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The job market in the United States has been drum tight since the onset of the Covid-19 pandemic. Despite a sharp rise in unemployment during the initial pandemic shutdown, the labor market has recovered over the four years since. Even with the most recent jobs report, the unemployment rate remains at historically low levels, averaging 3.8 percent since January 2023. Additionally, prime-age workers (ages 25-54) are participating in the labor force at strong levels. Read more

National News

Lawmakers File Discharge Petition to Repeal Controversial Tax Rule Affecting Federal Retirees

A bipartisan pair of lawmakers filed a discharge petition seeking to force a vote on the House floor on a measure that would eliminate a pair of controversial tax rules that reduce the retirement benefits of some ex-government workers. Reps. Abigail Spanberger, D-Va., and Garret Graves, R-La., are the lead sponsors of the Social Security Fairness Act (H.R. 82), a measure introduced last year that would eliminate Social Security’s windfall elimination provision and government pension offset. Read more

Workers’ ‘Spending Spikes’ Threaten Retirement Security

Workers’ financial stability can be tested by many challenges throughout their careers, one of the most significant being irregular, often significant, expenses that can harm their retirement security, according to a report from the Employee Benefit Research Institute. In its report, EBRI considered “spending spikes” among public sector defined contribution plan participants and how these irregular or unexpected costs effected their finances. Read more

BlackRock Survey Reveals Bipartisan Fears of Retirement Savings Crisis

U.S. politicians looking for a unifying theme amid the country’s starkest political divisions since the Civil War may want to consider focusing on retirement security. That is one takeaway from a survey BlackRock released, the first of a new retirement policy series the giant money manager is launching this year. Read more

As Pension Funding Levels Fell in 2022, Higher Contributions Helped States Manage Debt

From fiscal year 2021 to 2022, the reported funding gap for state pension plans—the disparity between promised benefits and available assets—jumped by $439 billion to $1.27 trillion. The increase, largely fueled by investment losses, highlights how volatile financial markets continue to expose state and local governments to risk. Read more

Maximizing Retirement for Public Sector Workers: Essential Steps for a Secure Future

Public sector workers are the backbone of our society. Those who dedicate their careers to helping others such as teachers, doctors, nurses, first responders, government workers and those in the non-profit field, have deep impacts on our futures, our health and our day-to-day lives. Historically, one of the rewards for a selfless career in public service has been access to a retirement benefit that is becoming increasingly rare for American workers: a pension. Read more

House Republicans Target Proxy-Advisory Firms for Promoting ESG

House Republicans on Sept. 10 warned of what they said is an outsized influence from proxy-advisory firms on the institutional investors they work with, specifically when it comes to ESG-related proposals. “Proxy-advisory firms have been given immense power to shift policy, often using a one-size-fits-all framework to promote a liberal, social agenda,” said Subcommittee Chair Bill Huizenga, R-Mich., in his opening statement before the House Financial Services Subcommittee on Oversight and Investigations. Read more

Canadian Newsï»¿

Canadian Pension Plans Tackle Market Challenges and ESG Shifts

In a webinar hosted by Benefits and Pension Monitor, CIBC Mellon’s Darlene Claes-McKinnon and Michael Graham presented key findings from a study on Canadian pension plans, highlighting the challenges asset owners face today. The webinar discussed how pension plans are grappling with issues ranging from rising interest rates and global geopolitical shocks to domestic financial pressures affecting institutional investments. Read more

State News

Pennsylvania SERS Retains Empower, Aims to Save $1.4M per Year Under New Contract

The Pennsylvania State Employees’ Retirement System has rehired financial services company Empower as its third-party administrator. The firm submitted the winning bid in a request for proposals to oversee the pension fund’s restructured deferred compensation and defined contribution plans. Read more

Los Angeles City Employees’ Retirement System Posts 8.7% Net Return for Fiscal Year

Los Angeles City Employees’ Retirement System reported a net return of 8.7% for its fiscal year ended June 30, missing its 9.5% benchmark. The $24.3 billion pension fund beat its benchmark for the three- and five-year periods and was flat for the 10- and 20-year periods ended June 30. Read more

Sen. Jimmy Higdon Celebrates Promising Reports on Kentucky Teacher's Retirement System

"The updates presented to PPOB and lawmakers recently by TRS bring promising news for our Kentucky teachers and are a testament to my colleagues' commitment to stabilizing our pension systems. With the report of a one-year return on investments of 12.27 percent for the Retirement Annuity Trust and 12.73 percent for the Health Insurance Trust, TRS has now had two consecutive years of double-digit returns." Read more

Growing Pension Liabilities Threaten St. Louis, Missouri Public Schools' Financial Future

There's a growing financial crisis in the St. Louis Public Schools’ pension fund that could impact the future of education. Industry insiders described a ticking time bomb at the heart of St. Louis Public Schools — a pension system that’s rapidly running out of time, and money. The I-Team has uncovered concerning issues that put both the district and its teachers on shaky ground, raising concerns about the future of its financial promises. Read more

Jacksonville, Florida City Council Historic Contracts Bring Back Pensions to Police and Firefighters

Agreements with the police and firefighter unions that will award double-digit pay raises this year and return pensions for new hires in 2027 won support from Jacksonville City Council members who said in the same breath the contracts will constrain what the city can afford in future budgets. Read more

Dallas, Texas Approves New 30-Year Police and Fire Pension Funding Plan

A long battle over the Dallas Police and Fire Pension fund is a step closer to being over. The Dallas City Council approved spending $11 billion over the next 30 years to hopefully fix a more than $3 billion budget shortfall. The city’s plan also gives retirees a 1% stipend per year based on how the pension performs. Read more

Arizona Public Safety Returns 10.3% for Fiscal Year

Arizona Public Safety Personnel Retirement System, Phoenix, posted a net return of 10.3% for the fiscal year ended June 30. The $21.8 billion pension fund’s return fell below its benchmark return of 16.6% for the period, according to a performance report on its website. Read more

Why the Colorado is Commissioning a Study on PERA’s Plan Design

Since 1931, Colorado PERA has been providing retirement and other benefits to the public employees who keep our state running. As the workforce and retirement landscape have changed, PERA also has adapted and grown; Colorado’s largest public retirement plan now covers nearly 700,000 current and former public workers. Read more

Kentucky Public Pensions Authority Posts Positive FY24 Returns, Misses Benchmarks

Kentucky Public Pensions Authority, Frankfort, reported fiscal-year returns for the five state pension funds it oversees ranging from 9.5% to 11.3% in performance reports posted on its website. For the fiscal year ended June 30, the two top-performing pension funds were the $3.4 billion County Employees' Retirement System (Hazardous), which returned a net 11.7% (below its 14.1% benchmark)... Read more

Connecticut Makes 11.5% Return on Pension Asset Investments

Connecticut made an 11.5% return last fiscal year investing its pension assets, placing in the top 25% nationally of large public pension funds, state Treasurer Erick Russell reported. Investment gains, coupled with about $1.9 billion in budget surplus that state legislators and Gov. Ned Lamont dedicated to unfunded obligations, meant Connecticut’s pension funds gained $6.7 billion last fiscal year. Read more