Government plans - state and local - misc |
Kansas Public Employees Retirement System Plan Would Cost Additional $10.9B
"The figure comes from the state's actuary and is included in reports from the KPERS Study Commission. The 13-member special commission was formed in 2011 to fix the pension for state, school and local government workers, which serves 290,000 Kansans. KPERS currently carries an actuarial deficit of $8.3 billion through 2033." (cjonline.com)
Trades Seek Clarity on IRS 'Governmental' Retirement Plan Definition
"Both CUNA and NAFCU have offered feedback to the IRS on clarification in determining the definition of 'governmental plan' as it relates to nonqualified deferred compensation plans at federal credit unions." (Credit Union Times)
CalSTRS Funding Gap Widens, So Does Solution
"Closing a wider funding gap, the result of expecting less money from future investment earning, would require nearly doubling the current annual payments to CalSTRS if the goal is to reach full funding in the usual 30 years." (Calpensions)
Pensions to Cost NYC More Than Salaries
"Pensions and fringe benefits for uniformed workers are going to cost the city more next year than their actual salaries, Mayor Bloomberg revealed . . . as he made another strong pitch for Albany to enact pension reforms." (New York Post)
Lawmakers in Nine States Target Own Pension Perks
"[Idaho, Iowa, Illinois, Kansas, Kentucky, Minnesota, Missouri, New Jersey and South Carolina] are advancing legislation to scale back their own pensions by closing loopholes and lucrative retirement plans that have let thousands of former lawmakers earn more in retirement than while in office." (USA TODAY)
IRS Issues Updated Version of Taxable Fringe Benefit Guide for Governmental Employers
"The IRS has updated its Taxable Fringe Benefit Guide for federal, state, and local government employers. The Guide was created to provide those entities with a basic understanding of the federal tax and reporting rules on a wide variety of fringe benefit topics, and was last updated in 2008." (Thomson Reuters/EBIA)
Proposed Washington State Hybrid Pension Plan Criticized
"A proposal to trim future outlays for state-funded pensions ran into a storm of criticism from retiree and labor groups last week, and the concept is in trouble at the Legislature." (Tacoma News, Inc.)
Change in Governmental Plan Definition to Affect Charter School Employees
"The National Alliance for Public Charter Schools estimates more than 90,000 charter school employees will be impacted by the Internal Revenue Service's proposal to change the definition of governmental plan." (PLANSPONSOR.COM)
CalSTRS Trims Investment Forecast to 7.5%
"The change means the plan will need larger contributions from taxpayers, teachers, school districts, or a combination of all three, to cover pension costs. The fund had 71% of what it needs to pay future benefits as of June 30, 2010. Lowering the rate adds $5.9 billion to its $56 billion shortfall, according to Milliman, the fund's consulting actuary." (Pensions & Investments; free registration required)
States, Localities Seek Ways to Trim Health Care Costs for Employees and Retirees
"Officials in Providence, R.I., and Iowa propose changes in health benefits. New York City Mayor Michael Bloomberg says he'll use health care reserve fund dollars to make up a shortfall." (The Henry J. Kaiser Family Foundation)
State Legislation and Actions Challenging Certain Health Reforms, 2011-2012
"In response to the federal health reform law, now known as the Affordable Care Act (ACA), and separate state reform initiatives, some members of at least 45 state legislatures have proposed legislation to limit, alter or oppose selected state or federal actions. In general many of the opposing measures, in 2010 and 2011: Focus on not permitting, implementing or enforcing mandates (federal or state) that would require purchase of insurance by individuals or by employers and impose fines or penalties for those who fail to do so. Seek to keep in-state health insurance optional, and instead allow people to purchase any type of health services or coverage they may choose. Contradict or challenge specific policy provisions contained in the 2010 federal law." (National Conference of State Legislatures)
West Virginia Senate Passes Bill to Pay Down Major Liability for Future Health Insurance Costs for Retired State and Public School Employees
"Under the bill, which is also expected to quickly win passage in the House of Delegates, the state will direct $30 million a year of personal income tax collections to pay down the liability, currently projected to be $5.3 billion." (The Charleston Gazette)
For 11 States and Puerto Rico, Cost of Employee Benefits Is One of Three Top Fiscal Issues for 2012 (PDF)
"Dealing with unfunded liabilities, increasing employee contributions and making significant reforms lie in the year ahead for state lawmakers." (National Conference of State Legislatures)
Providence Is Now on 'the Brink of Bankruptcy,' Mayor Taveras Warns
"Taveras said the city's retirees must accept reduced pension and health care benefits to save the city from financial ruin. A decree signed in 1991 by Mayor Buddy Cianci pushed the city's pension liability 'into the stratosphere' by giving annual cost-of-living increases of 5% and 6% to more than 600 retirees, he said." (WPRI.com)
Association of Public Pension Plans Launches Web Site Promoting Extension of Coverage to Private-Sector Employees
"Retirement security for all Americans -- whether they work in the public or private sector -- must become a national priority. The Secure Choice Pension (SCP) plan would allow private companies and individuals to participate in a state-sponsored pension plan for the private sector. . . . The SCP benefits include having more taxpaying, productive retirees rather than senior citizens becoming wards of the state who rely upon public assistance." (National Conference on Public Employee Retirement Systems (NCPERS))
Providence, R.I., Mayor Proposes Benefit Cuts to Avert Bankruptcy
"Mayor Angel Taveras, a Democrat, outlined plans to reduce pensions for retired municipal workers and vowed to appeal a recent state court ruling preventing the city from forcing its retirees to switch to the federal Medicare health insurance program when they turned 65." (New York Times; free registration required)
Baltimore Mayor Takes Stand in Pension Trial
"The Fraternal Order of Police and the firefighters union contend that the administration's plan, which delayed retirement for some and abolished a fluctuating cost-of-living increase, among other changes, violates their contracts with the city." (Baltimoresun.com)
Unions Howl at Details of Jerry Brown's Pension Overhaul Proposal
"The details delivered to the Legislature on Thursday generally tracked with an outline he unveiled in October. Representatives of a union coalition hoped to negotiate what they consider a less severe package. On Thursday, they said they felt blindsided." (Sacramento Bee)
California Governor Jerry Brown Delivers Pension Reform Language to Legislators
"The governor's plan won't go forward without two-thirds of the Legislature voting to put the constitutional changes on the Nov. 6 ballot, which would then need voter approval from a majority." (Sacramento Bee)
Mayor Says Pensions and Benefits for Uniformed Workers Will Cost New York City More Than Their Actual Salaries
"Pensions and fringe benefits for uniformed workers are going to cost the city more next year than their actual salaries, Mayor Bloomberg revealed [on Thursday, Feb. 2] as he made another strong pitch for Albany to enact pension reforms." (NYPOST.com)
Judge Rejects Law Seeking to Reform New Hampshire State Pensions
"A major component of the reform law was hiking the amount that all public employees contribute from their salary to support the state's retirement pension account. [The plaintiff] argued that it was against the law to increase the contributions for all employees who had worked for at least a year. Judge McNamara agreed." (New Hampshire Union Leader)
[Official Guidance] Text of IRS Notice of Hearing on Discussion Draft of IRS Regs on 'Governmental Plan' Status
Reschedules a public hearing from June 5 to be July 9, and extends the period for the submission of public comments. (U.S. Internal Revenue Service)
New York City Mayor Faces Rising Pension Costs in 2013 Budget
"New York owes its five pensions about $2 billion more than previously budgeted because officials have been too optimistic in assuming an 8 percent return on fund investments, Chief Actuary Robert North has determined." (Bloomberg)
Public-private Pay Gap Varies Greatly By Education Level
"Federal civilian workers with only a high school diploma or less fared much better than private sector employees with the same: They earned 21 percent more wages, 72 percent higher benefits and 36 percent more in total compensation. . . . In contrast, among employees with a professional degree or doctorate, federal workers earned 23 percent less in wages and 18 percent lower total compensation, while receiving about the same benefits as the private sector employees with identical degrees." (GovExec.com)
Alaska Senator Advocates Creation of Optional Defined Benefit Plan for State Employees
"The bill calls for a new defined benefit plan tier following backlash from 2006 legislation that made Alaska the first state to switch to an all defined contribution plan structure for new employees. . . . [M]unicipalities are concerned with the potential of training and employing police officers for five years, only to see them bolt with their [defined contribution plan] assets to another state that can offer a pension." (Pensions & Investments, reprinted in Business Insurance)
Lower Your Earnings Assumption, Milliman Tells Second-Largest Public Pension Plan
"'There is a less than 50 percent probability that the current assumption' of 7.75 percent will be met [by the California State Teachers' Retirement System] 'over the long term,' Milliman actuaries wrote in their report." (Bloomberg)
Public Pensions Pile on Risk to Beat Underfunding
"Public sector pension fund investors and their fund managers react differently to an underfunded status than their private sector peers, Nancy Mohan and Ting Zhang at the University of Drayton found in research . . . [G]overnment accounting standards 'strongly affect risk-taking behavior', as most pension plans used higher return assumptions to discount their pension liabilities." (aiCIO)
Setting the Record Straight on 12 of the Biggest Myths Over Public Pensions
"One of my pet peeves in the ongoing debates over public pension reform is the way partisans on each side try to pitch half-truths and myths to support their arguments. . . . There's an old saying in politics that if you tell the same lie long enough, the public will eventually believe it -- and that apparently is the mentality of lobbyists on both sides. . . . . I'd like to set the record straight on a dozen of the most glaring fallacies and silly slogans." (Governing.com)
San Diego Pension Measure Headed for June Ballot
"An initiative that would eliminate guaranteed pensions for most new city hires and replace them with a 401(k)-style plan is officially headed for the June 5 ballot." (The San Diego Union-Tribune, LLC)
Washington State Bill Would Put New Hires in State and Local Governments Into Hybrid Pension Plans
"[The Senate Bill gets a hearing] Thursday in the Senate Ways and Means Committee. The bill has two other pieces: letting the state skip a $130 million payment in the Plan 1 retirement accounts next year, and eliminating the early retirement benefit for newly hired workers." (Tacoma News, Inc.)
Checklist of State DB, DC, and Other Retirement Plans
"This compilation of state defined benefit, defined contribution, and hybrid plans includes plans that cover general state employees and teachers in K-12 education (although some of the plans counted here may cover additional categories of employees). The lists exclude plans limited to public safety employees, judges, elected officials and employees of higher education, for whom many states have separate plans or provisions. In some of the states listed below, the plans cover all public employees in a state, including local government employees." (National Conference of State Legislatures)
California Public Pension Funds' Earnings Dip Amid Gloomy Forecasts
"The nation's two largest public pension funds last week reported slim annual investment earnings, CalPERS 1.1 percent and CalSTRS 2.3 percent, as experts continue to say hitting their long-term earnings target, 7.75 percent, will be difficult." (Calpensions)
[Opinion] Teachers' Pension Issue: The state of Maryland vs. the Counties
"[The governor's] proposal to shift 50 percent of the cost of teachers' pensions from the state to the counties in which they are employed has county officials scrambling --and the budget isn't even approved yet." (www.delmarvanow.com)
Rhode Island Treasurer Says Move 36 Local Pension Plans Into State-Run System
"The 36 local plans have a combined unfunded liability of $2.1 billion, but about 40% of that shortfall is in one city: Providence, where [the mayor has clashed with the state treasurer] over whether the General Assembly should pass legislation giving communities the green light to freeze pension cost-of-living adjustments (COLAs)." (WPRI)
Establishing and Administering an OPEB Trust
"The Government Finance Officers Association (GFOA) recommends creating a qualified trust fund to prefund OPEB obligations. To ensure that the trust is established and administered properly, governments should consult qualified legal counsel and fully understand the following issues . . . ." (Government Finance Officer's Association)
The Sonoma County, California, Pension Crisis (PDF)
"As a result of its overly generous salaries and pension benefits, Sonoma County now has the highest pension debt per capita of any county in California and maybe the nation. And even with all this debt, which stands at over $500 million, the pension fund is underfunded by $380 million and the health insurance fund is underfunded by $250 million. In the last 4 years alone, due to the poor performance of its investments, the unfunded liability has increased by $600 million." (Sonoma County Tax Payers Association)
Judge Says Same-Sex Health-Coverage Ban Biased
"A federal judge signaled Thursday that she's likely to strike down a federal law that denies long-term health coverage to the same-sex domestic partners of state employees in California, saying it appears to be based on prejudice against gays and lesbians." (The San Francisco Chronicle)
Annual Survey of Public-Employee Retirement Systems: 222 State Administered Defined Benefit Public Employee Retirement Systems
"The [survey] provides revenues, expenditures, financial assets, and membership information for defined benefit public employee retirement systems." (U.S. Census Bureau)
Bill Would Allow Alaska Public Employees to Switch to DB Pension Plan
"A bill that will allow Alaska public employees to choose between a 401(k)-like retirement account or a traditional pension is being considered in the state legislature." (PLANSPONSOR.COM)
Supreme Court Weighs Sick Leave for State Workers
"In many industrialized countries around the world, taking time off from work to deal with a medical issue isn't just a benefit; it's considered an entitlement, as much as an eight-hour day. But in the world's richest nation, a worker who claims that right has had to appeal to the highest court in the land. So the Supreme Court will now weigh the rights of public employees to seek justice under the Family and Medical Leave Act (FMLA)." (TheHuffingtonPost.com, Inc.)
Louisiana Governor Proposes Pension Overhaul
"[T]he governor unveiled a detailed plan he says would both ease taxpayer burden and ensure that workers will receive promised benefits . . . . Jindal said the state's unfunded accrued liability has tripled to $18.5 billion over the past two decades, three times the current total payroll. For new hires, Jindal proposed a switch from a defined benefit plan to a cash-balance plan." (PLANSPONSOR.COM)
Death Benefits Available to Surviving Families of Florida Law Enforcement Officers Killed in the Line of Duty (PDF)
This document is a comprehensive summary of death benefits available to surviving families of Florida law enforcement officers killed in the line of duty. (Concerns of Police Survivors, Inc. via Cypen & Cypen)
Bill Adds Pension Cost for Teachers and Local Government Workers
"All public school teachers and local government employees would have to contribute 5 percent of their pay toward their retirement plan under legislation introduced in the Virginia Senate. Sen. John C. Watkins, R-Powhatan, also wants to prohibit school boards and local governing bodies from paying the employee share of their pensions as almost all school divisions and many local governments have for decades." (Richmond Times-Dispatch)
Deadline Nears to Comment on IRS Governmental Plan Guidance Discussion Draft
"The [IRS] will hold a public hearing on June 5, 2012, on the definition of a 'governmental plan' under Section 414(d) of the [IRC]. The subject of the hearing will be IRS's discussion draft of a proposed regulation on the definition. Individuals wishing to speak at the hearing must submit written requests and supporting materials by February 6, 2012, which is also the date by which written comments on the discussion draft are due." (The Segal Group, Inc.)
State Defined Contribution and Hybrid Retirement Plans
"This report lists state governments' defined contribution retirement plans designed as primary coverage for a group or class of state employees or state teachers: that is, it includes plans that eligible employees are required to join, or that are one of two or three alternative plans that employees choose among. Some states provide hybrid plans, in which employees are covered by both a defined benefit and a defined contribution plan. Hybrid is a generic, not a specific, term, and what are called hybrid plans in state government differ substantially." (National Conference of State Legislatures)
Developing a Pension Funding Policy for State and Local Governments (PDF)
"These funding principles can be thought of in a risk-management framework. In an effort to keep the employer's pension contribution relatively stable from year to year, a funding policy should: (1) identify keyrisk areas that add to contribution volatility and (2) identify ways to manage each of those risks. The primary risk areas in funding retirement systems are investment risks, demographic risks within the covered population, benefit or plan design risks, and governance risks." (Gabriel Roeder Smith & Company)
New Jersey not Making Its Share of Pension Contribution
"The pension reform passed last year helped lower the state's unfunded pension liability from $53.9 billion to $36.3 billion, but the state's pension hole grew by $5.5 billion by the end of the 2011 budget year, largely because the state failed to make a pension payment, an annual actuarial report on the pension funds shows, according to the Newark Star-Ledger." (PLANSPONSOR.COM)
[Opinion] Public Pensions?are Not The Enemy
"It's not as though public employee unions are resisting any and all change. They did their part and agreed to a new pension tier [under the New York State and Local Retirement System] just two years ago that is projected to save $35 billion over 30 years. This is on top of wage freezes, furloughs, increased health contributions and layoffs." (NY Daily News)
San Jose Council Members Move to End Their Pensions
"The council voted unanimously to notify the California Public Employees' Retirement System of the city's intent to terminate the council member pension plan." (San Jose Mercury News)
Virginia Bill Shifts Portion of Pension Load to Teachers, Local Government Workers
"All public school teachers and local government employees would have to contribute 5 percent of their pay toward their retirement plan under legislation introduced in the Virginia Senate." (Richmond Times-Dispatch)
[Opinion] Public Pensions Are Not the Enemy: So Why Does Gov. Cuomo's Plan Vilify Middle Class Retirement Security?
"[E]ven though it will not produce any savings to help address the current budget deficit, Gov. Cuomo's executive budget includes a new pension tier with an 'optional' 401(k). In reality, there is no option in this plan, as the new tier would obliterate the defined benefit plan, slashing payouts and making employee contributions unaffordable." (NYDailyNews.com)
Debate over Public Pensions Research by Stanford Institute for Economic Policy Research
"A Dec. 13 SIEPR report . . . titled 'Pension Math: How California's Retirement Spending is Squeezing the State Budget,' examined the state of three of California's public employee pension systems: [CalPERS]), [CalSTRS] and the University of California Retirement Plan . . . . The study concluded that debt on public pensions was larger than the state is currently reporting . . . . In a joint email to The Daily, SIEPR Director John Shoven and Deputy Director Greg Rosston reaffirmed that SIEPR's research is not influenced by its corporate support . . . ." (Stanford Daily)
Call for Papers: Good, Better, Best: The Basics of Funding Public Sector Pension Plans
"Essay authors may choose how they distinguish between 'good, better, best and not recommended;' authors can consider factors such as ability to withstand economic downturns; alignment with sponsor cash flow considerations; time period over which an underfunded plan would become fully funded; allocation of costs to generations of taxpayers; ability to produce smooth pattern of contributions; alignment with markets (e.g. discount rates and investment); risk management; future service periods; or other factors of the author's choosing. . . . Essays should be submitted by Friday March 30, 2012 to Susan Martz, smartz@soa.org." (Society of Actuaries)
Wellness Program Approved for Oregon State Employees
"Oregon's Public Employees' Benefit Board . . . voted to give $155,000 to the Oregon Public Health Division to help fund its Wellness@Work program." (PLANSPONSOR.COM)
[Opinion] California Unions Clueless on Pension Costs
"The irony is that the hundreds of thousands of teachers, firefighters, police officers, clerks, janitors, garbage collectors and other public employees whose futures depend on the systems have the most to lose if they are not reformed." (The Orange County Register)
[Opinion] Public Pension Propaganda: The Lie
"NCPERS averaged 216 [public pension plan sponsor] responders to a survey who happened to have a funded ratio of 76.1% and Fitch ratings says 70% or above is adequate. . . . Who's to argue? Me." (Burypensions Blog)
[Opinion] Public Pension Propaganda: What They Got Right
"[On Thursday, Jan. 19, 2011] the National Public Pension Coalition held a press conference looking to influence anyone within earshot that public pensions should not be cut and are, in fact, affordable. In this series I will debunk some of their propaganda but, to start off, there is one area where this cabal got it absolutely right: . . . 401(k) plans are a scam perpetrated by employers to avoid obligations and the investment industry looking to siphon off fees. They are certainly inadequate as retirement vehicles." (Burypensions Blog)
[Opinion] Taxing Seniors' Pensions 'Tough But Necessary' in Michigan
"Many people may not realize that Michigan was one of only a handful of states that exempted pensions from taxation in the first place. Our plan treats the income of retirees just like that of working seniors." ([Saline, MI] Patch)
[Opinion] Early Retirement Provisions of West Virginia Local Government Pension Plans Warrant a Review
"To see why, consider the pension plans for Huntington's police officers and firefighters. An analysis by [a Herald-Dispatch reporter] found that at least one-sixth, or $1.21 million, of the $7.3 million total payout to the city's police and fire retirees this year will go to people who are still collecting a paycheck -- and sometimes a second pension -- for other jobs in city, county, state or federal governments." (Herald-Dispatch.com)
Connecticut Will Step Up Pension Payments to Save $5.8 Billion
"The stepped-up payment rate is intended to avoid a one-time obligation estimated at $4.5 billion in fiscal 2032, Malloy said yesterday in a statement. The sum, about four times the state's annual contribution in recent years, was projected based on continuing along that path." (Bloomberg L.P.)
|
Important word about authorship:
BenefitsLink® (BenefitsLink.com) provides this page for you, containing selected hypertext links to pages on the web that our editors think will be useful or interesting to you. But BenefitsLink is not the author or publisher of those linked pages (except as expressly indicated). You should contact directly the author of any such linked pages for copyright or other information about their contents.
|
Webmaster: Dave Baker (click) · © 2012 BenefitsLink.com, Inc.
(contact the webmaster for reprint permission) ·
Linking: Feel free to link directly to this page, even without specifically crediting BenefitsLink ® as its source. Glad you're here! ·
Privacy Policy
|
|
