Week of August 8, 2016
• A presentation by Donald Boyd, director of fiscal studies at the Nelson A. Rockefeller Institute of Government, during the National Conference of State Legislatures Summit this week, has everyone talking. In 2014, more than 30 major public plans across the country were underpaid by $100 million or more because plans are taking more risk. Reuters reports, ‘Public Pension Plans’ Risky Investments Could Cost Taxpayers Billions,’ and Pensions&Investments writes, ‘Public DB plans adding risk to combat funding crisis as contributions rise.’
• The San Diego Union-Tribune editorializes the California Public Employees’ Retirement System’s bleak outlook in ‘CalPERS math portends grim future for government budgets,’ saying that weak investment returns and inaction of lawmakers to confront the problem is troubling news.
• The Orange County Register joined in CalPERS coverage with its Watchdog analysis of new data from Transparent California, ‘The 100K Club - public retirees with pensions over $100,000 - are a growing group,’ taxpayer reaction in, ‘Public pension figures for $100K Club hit a nerve, with some saying 'not fair!‘ and an editorial, ‘The 100K club adds new members;’ all which prompted RSI Board Member Chuck Reed’s blog post, ‘Isn’t 17 years of failure enough?’
• Switching gears, the Show-Me Institute’s Michael McShane effectively outlines how teachers are impacted by the pension crisis in ‘Teacher Pensions Have a Math Problem,’ in U.S. News and World Report. Further, St. Louis Public Radio examines Missouri teacher pensions with its special report, ‘COLA fizzles: Retired Missouri teachers won’t get pension increase in 2017.’