February 2024
22Feb

Closing the Gap: The Role of Public Pensions in Reducing Retirement Inequality

By Nari Rhee This study analyzes the impact of defined benefit pensions, especially public pensions, on retirement income security and wealth distribution by race, gender, and educational attainment in the U.S. It serves as a companion report to Closing the Gap fact sheets, which are designed to inform the public about the social equity impact of pensions in each state and the District of Columbia. Get the report here

February 22, 2024
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22Feb

The Government Pension Identity Crisis

By T. Leigh Anenson, J.D., LL.M., Ph.D. & Hannah R. Weiser, J.D., M.B.A. The Contract Clause once dominated the docket of the Supreme Court. But now the clause belongs to the museum of constitutional law. This artifact, however, is gaining new life in ongoing litigation over public pension reform that significantly impacts the financial benefits of government workers such as teachers, firefighters, and even judges. And, unlike private sector workers, for public servants there is no federal safety net in...

February 22, 2024
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22Feb

UPS to drive $1.2 billion into U.S. pension plans in 2024

The shipping company disclosed its plans in its Feb. 20 10-K filing with the SEC. UPS previously contributed $1.2 billion to the U.S. pension plans in 2023 and $2 billion to the plans in 2022. As of Dec. 31, the actual allocation of the U.S. pension plans was 41.3% U.S. government fixed income, 16.2% corporate fixed income, 13.2% domestic large-cap equities, 11.6% private equity, 9.1% hedge funds, 7% international equities, 5.9% real estate, 2.3% cash and cash equivalents, 2.2% each emerging...

February 22, 2024
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21Feb

US state pensions risk “hard earned savings” by ignoring climate risks

The global cost of extreme weather attributable to climate change is estimated at $143bn per year over the past 20 years, according to a 2023 study in scientific journal Nature. Despite this, US state pension funds are “not taking adequate steps to reduce climate-related financial risks”, finds a new report from three environmental organisations. “Far too few state pensions are taking adequate steps to address climate-related financial risks and protect their members’ hard-earned savings, raising serious concerns about their execution of fiduciary duty – the obligation...

February 21, 2024
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19Feb

US. Legislators approve 50% pension increase for themselves

Two news stories last week proved New Mexico has a working class and a ruling class. The first story was about Santa Fe's minimum wage, which will increase to $14.60 an hour March 1. That's a bump of 4%, or 57 cents an hour. The second story was shorter, almost a footnote. It mentioned New Mexico state senators and representatives approving a bill with the harmless title of "Legislative Retirement Changes." A more accurate heading would be: "50% pension increase for sitting...

February 19, 2024
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16Feb

Trends in State and Local Pension Funds

By Oliver Giesecke & Joshua Rauh Unfunded public pension obligations represent the largest liability for state and local governments in the United States. As of fiscal year 2021, the total reported unfunded liabilities of these plans are $1.076 trillion. In contrast, the market value of the unfunded liability is approximately $6.501 trillion. As a result, the reported funding ratio of 82.5% falls to 43.8% under a market-based valuation. The market values reflect the fact that accrued pension promises are a...

February 16, 2024
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16Feb

US. New York pension fund to divest some Exxon holdings

The New York State Common Retirement Fund will restrict its investments in eight integrated oil and gas companies, including the divestment of a small share of its holdings in Exxon Mobil (XOM.N), New York Comptroller Thomas DiNapoli, who oversees retirement assets, said on Thursday. The move follows a review of the companies' readiness to transition to a low-carbon economy, DiNapoli said in a statement. The move amounts to a compromise measure by the third-largest U.S. state pension fund as it and...

February 16, 2024
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15Feb

U.S., U.K. delivery, ride-hailing drivers stop work on Valentine’s Day over pay, employee benefits

Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine’s Day, calling for higher pay and other changes to their working conditions. In the U.S., Uber Technologies Inc. and Lyft Inc. drivers planned day-long strikes and held mid-day demonstrations at airports in several cities, including Chicago, Philadelphia, Pittsburgh, Miami, Orlando and Tampa, according to Justice for App Workers, the group organizing the effort. Meanwhile, U.K. delivery drivers for Uber Eats, Deliveroo, Just Eat and...

February 15, 2024
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15Feb

US. Public retirement systems’ investment management expenses dip to 4-year low

Public retirement systems saw their investment management expenses drop significantly in fiscal 2023 from the prior year, reaching a four-year low, according to an annual study by the National Conference on Public Employee Retirement Systems. In fiscal 2023, surveyed retirement systems averaged investment management expenses of 39 basis points, down from 49 basis points the year before, while administrative expenses remained steady, according to the study. A Feb. 12 news release revealing the results of the study said the four-year low...

February 15, 2024
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15Feb

Retirement income literacy lacking among older Americans

The American College of Financial Services has unveiled the findings from its 2023 Retirement Income Literacy Study, spotlighting a significant gap in retirement knowledge among older Americans. Drawing from a survey of more than 3,765 individuals ages 50 to 75, the study found a concerning lack of knowledge, with participants garnering an average score of 31% on a retirement literacy quiz. “In the U.S., with the exception of Social Security and the comparatively small number of workers with guaranteed pensions, saving...

February 15, 2024
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