UPFFA |

It is critical that the STRS Ohio Retirement Board balance the interests of current retirees with the need to maintain the fund for young teachers who may be receiving retirement benefits into the next century. Read more

Retirement Benefit Changes Could Help Fix Alaska’s Teacher Retention Problem

The issue of teacher shortages is a problem plaguing schools and communities across the nation, and one that is reaching crisis levels. Read more

National News

Pension Funds Appear Unfazed by Potential US Default

Among public pension plans (assets: $5.6 trillion), equities are almost 43%, fixed income (the bulk of that in Treasury bonds) 21% and cash 2%. All of these asset classes are extremely liquid. Read more

Paying Managers of Complex Portfolios: Evidence on Compensation and Performance from Endowments

New research suggests that endowment compensation outcomes are more effective in attracting, motivating, and retaining talent compared to public pensions, which are subject to more politicized governance and regulation. Read more

Public Pension Funded Ratio Ticks Up to 74.8% at End of April, Showing Modest Improvement

During April, the Milliman 100 PPFI funded ratio rose from 74.5% at the start of the month to 74.8% as of April 30, improving the plans' funded status by a modest $10 billion. Read more

House Republicans Propose Exempting Social Security Benefits From Income Tax

House Republicans proposed a bill, the Senior Citizens Tax Elimination Act, that would remove Social Security benefits from the calculation of gross earnings for income tax purposes. Read more

SOA Podcast: Interview with NCPERS Executive Director Hank Kim

Executive Director and Counsel Hank Kim discusses NCPERS' research on the social insurance and public finance section of the Society of Actuary's podcast. Read more

How States Can Account for Climate Risks to Pension System Assets

Building on early efforts by the Maryland State Retirement and Pension System (MSRPS) board and staff, Maryland became the first state to require its public retirement system to routinely analyze climate-related financial risks in 2018, beginning what may now be a trend among public pension funds. Read more

US Households Show Signs of Stress as New Delinquencies Rise

US households showed signs of increasing financial stress in the first quarter, with credit card balances not declining in the way they typically do at the start of the year and delinquencies rising for most types of consumer loans. Read more

Canadian Newsï»¿

Median Solvency Ratio of Ontario DB Pensions Rose to 115% in Q1 2023

During the quarter, pension fund investment returns averaged 4.3 percent, pushing the median solvency ratio to a new all-time high. The report projected 86 percent of pension plans to be fully funded on a solvency basis, a five percent increase from last quarter. Only two percent of plans had a solvency ratio below 85 percent, unchanged from the previous quarter. Read more

State News

CalPERS Signals ‘Appetite’ to Increase Bets on Private Equity

CalPERS, the biggest US public pension plan, is considering bigger bets on private equity despite growing fears that higher interest rates will curb the industry’s returns. Read more

Gov. Rejects Push for All N.J. Police, Firefighters to Retire with Pensions After 20 Years

Gov. Phil Murphy rejected a proposal to immediately allow all police and firefighters enrolled in New Jersey’s pension system to retire early with a reduced pension after 20 years of service. But the Democratic governor didn’t rule out the idea completely as he issued a conditional veto of the measure, dubbed the “burnout bill.” Read more

Connecticut Leaders Agree to Reform State Pension System

Connecticut Governor Ned Lamont and Comptroller Sean Scanlon announced earlier this month they have reached an agreement with municipal and labor leaders deal to reform the Connecticut Municipal Employees Retirement System. Read more

NYC Pension Funds File Board Diversity Proposals at 4 Firms

New York City’s comptroller has filed shareholder proposals on behalf of three of the city’s five pension systems, calling for board members at Capital One, Las Vegas Sands, NextEra Energy and Caesars Entertainment to disclose “race, gender, and relevant skills and attributes.” Read more

Illinois Eyes Rare Pension Move for Firefighters—A Boost in Benefits

An Illinois lawmaker is pushing to increase pensions for some Chicago city firefighters in an unusual move that highlights disparities between younger and older workers. Read more

RI Pension Fund Will Get Slice of Settlement with Wells Fargo, Not the Whole $1 Billion

Rhode Island's public employee pension system is anticipating a slice of a recent $1 billion settlement with Wells Fargo over allegations the bank misled investors about its progress in cleaning up after a sham accounts scandal a decade ago. Read more

Kentucky County Employees Raising Assumed Return Rate for First Time Since 1996

Kentucky County Employees Retirement System, Frankfort, is raising its assumed rate of return to 6.5% from 6.25%, a news release from the Kentucky Public Pensions Authority said Tuesday. Read more

Maryland State Retirement Slates $993 Million for Alternatives

Maryland State Retirement & Pension System, Baltimore, allocated $993 million to alternatives funds from February through April, board documents from its Tuesday meeting showed. Read more

NYC Pension Funds Sued for Divesting $4 Billion in Fossil-Fuel Assets

Three New York City pension funds face a lawsuit accusing them of breaching their fiduciary duties by divesting approximately $4 billion worth of assets from companies involved in fossil-fuel extraction. Read more

CalPERS Seeks Investment Director

The $456 billion California Public Employees’ Retirement System is hiring an investment director. The pension giant is hiring a search firm to find candidates for the job, which pays up to $392,000 a year. Read more