February 2023
13Feb

US. Attention to ESG grew in 2022 along with headwinds

It is tricky to say which was a more volatile issue in 2022 for public pension funds operating under ESG principles — the politics or the markets. They managed to navigate both, and this year many of them are even ratcheting up their sustainable investing agendas. Some, like the $61.4 billion Maryland State Retirement and Pension System, Baltimore, took a page from the largest U.S. funds that added ESG specialists for their investment divisions. Although Maryland CIO Andrew Palmer first formed...

February 13, 2023
News, ,
Read more...
09Feb

The number of older Americans is growing, and many states are unprepared

States with a master plan can more readily make sure diverse programs and agencies coordinate to keep the needs of aging adults at the forefront. New York is the latest state to authorize creation of a Master Plan for Aging, starting the process of developing systems to help older adults lead independent, meaningful and dignified lives in their own homes and communities as long as possible.   While several other states also have developed or are developing similar long-term proposals, which typically...

February 9, 2023
News, ,
Read more...
08Feb

U.S. Anti-ESG bill could cut this State pension returns by $6.7 bln

Proposed legislation to limit the use of sustainable investment factors by fund managers of the U.S. state of Indiana could cut $6.7 billion from the investment returns of a public pension system there over a decade, a fiscal analysis shows. One such bill proposed in Indiana requires public pension system officials to act only in the fiduciary interests of participants and beneficiaries. According to a Feb. 4 "fiscal impact statement" prepared by the Indiana Legislative Services Agency, which advises lawmakers in...

February 8, 2023
News, ,
Read more...
08Feb

New Evidence on the Demand for Advice within Retirement Plans

By Jonathan Reuter & David P. Richardson We study demand for advice by retirement plan participants using administrative records from defined contribution retirement plans offered by 23 institutions where TIAA is the sole recordkeeper. We distinguish advice on asset allocation from advice on retirement income levels, and between participants who are and are not eligible for TIAA’s wealth management services. We find that advice seeking increases with age, account balance and annual contribution level, and is highest among those eligible for wealth management services. However, we...

February 8, 2023
Articles, Investment, Pension design, , ,
Read more...
07Feb

US. Public pension funds lowered expectations for returns as expenses spiked in fiscal 2022

Public retirement systems saw their expenses rise in fiscal 2022, while many reduced their assumed rates of return, according to an annual study by the National Conference on Public Employee Retirement Systems. In fiscal 2022, the pension systems averaged 64 basis points in administrative costs and investment manager fees, up from 54 points the year before. Systems lowered their assumed rates of returns to an average 6.86%, from 7.07% a year earlier. Among all respondents, 60% said they lowered those rates...

February 7, 2023
News, ,
Read more...
03Feb

US pension funds are on the brink of implosion – and Wall Street is ignoring it

By David Sirota As public officials across America prepare to funnel even more of government workers’ savings to private equity moguls, an alarm just sounded for anyone bothering to listen. It is a warning that Wall Street executives, busy skimming fees off retirement nest eggs, want you to ignore. The longer the warning goes unheeded, however, the bigger the financial time bomb may be for workers, retirees and the governments that pay them. Earlier this month, PitchBook – the go-to news...

February 3, 2023
News, OP Ed, , ,
Read more...
02Feb

U.S. A Retirement Income Distribution Plan Is as Critical as Saving

The majority of your life is spent in accumulation mode — earning a steady income and putting money aside for things like retirement, savings, your child’s education or a dream vacation home. After years of investing and saving, it is critical to shift your mindset out of accumulation mode and into distribution, or decumulation, mode when retirement nears. Making that mental shift is difficult for most, but having a comprehensive wealth plan that includes a retirement income distribution strategy...

February 2, 2023
News, , ,
Read more...

January 2023
31Jan

US. SECURE 2.0 to expand auto enrollment

A new law will expand automatic enrollment to all newly formed 401(k) and 403(b) plans, which experts say could significantly boost enrollment in retirement plans. The provision is one of more than 90 in the retirement security package, known as SECURE 2.0, which passed Congress in December and will change the future of the retirement landscape in a myriad of ways. Starting in 2025, all new 401(k) and 403(b) plans will be required to automatically enroll new employees in their plan,...

January 31, 2023
News, ,
Read more...
30Jan

New York State common allocates 11 Billion alternatives

New York State Common Retirement Fund, Albany, disclosed just over $1.1 billion in new commitments completed in December, a transaction report on its website shows. Within private equity, the $233.2 billion pension fund committed $350 million to Apollo Investment Fund X, a buyout fund managed by Apollo Global Management, and $300 million to Hellman & Friedman Capital Partners XI, also a buyout fund. The pension fund also disclosed two commitments to funds managed by KSL Capital Partners: $300 million to real...

January 30, 2023
News, ,
Read more...