UPFFA |

A typical pension has a whopping 49 percent cost advantage as compared to a typical 401(k) DC account, with the cost advantages stemming from longevity risk pooling, higher investment returns, and optimally balanced investment portfolios. Read more

National News

New Definitions Proposed for Responsible Investing

In an effort to standardize terminology and enable institutional investors, regulators and industry participants to communicate with precision about environmental, social and governance investing and other responsible investing terminology, the CFA Institute recently published new definitions for sustainable finance-related terms. Read more

NASRA Issue Brief: State And Local Government Contributions To Statewide Pension Plans

According to the US Census Bureau, on a national basis, contributions made by employers—states and local governments—in 2022 accounted for 78 percent of all contributions received by public pension plans. The remaining contributions were paid by public employees. Read more

Senators Float Bill Requiring Private Funds Disclose Investments in China, Other Countries

Sens. Bob Casey, D-Pa., and Rick Scott, R-Fla., introduced legislation that would require private equity firms, hedge funds, and venture capital firms to disclose their investments in certain countries. Under the Disclosing Investments in Foreign Adversaries Act, introduced Nov. 9, private funds would be required to inform the SEC of their investments in "countries of concern," which a bill fact sheet identifies as China, Iran, Russia and North Korea. Read more

Why Oil Stocks, Slipping Now, Have a Bright Future

Oil company earnings per share slumped by more than one-third in the September-ending quarter, per FactSet. At the largest U.S. oil company, ExxonMobil Corp., EPS fell 27% this year. Exxon stock is 12% off its yearly high and flat for 2023. But a consensus is growing that oil companies, despite current bumps, have a good long-term future. The thesis is that, even if renewable energy is the overwhelming power source by mid-century, the transition from fossil fuels will be slow—and hence profitable for producers. Read more

ESG is Too Important to Ax, Investors Say

As Republican legislators in the U.S. try to wipe ESG off the map, most global investors and executives are acting as though those efforts will ultimately fail. Using environmental, social and governance metrics is now mainstream, according to 89% of investors who responded to a survey published Oct. 8 by Bloomberg Intelligence. And 57% said the "ESG" label shouldn't be replaced by something less incendiary, despite the backlash. Read more

Canadian Newsï»¿

Canada Pension Plan Investments Lose 0.7% in 1st Half of Fiscal 2024

The pension fund also reported a 10-year annualized net return of 9.6% and a five-year annualized net return of 7.3%. Read more

State News

Bill Boosting Chicago Police Officers’ Pensions Clears General Assembly

The bill, authored by state Sen. Rob Martwick, D-Chicago, ensures that all retired Chicago police officers get a 3% annual cost-of-living increase, regardless of whether they were born before or after Jan. 1, 1966. The Illinois House voted 94-8 to approve the bill, and the vote in the Illinois Senate was unanimous. Read more

Kentucky Public Retirees Advocate for Payments to Reflect Cost of Living

Many retired Kentuckians are facing great personal stress over their finances, according to Kentucky Public Retirees. Instead of a percentage COLA increase, advocates are calling for a “13th check” option, a single lump-sum payment of a retiree’s current monthly benefit. It is estimated to cost the state around $188 million. Read more

Ban on State Pension Investments in Iran-linked Businesses Headed for DeSantis’ Desk

The Florida Legislature voted final passage of legislation that broadens the state’s ban on investing Florida’s $241 billion state pension fund in companies that do business with the Iranian energy and petroleum industries to other sectors of that country’s economy. Read more

Pay Bump for Retired Texas Teachers Supported by Voters

Texas’ retired teachers and public school employees are on track to receive a bump in their monthly pension checks as unofficial election returns show voters approving more than $3 billion to fund the cost-of-living increases. Read more

Staggering Taxpayer Cash Infusion Suggested for Dallas Police and Fire Pension Fix

Dallas city leaders Thursday received options from actuaries on how to fix enormous unfunded liabilities in the Dallas Police and Fire Pension Fund. Councilmembers were told a $1.3 Billion cash infusion from taxpayers would set the fund on a much better course, but the total unfunded liability is still $3 Billion. Read more

NJ, Other States Get Noticed for Public-worker Pension Fund Progress

New Jersey is among a number of states that have worked hard over the last decade to repair their public-worker pension funds, including by significantly increasing taxpayer-funded contributions. Read more

CalPERS Aims to Double Climate Assets by 2030

CalPERS staff is providing the investment committee information at its Nov. 13 meeting on the investment staff’s net zero by 2030 plan that includes nearly doubling the value of assets in climate solutions investments to $100 billion by 2030, said Peter Cashion, managing investment director, sustainable investing, in a meeting with reporters. Read more

Illinois SURS Hires Michael Schlachter as New CIO

The State Universities Retirement System of Illinois announced on Friday the hiring of Michael Schlachter to the position of CIO, succeeding Doug Wesley, who will retire in March 2024, the fund announced in a press release. Read more

New Hampshire Records 8.2% Net Return for Fiscal Year

The New Hampshire Retirement System, Concord, posted a net return of 8.2% for the fiscal year ended June 30 on assets of $11.51 billion. The fiscal-year benchmark was 9.8%. The retirement system's assumed rate of investment return is 6.75%. Read more

CalSTRS' Collaborative Model Saves $1.6 Billion Over 5 Years

CalSTRS' collaborative model that brings more assets in-house has saved the $307.9 billion pension fund a total of about $1.6 billion over five years, but the savings are starting to level off, according to a staff report. Read more