UPFFA |

The assumption by participants must be that the firms advertising rollovers are operating in the participants' interest, but, in fact, participants very often are moving from fiduciary protection and low-fees into an unprotected arena where their assets will be invested in high-fee mutual funds. So, making sure that advisers are acting in the saver's best interest when considering a rollover is hugely important. Read more

National News

Public Pensions Frequently Change Their Private Equity Benchmarks. Why It Matters.

As public pensions have put more money into private equity, many have been working to identify benchmarks that will measure their successes and failures fairly. According to new research, the benchmarking approach a pension uses tends to change after they bring in new external consultants — which public plans do often. The researchers found that these changes often lead to pensions choosing benchmarks that are easier to beat than the measures they had been using. Read more

Social Security: How Public Workers Also Receiving Pensions May Finally Receive Fair Compensation

Millions of Americans who worked in public sector jobs could see a boost in their Social Security benefits in the future. The Social Security Fairness Act received bipartisan support, with 300 co-sponsors out of the 435 reps who voted. The bill was also introduced to the Senate with the backing of 49 leaders on both sides of the aisle. Read more

Public Pension Funded Ratio Drops to 71.4% in October, the Same Level as One Year Ago

During October, the Milliman 100 PPFI funded ratio slipped from 73.2% as of September 30 to 71.4% as of October 31. This decline was due to a third straight month of investment losses, as the plans experienced estimated aggregate returns of -1.9% in October, with individual plan returns ranging from â€‘2.8% to â€‘1.1% for the period. Read more

Republican Budget Proposal Would Cut EBSA Budget, Roll Back ESG Rule

Republicans in the U.S. House of Representatives have proposed a budget for the Department of Labor that would block the DOL’s final rule on environmental, social and governance considerations in retirement plans and a proposed rule that would modify the definition of independent contractor. The House also approved amendments to the bill—H.R. 5894, the Labor, Health and Human Services, Education, and Related Agencies Appropriations Act of 2024—which would block proposed changes to the definition of a fiduciary. Read more

Asset Managers Turn to Geopolitical Risk Experts to Help Navigate Markets

Pension plans and asset managers are preparing for deglobalization and continued conflict, which they are concerned will impact global supply chains and maintain an inflationary impact on the world economy. Read more

Canadian News

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OMERS Deal Values Maple Leaf Sports & Entertainment at $8B

The Ontario Municipal Employees Retirement System has acquired a 5% indirect stake in Maple Leaf Sports & Entertainment Ltd. for C$546.8 million ($400 million). “This is an exciting and unique opportunity for OMERS members in Ontario communities to be connected to these iconic sports teams in their own backyard,” OMERS President and CEO Blake Hutcheson said in a release. Read more

State News

Chicago's 2024 Budget Includes $2.8 Billion in Pension Contributions

Those contributions, include $307 million in advance payments and represent the third year in a row — and third in the city's history — it has made actuarially determined contributions. Read more

New York City Comptroller Brad Lander and Pension Trustees Announce Critical Changes to and Expansion of Emerging Manager Program

During fiscal year 2023, the Systems’ total actively managed US based assets exposure to MWBE investment managers across all asset classes increased to $19.50 billion (12.68%) – up from 11.65% the prior year. This increase accompanies a strong 8% increase in investment returns for the fiscal year, surpassing the 7% actuarial target rate. Read more

Pennsylvania House OKs $1.8 Billion Pension Boost for Government and Public School Retirees

Democrats who control the state House of Representatives on Tuesday advanced an estimated $1.8 billion boost to the pensions of Pennsylvania state government and public school retirees, while some Republicans said taxpayers will unfairly shoulder the financial burden. Read more

Oklahoma Pension System Strikes Back at Anti-ESG Treasurer Over BlackRock, SSGA Funds

Oklahoma Public Employees Retirement System fired back at Oklahoma Treasurer Todd Russ in a letter rebuffing Russ' accusations that the $10.3 billion pension fund violated the law when it voted to keep BlackRock and State Street as asset managers. Read more

CalPERS Funded Status Inches Up from 2022 Plunge

CalPERS' estimated funded status was about 72% as of June 30, rising from 70.9% last year but still reflecting a significant decline from 81.2% in 2021, according to $446.7 billion pension fund's most recent funding report. Read more

Shreveport Mayor Asks for $1M to Avoid Firefighter Pension Funding Dilemma

The city has two, old pension funds for police and fire personnel who retired many years ago. The pension system was closed in the 1980s’ and new hires were then placed under the state’s system. The administration said their commitment is that the city owes the pension beneficiaries everything they were promised until the last beneficiary passes away. Read more

Illinois Municipal CIO Angela Miller-May on Reallocating Portfolios Amid a Volatile Market

She sat down for an interview to discuss her investment reallocations since joining the $49 billion pension fund;why fixed income presents opportunities; the geopolitical risks and outlook for a recession in the U.S.; whether the Federal Reserve is done raising rates; and her personal journey to the CIO job. Read more

New York State Common Retirement Fund value dips to $246.3 billion

The fund experienced a -1.59% investment return, a dip from June's $254.1 billion valuation but still an improvement over the March figure of $248.5 billion at the fiscal year-end. Read more

CalSTRS' Ailman: Energy Transition a 'Massive' Undertaking for Investors Worldwide

To mark its 50th anniversary this year, Pensions & Investments sought out pre-eminent investor Christopher Ailman, CIO of the $316.7 billion California State Teachers' Retirement System, West Sacramento, for his thoughts on the energy transition, the outlook for private markets and navigating through the pandemic. Read more

Bill to Boost Pensions for Retired Chicago Cops Will Cost City $60M

The pension bill — approved last week during the Legislature’s veto session — will grant 3% cost-of-living increases for all retired Chicago police officers, regardless of whether they were born before or after Jan. 1, 1966. Pritzker in 2021 signed into law a similar measure that boosted pensions for retired firefighters. Read more