Friday Top Five: Retirement Related News for 9/11/2015

Posted on

From Crain's Chicago Business: Here's one public pension that survived the 2008 crisis

The 2008 financial crisis hurt retirement savings, but we found public defined benefit pensions in red states and blue states that survived the market's free-fall in reasonable shape. Surprisingly, one of those well-funded plans is the Illinois Municipal Retirement Fund.

What distinguishes financially sound pensions from others? It's simple: mandated, adequate contributions. "Adequate" means contributions from both employees and employers totaling the amount that actuaries calculate will cover benefits—the actuarial determined contribution, or ADC

From The News & Observer: Berger, Moore deny top House Democrat’s report of state retirement changes

House Democratic Leader Larry Hall called a press conference Thursday to tell reporters that a Republican “secret society” is planning sweeping changes to the state employee retirement system.

Hall said he’s heard that legislative leaders plan to switch to a defined contribution retirement system, either as part of the state budget deal or a separate bill this session.

From Chief Investment Officer: Rick Dahl, CIO of MOSERS, to Receive Lifetime Achievement Award

Rick Dahl, the CIO of the Missouri State Employees’ Retirement System (MOSERS) will receive Chief Investment Officer’s Lifetime Achievement Award at its annual Industry Innovation Awards on December 3 in New York City.

Past winners include Notre Dame’s Scott Malpass, Teacher Retirement System of Texas’ Britt Harris, Strategic Investment Group’s Hilda Ochoa-Brillembourg, and NISA investment Advisors’ Jess Yawitz and Bill Marshall.

MOSERS, relatively small among US public pensions, garners outsized respect far outweighing its approximately $10 billion portfolio. Dahl has driven the fund towards a risk-focused mindset. According to his annual CIO letter from 2014, the shift is “broadly identified as moving from a world where capital is allocated based on expected returns to one where capital is allocated based on expected risk and economic balance.”

From Forbes: Social Security: Can I Really Not Get My Widower's Benefit?

Social Security may be one of your largest assets. What and when you collect will make a huge difference to your lifetime benefits.

Today’s Social Security question is about eligibility for a widow(er)’s benefit while not earning enough to be subject to the earnings test.

From PLANSPONSOR: Former educator has confidence in retirement system

Michael Rathbone and James Shuls (“Teacher pensions more risky”) certainly reflect the bitter distaste St. Louis billionaire Rex Sinquefield of Show-Me Institute has for public education and teacher pensions. Mr. Rathbone and Mr. Shuls are wrong and receive a failing grade. As a retired Missouri educator, here are the reasons why I have confidence in our system:
Print Friendly and PDF