August 2023
18Aug

The Transitional Impact of State Pension Reform

By Jordan Pandolfo & Kurt Winkelmann We use an overlapping generations framework to evaluate the transitional impact of state pension reform on public and private workers, and apply this analysis to all fifty U.S. states. We consider (i) closing the pension plan to new entrants, (ii) reducing benefits together with wage increases and (iii) suspending cost-of-living-adjustments (COLAs). While each reform effectively reduces long run taxes, variation in fiscal and demographic features creates significant differences in state outcomes. Closing the plan...

August 18, 2023
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18Aug

Public Employee Pensions and Municipal Insolvency

By Sean Myers  This paper studies how municipal governments jointly manage spending, credit market borrowing, and public employee pensions. I model governments as levered investors who must meet non-defaultable pension obligations and may value government spending more than citizens. I quantify the model using California city-level data, including a new record of fiscal emergencies, tax increases required to maintain essential services. After the financial crisis depleted pension funds, cities engaged in excessive risk-taking: the fiscal emergency option encouraged gambling for...

August 18, 2023
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18Aug

US. Industry awaits SEC vote on private fund advisers rule

The SEC is scheduled to vote on a controversial rule Aug. 23 that would require enhanced disclosure from private fund advisers and prohibit certain fee arrangements — and industry players are watching closely. In its agenda for the Aug. 23 meeting, the regulatory agency said it plans to consider adopting the rule it proposed back in February 2022. Specifically, the rule proposal would require private fund managers to provide quarterly statements to its investors, revealing more information on fees, expenses and performance. It would...

August 18, 2023
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18Aug

US. NYC Comptroller Lander & Pension Fund Trustees Warn Entertainment Giants that They Risk Losing Investor Confidence over Prolonged Strikes

The trustees of the five New York City pension funds, led by New York City Comptroller Brad Lander, sent letters to the Chief Executive Officers of Disney, Paramount, and Chairman and Chief Executive Officer of Comcast, urging them to address the ongoing strikes by the Writers Guild of America (WGA) and Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) today. The ongoing WGA and SAG-AFTRA strikes have paralyzed major television and film productions in New York City and across the...

August 18, 2023
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09Aug

Spotlight: New York City Pension Fund Returns for FY 2023

The Office of the New York City Comptroller serves as investment advisor, custodian and trustee for the five New York City public pension funds (collectively referred to as the New York City Retirement Systems, or NYCRS). Through the efforts of the Bureau of Asset Management (BAM), the Comptroller’s office works with the trustees of the five systems to manage over $250 billion in assets, which represents the retirement security that the City of New York has promised to more...

August 9, 2023
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03Aug

New 2020 census data shows an aging America and wide racial gaps between generations

This report is part of a series by the author on the results of the 2020 census. In April 2021, the Census Bureau released the first set of results from the 2020 decennial census, providing a snapshot of the U.S. population for use in congressional reapportionment and redistricting. But recently, the agency released more detailed census information that shows a fuller picture of the population as it stood during the once-a-decade headcount. These new statistics provide more information on the nation’s...

August 3, 2023
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02Aug

Retirement savers are anxious about inflation and stock-market volatility: survey

More than a third of Americans say they intend to delay their retirement Inflation and stock-market volatility have some retirement savers less confident about reaching their goals, a new survey found. More than six in 10 workers say inflation is an "obstacle to saving for a comfortable retirement," according to a Charles Schwab survey of 401(k) plan participants -- up from 45% who said the same last year. Another four in 10 people say the stock market is an obstacle to...

August 2, 2023
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01Aug

Can Gen X retire? With traditional sources of income in doubt, this group can redefine the future of retirement.

For decades, many American workers could plan on roughly 40% of their retirement needs being covered by Social Security with another 60% covered by traditional pensions and savings. But people approaching retirement today face a different reality. Traditional pensions have declined significantly since 1985, and Social Security trust fund reserves could be depleted by 2033, making the idea of benefit increases, even for middle class folks who have worked hard all their lives, highly unlikely. This means that Generation X...

August 1, 2023
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July 2023
26Jul

Houston Police Officers reports 7% return for fiscal year

Houston Police Officers' Pension System posted a preliminary net return of 7% for the fiscal year ended June 30. The $7.1 billion pension fund's return fell short of the benchmark return of 7.3% for the period, according to an investment update on its website. Annualized returns for the three, five and 10 years ended June 30 were not provided. The pension fund had posted a net loss of 1.3% for the fiscal year ended June 30, 2022. The latest fiscal year's improvement over...

July 26, 2023
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25Jul

Public Pension Funds Continue to Boost Alts Allocations in Search of Higher Returns

Public pension funds have more money in alternative investments than at any point in history, according to a report from the Equable Institute, which warns that “pension funds are addicted to risk.” The nonprofit organization’s State of Pensions 2023 report identified that the risk profiles of U.S. state and local pension funds have changed significantly in recent years, with pension fund alts allocations ballooning to more than $1.6 trillion in 2022 from approximately $100 billion in 2001. Although the authors of the Equable...

July 25, 2023
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