May 2024

US. The Myth That Public Workers Don’t Care About Pensions

Although some may argue that pensions are no longer a relevant tool for recruiting and retaining public workers, the historical data and broader research show otherwise. However, with financial literacy being a significant challenge in the United States, it is critical that employers provide the necessary education around these benefits to maximize their potential in the battle to attract and keep talent. As pensions have become less common in the private sector, they have increasingly become a highly coveted benefit for current...

Policy Ideas for Boosting Defined Benefit Pensions In The Private Sector

By Dan Doonan, John Lowell, Jonathan Price, Michael Kreps, Tyler Bond & Zorast Wadia In response to a request for information issued by the U.S. Senate Health, Education, Labor, and Pensions (HELP) Committee, the National Institute on Retirement Security has submitted a research issue brief with policy ideas to help expand defined benefit (DB) pension coverage for private-sector employees. The research brief, Policy Ideas for Boosting Defined Benefit Pensions In The Private Sector, details six options  for Congress to consider to...

US. Public Retirement Systems Need Policies for Navigating Volatile Financial Markets

Over the past decade, policy reforms and increased financial contributions have dramatically improved the cash flow situation of some of the nation’s most troubled state pension plans. Thanks to these changes, no state was at risk of pension insolvency as of fiscal year 2021. Yet for some states, these improvements won’t be enough to provide their pension systems—and the public employees and retirees who rely on them—with long-term stability. In 2021, once-in-a-generation investment returns raised state pension funding to levels...

April 2024

Ghana. Public sector workers to strike May 2 over pensions

The Forum for Public Sector Associations and Unions has hinted at plans to stage a nationwide strike if government fails to resolve all issues bordering on the implementation of pensions for public sector workers. The Forum, in a notice, revealed its members will embark on a strike from Thursday, 2 May 2024, if by Tuesday, 30 April, issues relating to the implementation of pensions for public sector workers remain unresolved. “Notice is hereby served,” the Forum indicated. The Forum is made up...

Nigeria. Abia State Government to Introduce Contributory Pension Scheme for Civil Servants

The Abia State Government, under the leadership of Governor Otti, has announced plans to implement a Pension Contributory Scheme for its civil servants. Mr. Okey Kanu, the Commissioner for Information and Culture, made this revelation during a press briefing following the State Executive Meeting held at the Government House, Umuahia, on Tuesday. According to Kanu, the state government has made significant progress in preparing for the transition to the new pension scheme. He stated, “The state government has concluded plans to...

March 2024

Funded Status of Largest 100 US Public Pension Funds Rises to 78.6%

Public pension funded status increased to 78.6% at the end of February, up from 77.7% the month before, according to the monthly Milliman Inc. 100 Public Pension Funding Index, which tracks the funded status of the largest 100 public defined benefit plans in the U.S. Public plan funded status rose in February to the highest level since May 2022, when funded status for these plans stood at 78.4%, and 78.6% the month before. In the interim, funded status bottomed out at...

Fiscal Stimulus or Debt Relief: The Effect of Federal Pandemic Aid on State and Local Pensions

By Grace Brang, Sewin Chan & Travis St. Clair Between 2020-2021, the U.S. federal government passed four major pieces of legislation that included nearly $1 trillion in aid to state and local governments. One concern with distributing federal stimulus in the form of intergovernmental transfers is that subnational governments may use the aid to pay down unfunded pension liabilities or other debt rather than preserve employment. We examine the effect of fiscal stimulus passed in response to Covid-19 on public...

February 2024

U.S. public pension funding dips in January

The overall estimated funding ratio of the 100 largest U.S. public pension plans fell to 77.7% at the end of January, according to the Milliman 100 Public Pension Funding index. The fall in funding ratio from the year-end number of 78.2% was the result of flat investment returns and rising liabilities. According to Milliman, the aggregate estimated investment return for January was zero, with estimated returns ranging from -1% to 1.1% for the month. "Despite January's lack of investment gains and the...

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

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...