August 2021

US. Lockheed Martin offloads $4.9 billion in pension liabilities

Lockheed Martin Corp., Bethesda, Md., purchased group annuity contracts from Athene Holding Ltd. to transfer about $4.9 billion in U.S. pension plan liabilities. The purchase completed Tuesday will transfer the benefit-paying responsibilities for about 18,000 U.S. retirees and beneficiaries to Athene's wholly owned subsidiaries Athene Annuity and Life Co. and Athene Annuity & Life Assurance Company of New York, a news release from the aerospace and defense company said Tuesday. The Athene subsidiaries will begin paying benefits to the retirees and...

How can the retirement system help more people afford retirement?

You don’t have to be a mechanic to drive a car, and you shouldn’t have to be a financial expert to prepare for a secure and adequate retirement. In a nutshell, that’s the theme of a new book we edited and contributed to, Wealth after work: Innovative reforms to enhance retirement security. We propose a variety of ways to make the current retirement system work better for the majority of American workers. A better-working retirement system should provide broader and more...

World’s biggest pension fund makes record cut to U.S. bond weighting

The Government Pension Investment Fund made a record cut to the weighting of Treasuries in its portfolio last fiscal year as the world’s safest asset led a global debt selloff. Read also US. Pandemic not stopping workers from contributing to retirement plans GPIF, as the world’s biggest pension fund is known, lowered U.S. government bonds and bills to 35% of its foreign debt holdings in the 12 months ended March, from 47% previously, according to an analysis by Bloomberg of the...

US. Three NYPD execs drawing both pensions, salaries: payroll review

Three top NYPD execs are collecting hefty pensions from their time on the force in addition to six-figure salaries for their current civilian roles — including the man tasked with keeping cops honest, Internal Affairs boss Joseph Reznick, a Post review has found. And despite carrying the lofty title, the trio isn’t even technically deputy commissioners by the letter of the City Charter, which the department has apparently flouted for years to swell its well-compensated executive ranks. The Post uncovered the...

July 2021

Cliffwater: U.S. state pension plans’ 10-year returns drop in latest annual report

U.S. state pension plans saw average median returns of 8.6% and 5.8% for the 10 and 20 years ended June 30, 2020, respectively, said Cliffwater's most recent annual state pension performance report. State plans saw an average annualized return of 9.7% for the 10 years ended June 30, 2019. Pensions & Investments' Pension Fund Returns Tracker shows that the two top-performing state pension plans for the 10 years ended June 30, 2020, were the $22 billion Oklahoma Teachers' Retirement System, Oklahoma...

US. Financial Groups, Firms Push for a Biden Order on Retirement Security

Financial services firms and policy groups are urging President Joe Biden to issue an executive order to create an inter-agency task force on retirement security as part of his Build Back Better initiative. “Social Security and Medicare face financing shortfalls, while pension plans have largely disappeared for younger workers,” the 31 organizations, all partners in the Funding Our Future coalition, told Biden in a letter, released Wednesday. Read also US. Ohio Pensioners May Hold The Key To Finally Fixing America’s Struggling...

US. Can Robinhood be trusted with retirement accounts?

Robinhood, the brokerage popular among novice traders, may soon add retirement accounts onto its platform following its impending IPO, expected this week. New types of accounts could add scale to the brokerage—but may draw even more scrutiny from financial regulators. Robinhood, the brokerage popular among novice traders, may soon add retirement accounts onto its platform following its impending IPO, expected this week. New types of accounts could add scale to the brokerage—but may draw even more scrutiny from financial regulators. “Retirement...

US. Ohio Pensioners May Hold The Key To Finally Fixing America’s Struggling Public Pensions

It’s no secret that America’s struggling public pensions are a hot mess. Lack of comprehensive state regulation; the failure of legislative oversight; lay boards lacking investment experience; Wall Street donations to corrupt influential politicians and law enforcement indifference, all contribute to the morass. It seems, on the one hand, no one with authority over pensions wants to see improvements and, on the other, participants whose retirement security is at risk have no say as to how their savings are...

US. Illinois pensions among worst-funded in nation, report confirms

A new report confirms Illinois is among the worst in the country when it comes to funding its public pensions. The report was distributed by the Tax Foundation, an independent tax policy nonprofit. It indicates the state is only 39% funded for future pension obligations, the second-worst ratio in the country. “Illinois has had this problem for decades,” said Katherine Loughead, senior policy analyst with the Tax Foundation. “It's not getting any better. It is the major driver of Illinois’ chronic...

US. Federal government’s rescue plan for multiemployer pensions falls flat, critics say

Earlier this year, Congress threw a lifeline to troubled multiemployer pension plans. But the rescue effort is getting tangled in regulations that may ultimately sink many of the retirement plans, pension experts say. The Pension Benefit Guaranty Corp., which insures defined-benefit pension plans, issued rules early this month outlining a new multiemployer-plan financial-assistance program mandated by the American Rescue Plan passed in March. The law allows certain underfunded multiemployer plans to apply for taxpayer-funded financial assistance that carries no repayment...