16 03, 2015

Nevada PERS a model for nation; don’t change it

2015-03-16T21:24:10-07:00March 16th, 2015|Categories: Pension Reform|Tags: , |

Imagine that your bank advised you to refinance your mortgage. Except that instead of enjoying lower monthly payments and reducing the debt on your home, your mortgage payments will increase and your overall debt will skyrocket. That’s a bit like the conversation that lawmakers in Carson City are having over the future of the Nevada Public Employees Retirement System, the mechanism by which the Silver State’s teachers, firefighters, police officers and other employees earn a modest, but secure retirement [...]

20 06, 2014

Detroit Rolls Out New Model: A Hybrid Pension Plan

2014-06-20T16:31:06-07:00June 20th, 2014|Categories: Retirement|Tags: , |

In the face of Detroit’s tumultuous bankruptcy proceedings, in which multiple parties are quarreling to protect their interests, the city and its unions have quietly negotiated a scaled-back pension plan that could serve as a model for other troubled governments. One of the most closely watched issues of the case is whether a government pension plan can be legally cut in bankruptcy. Detroit, saddled with a pension system it cannot afford, has introduced a new plan with the cooperation [...]

29 05, 2014

Hybrid pension plan for school, state employees projected to produce $11 billion in savings over 30 years

2014-05-29T21:17:39-07:00May 29th, 2014|Categories: 401(k), Defined Benefit Plans|Tags: , , |

A proposed pension reform plan that would change the design of the state and school employees’ retirement plans would eventually erase the pension systems’ $47.5 billion debt and introduce a mandatory 401k-style retirement-savings plan for new public employees. The hybrid defined benefit-defined contribution plan would produce a projected $11 billion of savings in taxpayers’ contributions to the systems over the next 30 years, according to an independent actuarial study commissioned and approved by the Public Employees Retirement Commission this morning. Other [...]

15 05, 2014

Ottawa’s target benefit pension plan worth a closer look

2014-05-15T21:22:25-07:00May 15th, 2014|Categories: Defined Benefit Plans|Tags: , , |

In a recent speech in Toronto, Kevin Sorensen, Minister of State for Finance, introduced details of a new “hybrid” pension plan proposed for all federal workers and other corporations under federal pension regulation. He referred to these proposed plans as Target Benefit Pension Plans. One can understand Target Benefit plans more easily by reviewing the existing polarized options for pensions in Canada: defined benefits (DB) plans (common among the public service) and defined contribution (DC) plans (common in the [...]

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