UPFFA |

The Oklahoma state Legislature passed the Energy Discriminations Eliminations Act (EDEA) in 2022, intended to prevent public state funds, including pension assets, from being managed by financial institutions that are deemed to be boycotting certain industries, including energy companies. The law empowered the state treasurer to compile a list of financial companies that boycott energy companies and would then blacklist them from managing any state pension plans due to the alleged boycotts. Read more

National News

Sustainability Experts Face Headwinds of ESG Skepticism, But Asset Owners Remain Undeterred

It would be hard to say that 2024 is ending on a high note for sustainability and ESG. Where there was once a feeling of optimism, driven by climate change agreements and pledges, sources now say pessimism has become pervasive in the sector. The shift gaining the most headlines is the imminent return of Donald Trump to the White House. Sources said this political reversal from a Biden administration looks likely to see a return of climate skepticism, with the U.S. having pulled out of the Paris Agreement during Trump’s first term. Read more

IRS Delays Applicability of Certain Proposed RMD Rules to 2026

The Internal Revenue Service announced that certain portions of future final regulations related to required minimum distributions will not apply until the 2026 distribution calendar year. The proposed regulatory amendments related to RMDs were proposed to apply beginning January 1, 2025, but in response to concerns raised by commenters that it would be difficult to implement many of the provisions in a timely manner, the IRS decided to extend the applicability date. The Treasury Department and the IRS published proposed regulations regarding RMDs in the Federal Register on February 24, 2022, which reflected changes made by the Setting Every Community Up for Retirement Enhancement Act of 2019. Read more

Southwest Airlines Adds a Market Based Cash Balance Plan for Pilots

Pilots at Southwest Airlines can sock away more for retirement, thanks to a new retirement plan benefit that began in August as part of contract negotiations with the pilot’s union, the airline said. Because many Southwest pilots hit the 401(k) contribution limit before the tax year ends, the airline added a Market Based Cash Balance Plan (MBCBP) so pilots can receive the entire 17% Southwest contributes to their pilot’s retirements in a defined benefit plan, financial advisers said. The company’s contributions exceeding the 401(k) limit would spill over into the MBCBP, which means more savings and immediate tax benefits for pilots, advisers said. Read more

Women in Public Service Are Significantly More Concerned About Retirement

Women working for state or local governments are significantly more concerned about their retirement planning and other finances than male colleagues. A recent survey by the MissionSquare Research Institute reveals that while three in ten men in public service roles are uneasy about having enough money saved for their retirement and about their emergency savings, this rises to more than four in ten among female colleagues. Most employees in state and local governments have access to defined contribution accounts and defined benefit pension plans, but this may not be of comfort to the sizeable share of respondents that are struggling with everyday expenses. Read more

Possible Crypto Policy Blitz in 2025 For Many States in Spite of the Risks

The new year will usher in the bitcoin-friendly administration of President-elect Donald Trump and an expanding lobbying effort in statehouses that, together, could push states to become more open to crypto and for public pension funds and treasuries to buy into it. Proponents of the uniquely volatile commodity argue it is a valuable hedge against inflation, similar to gold. Many bitcoin enthusiasts and investors are quick to criticize government-backed currencies as prone to devaluation and say increased government buy-in will stabilize bitcoin's future price swings, give it more legitimacy and further boost an already rising price. Read more

Canadian News

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Feds’ Decided to Transfer $1.9BN Public Pension Surplus to General Revenue Within its Purview

The federal government’s recent decision to transfer a $1.9 billion surplus from the Public Service Pension Plan to its general revenue is within its purview, says Mitch Frazer, a pension lawyer and managing partner at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo. “[This situation is] slightly different because this plan is made by a statute and, as a result, it doesn’t have the same surplus withdrawal rules that a company pension plan would have. If this was a private company, and the plan was set up [prior to] 1990, there would be some tax issues which wouldn’t allow you to take the money out of the trust without having some sort of agreement.” Read more

State News

Maryland Top Finance Official Seek a Full Divestment from Alabama After State Passes Near-Total Abortion Ban

Maryland’s chief financial officer called for a number of retaliatory economic measures against Alabama in response to the state’s passage of the nation’s most restrictive abortion legislation. The bill was signed by Republican Gov. Kay Ivey. Maryland Comptroller Peter Franchot, a Democrat who also serves as vice chair of the state’s retirement system, is seeking a full divestment of the $52 billion pension fund from Alabama businesses and will soon make the case to the system’s board of trustees, he said. Read more

Rochester, NY Police Pension Costs Rising as Retirees Cash in on Historic Levels of Overtime

An ongoing staffing shortage and a post-pandemic spike in crime spawned a period of massive overtime for Rochester police since 2019. But special events such as festivals and sporting events were the largest single reason for overtime last year. And more senior officers get dibs on those overtime shifts. Read more

Morgantown, West Virginia Council Approves Measures to Address Police and Firefighter Pension Funds

The Morgantown City Council unanimously approved the first reading of ordinances that would move newly hired first responders to the Municipal Police Officers and Firefighters Retirement System. The ordinance was passed as part of what is being titled by city staff as “The Compromise,” which includes a combination of moving existing funds from sales tax revenue to the currently active pension funds for city police and firefighters and an increase to the city fire fee. Read more

Illinois Police Fund Finishes Consolidation of Local Pensions

The Illinois Police Officers’ Pension Investment Fund has completed the consolidation of 351 local police pension funds. Approximately 18 local pension funds had their assets transferred as part of the 14th and final group to be added, bringing the value of the IPOPIF’s assets under management to $12.9 billion. Read more

How Colorado’s Mandatory Retirement Plan Is Working Out

...roughly 68,500 workers in Colorado have squirreled away $94 million into the SecureSavings program since it launched in early 2023. The program, for workers whose employers didn’t offer a retirement plan, was set up by the state but administered by professional fund managers. Another 20,000 Colorado workers are in the pipeline, according to program administrators. Read more

Indiana Pension Board Votes to Remove Blackrock Due to ESG Violations

The board of trustees for the Indiana Public Retirement System voted unanimously Friday to dismiss global investment firm BlackRock from handling the state’s portfolio. The move came after Indiana Treasurer Daniel Elliott accused BlackRock of making illegal environmental, social or governance (ESG) commitments. Read more

San Francisco Pension Fund Updates ESG Policies, Adds Fossil-Fuel Companies to Restricted Investments List

San Francisco City & County Employees’ Retirement System approved changes to its environmental, social and governance policies, including the addition of oil and gas and thermal coal companies to its restricted investments list. The $36.6 billion pension fund’s board approved the recommendations by Andrew Collins, director of ESG investing, and Blake Broadnax, investment officer, ESG investing... Read more

MainePERS Cuts Fossil-Fuel Holdings but Won't Divest Completely by Jan. 1, 2026, Deadline

The Maine Public Employees Retirement System, Augusta, reduced its fossil fuel investments to 6.1%, or $1.21 billion, of total pension assets for the fiscal year ended June 30, down from 6.5% for the year-ago period, said a pension system report describing the progress mandated by a 2021 fossil-fuel divestment law. Although the law directed MainePERS to divest all fossil fuel holdings by Jan. 1, 2026, the report, like previous annual reports, said total divesting by that deadline would incur significant costs and hamper the $20 billion pension system’s investment strategy. Read more

Maryland Launches Panel to Study Climate Implications of Pension System Investments

Maryland officials have taken a step closer to divesting from fossil fuels and considering climate risks when evaluating proposals for how the state retirement and pension system should invest and earn money. The Maryland State Retirement and Pension System (SRPS) Board of Trustees voted unanimously to establish a Climate Advisory Panel, which will advise the board and staffers in the SRPS Investment Division on ways to address and mitigate climate risk when considering investments. Read more

Voting Support for NYC Pension Proxy Proposals Continues to Wane

Support for proxy proposals submitted by New York City’s five pension funds declined in 2024, with only 21% of shareholders siding with the retirement system when voting, down from 27% in 2023 and 35% in 2022, according to its annual proxy report. The six-percentage-point drop dragged the pension funds below the market-wide batting average of 21.8%. Read more

Notice: NCPERS office will be closed from December 24th to January 1st in observance of the holidays & NewsClips will not be distributed on Monday, December 30th.