Tags: |

The coronavirus outbreak has presented daunting challenges for an already-struggling multiemployer pension plan system. It's also amplifying calls for Congress to step up and pass legislation to protect against millions of retirees losing their financial livelihood. More than a hundred multiemployer pension plans covering over a million workers and retirees were on the ropes even before COVID-19 became a household term, and that number could more than double depending on how the pandemic plays out, according to a letter [...]

6 05, 2020

Protecting pensions after coronavirus

2020-05-06T14:49:06-07:00May 6th, 2020|Categories: Pension Funding|Tags: , |

Unions and pension schemes are being supportive of employers struggling with the pandemic. When the recovery starts that support should be repaid. Across the whole economy, employers are under unprecedented strain as they deal with lockdown and economic contraction. Companies with defined benefit pension schemes could face particular short-term pressures, as turmoil in financial markets may increase deficits – the gap between the assets a scheme has and the pensions it must pay – at exactly the time they are [...]

3 04, 2020

Coronavirus Is Making the Public Pension Crisis Even Worse

2020-04-03T15:14:13-07:00April 3rd, 2020|Categories: Pension Funding|Tags: |

For years, the country’s public pension plans have faced a yawning gap between what they owe and what they can pay. From the State of California’s public employees’ retirement plan, with more than 1.6 million participants, to tiny funds for employees of local mosquito-control programs in Illinois, public pensions are the time bomb of government finance. Now the coronavirus pandemic has it ticking faster. Already chronically underfunded, pension programs have taken huge hits to their investment portfolios over the [...]

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