insouciant retweeted
It is not feasible to generalize from one plan to another, or from one time period to another, & a mistake to hold that there is a one-size-fits-all solution to plan design & financing, but there are core principles retained among public retirement plans: buff.ly/2jnrekc
insouciant retweeted
For over 20 yrs, these factors—investment returns, adequacy of employer contributions, changes to plan benefits and financing arrangements, & changes to actuarial methods & assumptions—affected public pensions. This review briefly addresses these factors.buff.ly/3fDoVEM
insouciant retweeted
The Texas Pension Review Board is developing new guidelines that would require systems and their sponsors to move quicker to identify actuarial problems and then develop Funding Soundness Restoration Plans to correct them. tinyurl.com/yc6drk5d #Pensions #Retirement
insouciant retweeted
Five public pension fund funding considerations:1) Actuarially determine the contribution, 2) Build funding discipline, 3) Maintain intergenerational equity,
4) Make costs a consistent % of payroll, and 5) Require clear reporting. buff.ly/2GHwpp6
insouciant retweeted
A recent paper from @PensionDialog looks at how public retirement plans have incorporated risk-sharing features into their plan designs. PERA is included as a case study for the use of automatic changes to contribution rates and benefit levels. Read more: ow.ly/3yOs50v1UvI
Of everything the State of Texas and all of its political subdivisions spend, not counting federal money, less than three percent goes to public pensions. bit.ly/30vBNFp, well below the national average.
Because nearly all state and local retirement systems are shared-financing arrangements, contributions come from both employees and employers. buff.ly/2MsyDzR
NASRA maintains extensive resources on reforms to statewide and some local plans: bit.ly/329gQl8
NASRA updated resource provides incl. changes made to public pension plans since 2016. The report extends the listing of reforms presented in "Significant Reforms to State Retirement Systems," orig. published in '16 and updated in December 2018. buff.ly/2pPqt6r #muniland
Texas is among those states that are making a stronger effort to fully fund their public pensions. @TXlege @GovAbbott
The experience of FY 17 reflects continuation of an improving effort among state & local govt employers to make the full actuarially determined contribution, forestalling future higher costs & strengthening the long-term sustainability of public pensions. buff.ly/2MnZMTz
insouciant retweeted
Guiding Principles for Retirement Security and Public Plan Sustainability. buff.ly/2EZvnpE #muniland #publicpensions #publicfinance #pensions
insouciant retweeted
Over time, investment earnings finance much of the cost of public pensions. Per the Census Bureau, for the 30-year period '88-'17, investment earnings accounted for 62% of pension revenues; employer contributions 26%, and employee contributions 12%. buff.ly/2MsyDzR
University faculty and certain administrators in Texas have an option to participate in either TRS or an optional retirement plan. Participation in one of the two plans is mandatory. All other university staff must participate in TRS.
Retirement plan for State University faculty & staff: In some states it is mandatory for university faculty &/or staff to participate in the statewide retirement system. In others, select groups may elect to join an optional retirement program. buff.ly/2VHwwb0
Most public pension plans have been doing this for years.
Sensitivity analysis performed by an actuary, focuses on actuarial assumptions most significant to a public pension plan. These assumptions incl. those for investment return, inflation, population & payroll growth, & employer contribution effort. buff.ly/2Eipd3H #muniland
Thanks to Senator @joanhuffman for introducing, @txlege for passing (unanimously), and @GovAbbott for signing SB 2224, requiring public pensions in TX to develop a funding policy. This is a vital step toward responsibly funding public pensions.
Terrific succinct video describing paper on risk-sharing in retirement plans for public employees.
NASRA's video executive summary of "In -depth: Risk Sharing in Public Retirement Plans." Watch “Introduction to Shared Risk in Public Pensions” on #Vimeo buff.ly/2EUnEd3
New TX Pension Review Board paper recommends that ALL Texas public retirement systems adopt and maintain a written funding policy that fully funds the plan over as brief a period as possible: bit.ly/2tttYS9