29 08, 2017

Vast majority of public employees choose DB over DC where option is available

2017-08-29T17:13:32-07:00August 29th, 2017|Categories: Defined Benefit Plans|Tags: |

Most public sector employees with the option of participating in a defined benefit plan or defined contribution plan choose the DB plan, said a report released Wednesday by the National Institute on Retirement Security and Milliman. Among the seven states studied where employees are offered both options, DB plans were picked up by 75% or more of employees hired in 2015. In fact, from 2006 through 2015, DB pickup rates have been 70% or more every year for new [...]

22 04, 2015

Roger Melanson offers new pension deal for civil service retirees

2015-04-22T17:08:02-07:00April 22nd, 2015|Categories: Pension Reform|Tags: , , |

The Liberal government has given public service retirees a new pension offer, Finance Minister Roger Melanson announced on Monday. No details were released, but Melanson told reporters on Monday the proposed plan addresses two key concerns of retirees — protecting the base of their pension and cost-of-living increases. Melanson says he is hopeful the retirees, who launched a lawsuit last June over the switch to a shared-risk model, will accept the offer. […]

11 02, 2015

Pension plans, once inviolable promises to employees, are getting cut

2015-02-11T18:59:43-08:00February 11th, 2015|Categories: Pension Funding|Tags: |

Tax revenue is up, home foreclosures are down, and, after a long absence, robust economic growth has returned to this sprawling city. But as far as municipal workers here are concerned, it feels as if the bad times never left. Police and firefighters are on the verge of seeing their retirement benefits cut. Other city employees are certain to be next.  […]

10 02, 2015

Turning Illinois public employee pensions into a 401(k)-style system is a bad idea

2015-02-10T22:52:36-08:00February 10th, 2015|Categories: Defined Benefit Plans|Tags: , , |

Illinois public employee pensions shouldn’t be lost to politicians’ bad judgment. It’s not just basic finance, it’s common sense: A large pool of money invested by professionals will yield far greater returns than small, separate accounts managed by individuals with no professional training in finance. So why do some think that ending Illinois’ defined benefit pension system and moving workers into privatized, 401(k)-style accounts is a good idea? […]

31 03, 2014

Public Pension Plans Looking To Alts To Meet Goals

2014-03-31T20:40:59-07:00March 31st, 2014|Categories: Defined Benefit Plans|Tags: , , , |

A full 71% of public pension plans are looking to alternative assets to meet their goals in a rising interest rate environment, according to new study sponsored by Prudential. The survey on de-risking defined benefit pension plans found a significant shift in asset allocation, particularly among plans that are underfunded. “While we’ve seen a closed plan switch to fixed income, open plans are very much looking to alternatives as results for this survey clearly indicate,” said Dan Tremblay, director [...]

14 03, 2014

Pension scheme membership reaches turning point

2014-03-14T23:30:27-07:00March 14th, 2014|Categories: Defined Benefit Plans|Tags: , , |

Figures published by the Office for National Statistics today mark a historical turning point for membership of workplace pension schemes, according to Towers Watson. The pensions tables from the ONS’s Annual Survey of Hours and Earnings 2013 also highlight that public sector employees are almost ten times more likely to be in defined benefit schemes than private sector employees are. Automatic enrollment making pension saving the new norm After sinking to a historical low of 32 per cent in [...]

13 03, 2014

Cranley pension plan:
‘Brilliant’ or Band-Aid?

2014-03-13T22:08:33-07:00March 13th, 2014|Categories: Pension Reform|Tags: , , , |

If Cincinnati finally solves its thorniest financial problem – its employee pension fund – it will be because of the collision of a good idea, willing “adversaries” and deadline pressure. Mayor John Cranley on Tuesday proposed asking the federal courts to oversee a consent decree to stabilize employees’ retirement and health benefits without putting the city at financial risk. The city manager would be authorized to enter binding negotiations with current employees and retirees that would result in reduced [...]

21 01, 2014

The Reforms That Public Pensions Really Need

2014-01-28T22:51:06-08:00January 21st, 2014|Categories: Pension Reform, Retirement|Tags: , |

A new report out of the Rockefeller Institute of Government paints the darkest picture of issues surrounding public-employee pensions I have ever read. But unlike so many reports brimming with dire warnings about pensions, Strengthening the Security of Public Sector Defined Benefit Plans isn’t anti-government-employee or anti-union and, as its title suggests, it isn’t yet another call for converting all defined benefit plans to defined contribution. Authors Donald Boyd and Peter Kiernan argue forcefully that public pensions are a societal value [...]

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